Govt owed up to $600 million in rent from undeveloped tourism properties

A total of 161 islands and lagoons leased for tourism development remain undeveloped, with outstanding rent owed to the government reaching between USD 500 million and USD 600 million, Tourism Minister Mohamed Ameen has said.

Speaking during the government's Ahaa public question-and-answer programme on Sunday night, Ameen said delays in developing leased islands and lagoons had become a major concern for the tourism sector.

According to the minister, development work on some of the properties has been stalled for 20 to 25 years, while others have remained undeveloped for 10 to 12 years.

"These are assets belonging to the people. However, they are now under the control of certain parties without generating any benefit," Ameen said.

He explained that the islands and lagoons had been leased under agreements requiring developers to complete projects and commence operations within specified periods.

The developments were intended to generate revenue for the government through land rent, taxes and other payments.

Ameen said outstanding rent had accumulated over the years, with repeated rescheduling of payment obligations contributing to the amount owed, which now stands at between USD 500 million and USD 600 million.

He said the Ministry of Tourism was responsible for categorising leased properties and establishing deadlines for their development.

However, according to Ameen, previous administrations had repeatedly extended development agreements rather than terminating them when developers failed to meet their obligations.

He said these extensions had allowed outstanding rent to accumulate over extended periods.

The minister acknowledged that resolving the issue would take time but said President Mohamed Muizzu had decided to take action against stalled developments.

As part of these efforts, the government gazetted amendments to the regulations governing the leasing of islands and lagoons last month.

The revised regulations establish four categories for lease-related matters and set out procedures under which development agreements can be terminated.

Ameen said the government would begin implementing the regulations, including initiating the termination of applicable lease agreements, next week.

The measures are intended to address long-delayed tourism developments and the accumulation of unpaid rent on properties leased for tourism purposes.