Government Increases Cross-Subsidy Dues for Tourism Leases

The Maldivian government has revised the financial terms for leasing islands, land, or lagoons for tourism purposes, significantly increasing the upfront payment required under the cross-subsidy scheme aimed at funding government projects.

Previously, the state required a payment of $1 million (MVR 15.3 million) from the applicant's total project allocation before finalizing the lease agreement. However, under the new regulations announced on Wednesday, if the total project cost exceeds $10 million (MVR 153 million), 50 percent of the total lease amount must be paid prior to signing the lease agreement. The remaining balance is due by the end of the year.

The Ministry of Tourism has invited proposals for cross-subsidies in accordance with the Rules on Leasing Islands or Land or Lagoons for Tourism Purposes, as per Presidential Decree No.: 2024/6. This initiative is targeted at promoting tourism development in rural areas, land, and lagoons.

Interested parties can submit their proposals following the guidelines provided in the rules. The application form and detailed proposal submission requirements are available on the Ministry's website (www.tourism.gov.mv). For further information or clarifications regarding the notification, candidates can contact the ministry via email at [email protected].

This strategic move by the government is aimed at ensuring substantial upfront investments in tourism development projects, thereby facilitating the funding of key national initiatives and infrastructure projects.