Government Moves Against Tourism Leaseholders Over Unpaid Rent and Fines

The Maldivian government has decided to take action against parties that have failed to pay rent and fines owed for properties leased for tourism purposes, the Ministry of Tourism and Civil Aviation announced Monday.

According to the ministry, the decision applies to parties operating properties leased for tourism purposes, as well as properties whose operations have been suspended by the ministry for operating without the required authorization, where outstanding rent and fines remain unpaid under their lease agreements.

However, the ministry did not specify what enforcement measures will be taken against the affected parties.

The ministry has instead urged parties holding properties leased for tourism purposes to settle all outstanding rent and fines owed to the state in accordance with the terms of their respective lease agreements.

Under the Maldives Tourism Act, resorts that fail to pay their lease rent may be subject to fines, and the government can take steps to terminate the lease agreement and reclaim the property. Existing tourism regulations also provide for the collection and enforcement of rent and related fines.

The ministry's announcement comes as the government continues to maintain a regulatory framework for tourism properties involving lease payments, fines and compliance with development and operating requirements. The Ministry of Tourism currently lists regulations covering lease rent, construction-period extensions and the deferment of rent and fines for properties leased for tourism purposes.