The Maldives government has decided to decrease the land rent charged on islands leased for tourism purposes.
Economic Minister Fayyaz Ismail, who is currently heading the Tourism Ministry on Monday published a tweet announcing the government’s decision to decrease land rent in a bid to develop tourism in the atolls. The decision will bring in more investments and development to the atolls, said the minister.
The new change puts a cap on the maximum rent that can be charged for islands leased from southernmost Addu atoll and Fuvahmulah at US$ 800,000. The maximum land rent for islands in Haa Dhaalu and Haa Alif atoll is US$ 1 million. The maximum land rent for islands in Shaviyani, Gaafu Alifu, Gaafu Dhaalu and Laamu atoll is US$ 1.5 million.
The minister said changes will also be brought to the land leased for tourism purposes from inhabited islands. However, land in inhabited islands of Baa and Kaafu atoll, where local tourism is flourishing, will not be included.
While the charges for different areas of Maldives vary, an average rate of US$ 2 will be charged per square meter. Tourism land rent makes up a large percentage of the country’s revenue. Last year, MVR 1.6 billion was collected by the state as tourism land rent.