The government has decided to take action against resort operators who fail to pay outstanding rent and penalties, the Ministry of Tourism has said.

In a statement, the ministry said action would be taken against those who have failed to pay rent and penalties due under their lease agreements, in accordance with the Tourism Act and regulations made under the Act.

The ministry urged those who have leased state-owned properties for tourism purposes to settle all outstanding rent and penalties owed to the state in accordance with their agreements.

The ministry did not specify what action would be taken against those who fail to make the payments.

Under the Tourism Act, the government can fine resort operators over unpaid rent, terminate their lease agreements and take over the resorts.

According to Maldives Inland Revenue Authority (MIRA) statistics, outstanding resort rent increased from MVR 5.7 billion to MVR 6 billion during the first three months of this year.

The amount of taxes owed to the state has also increased. MIRA recovered MVR 2 billion in outstanding taxes during the first quarter of the year, with such debts typically recovered through payment notices and the freezing of bank accounts.