Government introduces two-year tourism leasing concessions for six atolls

The Ministry of Tourism has introduced reduced lease acquisition rates for tourism development in six atolls for a two-year period, following amendments to the regulation governing the cross-subsidy model for leasing islands, land and lagoons.

The concessions apply to Haa Alif, Haa Dhaalu, Shaviyani, Thaa, Laamu and Addu, with the revised rates aimed at encouraging tourism investment in areas where development has historically been limited.

Under the revised framework, the lease acquisition cost is calculated based on a base rate, an additional charge per hectare of land and a size premium, where applicable.

The specified rates include a base fee of USD 400,000 plus USD 35,000 per hectare, and a base fee of USD 700,000 plus USD 60,000 per hectare.

Land areas between 20 and 40 hectares will be exempt from the size premium, while a premium of USD 500,000 will apply to land areas exceeding 41 hectares.

The regulation also stipulates that an island’s total land area will be determined through a survey measuring the area within the mean tide line.

Permits for land reclamation will be issued after payment of the acquisition cost for the designated reclamation area.

The cost of reclaimed land will be set at 70 per cent of the amount calculated by multiplying the applicable per-hectare rate for the respective atoll by the total reclaimed area.

The two-year concessions are intended to encourage greater investment in tourism development across the six atolls.