Only companies owned 100 percent by the government are permitted to lease land for tourism-related real estate activity, the Tourism Ministry of the Maldives has announced in a regulation today.
The regulation regarding the integrated tourist resort development and management, which was published on the gazette today states that in estates leased for integrated tourism development projects of the government, 50 percent of the land must be set aside for separate villas and rooms under the strata policy.
Apart from the land area set out for the development of the rooms and villas under the strata policy, the remaining land area can be used for tourist resorts and tourist hotel development under the regulation.
The rights to the land lease of such an estate can only be sold after ten years of opening and operating the establishment. The rights can only be sold once 75 percent of the apartments or villas or rooms to be developed under the strata policy is completed and presented in the proposal to the President by the Tourism Ministry.
Those in violation of the regulation could face a fine of MVR 100,000 and a drop in the quality of the services in such integrated tourism establishments against the standards set out by the Tourism Ministry could face a fine of no more than MVR 1 million. The Ministry has the discretion to do so.
Under the regulation, the real estate tourism business would be allowed to flourish in the Maldives.