Parliament approves shortening payment period for resort lease extensions

The parliament on Monday has approved the amendment to Tourism Act to shorten the payment period of extension to the lease of islands and lands issued for tourism from two years to six months.

The bill, sponsored by Dhangethi MP Abdulla Rasheed, are amendments to Article 9 of the Tourism Act, and was submitted to the parliament during last Tuesday’s sitting.

The bill was sent to the parliament’s Whole House Committee, which was subsequently passed by the committee last Thursday.

In accordance with the Whole House Committee’s decision, the bill was approved with 76 member votes with no votes against it.

The law currently stipulates that the payment for lease extensions of up to 50 years must be settled within two years, which will shorten to six months with the new amendment.

As such, those who agree to settle the payment within six months will need to pay USD 100,000 for each year of extension. Those who agree to settle the payment over a period of more than six months will be required to pay USD 200,000 for each year of extension.

The bill also stipulates that lessees must settle all outstanding leases, fines, taxes and fees owed to the state. This however, does not include the lease payments and fines extended through agreements with the Ministry of Tourism.