31 new projects opened with major concessions for tourism development

Ministry of Tourism has today opened 31 new tourism development projects with significant financial concessions, targeting atolls in the Maldives where the industry remains underdeveloped.

This round of projects includes opportunities for development in Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, Laamu, and Addu Atolls.

According to the Ministry, the lease acquisition prices for these islands have been reduced by approximately 30–70 percent compared to previous rates. The revised rates apply to islands, lagoons, and plots of land released for tourism under open bidding and the cross-subsidy scheme.

The Ministry stated that lease rates per hectare have been reduced under current regulations. Substantial price reductions have also been applied to projects leased under closed bidding.

• Removal of the location premium for islands in Thaa Atoll.

• Removal of the location premium for lagoons in Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, and Addu Atolls.

• Reduction of the location premium for lagoons in Laamu Atoll from USD 150,000 to USD 100,000.

• A 30 percent reduction in the premium for lagoons in Ha Alif, Haa Dhaalu, Shaviyani, Thaa, and Laamu Atolls.

The location premium is factored into lease acquisition costs for islands and lagoons.

For properties leased under the cross-subsidy scheme, size premiums for islands between 20 and 40 hectares have been removed. In addition, the size premium for islands larger than 40 hectares in the six targeted atolls has been reduced from USD 2 million to USD 1 million.

Further incentives include a rent deferral benefit for developments completed and opened before the grace period ends. Additionally, the duty-free allowance for leased properties has been raised to 15 percent. This covers duty exemptions for furniture, kitchen equipment, electronics, and other amenities imported after the development phase.

The Ministry also announced that lease acquisition payments for islands and lagoons released under open bidding can be made in installments. These financial incentives are expected to accelerate tourism growth in the designated atolls, bringing economic benefits to the local populations.

• 2 in Haa Alif Atoll

• 5 in Haa Dhaalu Atoll

• 3 in Thaa Atoll

• 2 in Laamu Atoll

• 3 in Haa Alif Atoll

• 5 in Haa Dhaalu Atoll

• 3 in Shaviyani Atoll

• 2 in Thaa Atoll

• 1 in Laamu Atoll

The prices for islands that were released under open bidding range from USD 1.5 million to USD 2.1 million.

In addition to these developments, the Ministry has also opened five islands or lagoons specifically for development as halal tourism destinations, under a combination of open bidding, closed bidding, and cross-subsidy schemes.