13th Amendment to the Tourism Act ratified into law

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The 13th Amendment (the “13th Amendment”) to the Maldives Tourism Act (Act Number 2/99) (the “Act”) has been ratified by the President of the Republic of Maldives on 29 August 2024 introducing changes to the lease extension payment periods set out in the Act. 

The main development under the 13th Amendment is the reopening of the window within which parties are able to pay the reduced extension fees set out in the Act for the extension of lease periods of properties leased for the development of tourist resorts which had earlier expired on 27 December 2022. 

Following the 13th Amendment coming into effect, the lease extension fees payable are as follows:

Extension of lease period up to 50 years

  • USD 100,000 per year of lease extension, where the lessee agrees to settle the amount by 28 February 2025. 
  • USD 200,000 per year of lease extension, where the lessee agrees to settle the amount after 28 February 2025.

Extension of lease period up to 99 years (where the lease period is 50 years)

  • A lump sum payment of USD 5,000,000 where the lessee agrees to settle the amount by 28 February 2025.
  • A lump sum payment of USD 10,000,000 where the lessee agrees to settle the amount after 28 February 2025.

The material changes introduced in the 13th Amendment are summarised in the below table. 

Subject Former Provision Changed by the 13th Amendment
Parties that can apply for an extension of the lease up to 50 years Applications can be submitted by parties to whom properties were leased prior to the commencement of the 2nd Amendment of the Act (8 September 2010). Applications can be submitted by any party irrespective of when properties were leased to them.
Fee payment routes for applications for lease extensions to up to 50 years Fees can be paid under either of the following routes:

  1. USD 100,000 per year of extension, where the lessee wishes to extend the lease period within 2 years from 27 December 2020; or
  2. USD 200,000 per year of extension, where the lessee agrees to extend the lease period after 2 years from 27 December 2020.
 Fees for the extension can be paid by either of the following routes:

  1. USD 100,000 per year of lease extension, where the lessee agrees to extend the lease period within 6 months from the date the 13th Amendment comes into effect (29 August 2024);or
  2. USD 200,000 per year of lease extension, where the lessee agrees to extend the lease period after 6 months from the date the 13th Amendment comes into effect (29 August 2024).
Fee payment routes for applications for lease extensions to up to 99 years The fee can be paid under either of the following routes:

  1. A lump sum fee of USD 5,000,000 provided the fee is paid within the first 2 years from 27 December 2020.
  2. A lump sum fee of USD 10,000,000 where the leaseholder makes the payment after 2 years from 27 December 2020.
 The lessee shall make the lease extension payments by either of the following routes:

  1. A lump sum payment of USD 5,000,000 provided the amount is paid within 6 months from the date the 13th Amendment comes into effect (29 August 2024).
  2. A lump sum payment of USD 10,000,000 where the amount is to be paid after 6 months from the date the 13th Amendment comes into effect (29 August 2024).

Effective Date
The 13th Amendment will be effective from 29 August 2024.