Bill on resort lease extension with low fee ratified
Resorts will now have a six-month opportunity to extend the lease by paying a small fee of $5 million instead of $10 million.
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President Mohamed Muizzu on Thursday ratified a bill to amend the tourism law to extend the lease by paying a lower fee.
The Tourism Act earlier provided that the lease term of the resort or integrated resort could be extended for another 49 years if certain conditions were met by the lessee.
The conditions include 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, which was passed on December 27, 2020, required:
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For lease extensions up to 49 additional years, 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
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For extensions up to 50 years, USD 200,000 per year of extension, where the lessee agrees to extend the lease period after two years from December 27, 2020
With the president's ratification on Thursday, the Tourism Act has been amended:
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For lease extensions up to 49 additional years, a lump sum of $5 million shall be paid as an extension fee within six months of the effective date of the amendment; After six months from the effective date of the amendment, the fee shall be paid in a lump sum of $10 million
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For leases up to 50 years, USD 200,000 per year of extension within six months; USD 200,000 to follow after the six-month period
Resorts will now have a six-month opportunity to extend the lease by paying a small fee of $5 million instead of $10 million.
