USD 43 mn in 6 months from acquisition fees for islands

People’s Majlis majority leader, ViliMale’ MP Ahmed Nihan Hussain Manik announced on Tuesday that the state had received over USD 40 million (MVR 616 million) in acquisition fees for islands and lagoons leased for tourist resort development during the past six months.

Speaking during the debate on the bill Nihan proposed to the Majlis to amend Tourism Act, he said that the amendment to have companies pay the acquisition fee in bulk was of great benefit to the people.

“Tourism Ministry received more than 40 million, up to 43 million in acquisition fee the past six months. This can be confirmed through MIRA,” he said.

Nihan said that it was the first time for government to receive such a large amount of money in such a short period of time.

The bill says that an island or lagoon or plot of land can be leased with or without public announcement.

An island or lagoon or plot of land can be leased without public announcement if the details of the project are shared with Ministry of Tourism. Such parties need to prove that the island, lagoon or land is suitable to run the proposed project in – from an environmental perspective, and they also need to be technically capable, and financially capable of paying the acquisition fee in bulk.

Nihan said that Tourism Ministry already leased islands without public announcement, and what he wants to do is make sure its carried out within the boundaries of law.

The bill states that the process needs to be made fair and transparent. It requires for permission of President’s Office before islands, lagoons and land are leased, and for the information to be shared with Anti-Corruption Commission and Auditor General’s Office after the decision is made.

The bill also calls for government to be allowed to sell their shares of joint venture companies set up for tourism, and for green tax to be taken from tourists who visit guest houses.