Amendment seeks to allow resort lease extension with low fee
If passed, resorts will have an additional opportunity to extend the lease by paying a small fee of $5 million instead of $10 million.
Government has proposed a bill to the parliament to amend the tourism law to allow lessees of resort islands to extend the lease by paying a smaller fee.
The bill was introduced by MP Abdulla Rasheed on behalf of the government.
Section 9(a) of the Tourism Act now provides that the lease term of the resort or integrated resort can be extended for another 49 years if certain conditions are met by the lessee.
The condition mentioned in sub-paragraph (a) is that the lessee of the island or land shall have paid any rent or penalty or tax or fee due to the government. This does not include rent and penalties deferred by the tourism ministry under an agreement.
In addition, the 10th amendment to the act requires a lump sum payment of $5 million in extension fees within the first two years from the effective date of December 27, 2020. After that period, a fee of $10 million shall be paid for an extension of 99 years.
The bill proposed to amend Article 9(a)(2) of the Tourism Act is as follows:
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A lump sum of $5 million has been paid as an extension fee within six months of the effective date of the amendment
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After six months from the effective date of the amendment, the fee shall be paid in a lump sum of $10 million
Under the current law, the opportunity to extend the lease of the resort by paying a fee of $5 million expires in December.
If the amendment is passed by the government-controlled parliament, resorts will have an additional opportunity to extend the lease by paying a small fee of $5 million instead of $10 million.
