The government has reduced the fees for extending the lease term of resorts and introduced an instalment payment option, effective from Wednesday.
The change follows the recent amendment to the Tourism Act, which was passed by parliament on Wednesday and ratified by President Mohamed Muizzu Wednesday afternoon. The bill was passed with modifications proposed by the Economic Committee, with 55 out of 67 members voting in favour and seven opposition members voting against it. The law has now been published in the government gazette.
The amendment provides concessions on lease extension fees. A similar fee reduction was introduced in August last year, but the six-month deadline for implementation expired on 29 February. The newly passed amendment extends this concession for another six months. Resort owners applying for an extension within this period will receive a 50% fee reduction until September.
Under the previous regulation:
- A lease extension to 49 years required a payment of $10 million.
- For shorter extensions, the fee was $200,000 per year.
Under the amended regulation:
- A lease extension to 49 years will cost $5 million if applied within the next six months.
- A 20-year extension will cost $2.5 million.
- A 25-year extension will cost $3 million.
Initially, the proposed bill did not include an instalment payment option. However, an article added at the committee stage allows payments to be made in instalments for a 49-year extension.
Under the instalment plan:
- An initial lump sum payment of $1.5 million is required.
- The remaining amount can be paid within 12 months ($4 million) or 24 months ($4.5 million).
- The total amount payable in instalments will exceed $5 million.
Further details on the implementation of these provisions will be outlined in regulations issued by the Ministry of Tourism.
