President ratifies the bill to increase resort lease to 99 years

President Abdulla Yamin has ratified the amendment to the Tourism law to increase resort leases up to 99 years.

The amendment to the tourism law presented by the MP for the Hoarafushi constituents, Mohamed Ismail representing the government says that the renting period would be extended to 50 years and if the renting party meets certain the conditions, the duration of the renting island or land can be extended for another 49 years.

The requirements are that the island should have an operational tourist resort, and that the lease period extension fee of $5 million should have been paid to the government.

The amendment bill also states that permission must be sought in writing from relevant ministries, in the event that the islands, lands, or lagoons are to be used for an activity that might have a permanent impact on the environment.

Furthermore, it states that any party that violates a regulation under Article 15 of the Tourism Act, shall be fined an amount not exceeding $5 million.

Minister of Tourism Ahmed Adeeb has previously said that the country was in need of economic reform, and efforts in this regard are ongoing despite challenges.

The Tourism Minister said that a land reform has to be made and give foreign ownership and even banks do not approve 40 – 50 years for resort investment and the best duration is 99 years. And if resorts are being leased to 99 years, the government revenue would rise and many resorts would extend their lease.