The Tourism Ministry has extended the lease terms of four resorts to 99 years under changes to the Tourism Act, allowing resorts to extend lease terms by paying USD 5 million in a single payment.
The 13th Amendment to the Tourism Act, which came into force on August 29, gave six months to extend the lease period of islands, lands and lagoons for resort development to 99 years by paying USD 5 million.
In response to a Right to Information (RTI) request from Adhadhu, the Tourism Ministry said four resorts extended their lease terms to 99 years by paying USD 5 million as mandated by law.
They are:
- Noonu Kendhivaru
- Kaafu Maadhiggaru lagoon
- Kaafu Bolidhuffaru
- Kaafu Fusfaru lagoon
Among the properties that have extended lease terms, Kendhivaru, Maadhiggaru lagoon and Bolidhuffaru are managed by Dubai's Vita Heights. Fusfaru lagoon is managed by Fusfaru Holdings company which has foreign shareholders.
All these properties are currently under development. The satellite images of these properties show that the only place where any actual work has taken place is Bolidhuffaru.
Adhadhu earlier reported that the resort in Bolidhuffaru will be operated by Mandarin Oriental. This will be the brand's first resort in the Maldives.
According to the information from the Tourism Ministry, a total of USD 20 million has been raised so far from the resort lease extensions. The current six-month deadline ends in February.
After that deadline, a lump sum payment of USD 10 million is required to extend the lease to 99 years. If extensions are being made yearly, USD 200,000 must be paid for each year.
