The state received USD 120 million (approximately MVR 1.8 billion) last year from resort lease extensions, land sales and land transfer fees, according to the Ministry of Finance's budget execution report.
The report states that 18 companies paid fees to extend the lease terms of their resorts during the year. In addition, 15 companies paid a combined MVR 196 million in land sale and transfer fees related to resort development.
The revenue follows amendments to the Tourism Act introduced in March last year, which created an incentive for early payment of resort lease extension fees.
Under the amended law:
- A resort lease can be extended by 49 years for a lump-sum payment of USD 5 million if the extension is secured within six months of the amendment taking effect.
- A 20-year extension requires a payment of USD 2.5 million.
- A 25-year extension requires USD 3 million.
After the initial six-month window, the fee for a 49-year lease extension increases to USD 10 million.
Previously, the law required operators to pay USD 100,000 per year of extension, provided payment was made within six months. If paid after that period, the fee doubles to USD 200,000 per year of extension.
