Tourism Minister Dr. Abdulla Mausoom said on Monday that they have sent notices to 18 resorts that have failed to pay land rent.
While answering questions by parliamentarians, Dr. Mausoom said they were issuing notices to resorts that have not paid the rent as stipulated in the regulations regarding this matter. He said the ministry also have the authority to withhold the license to one resort.
Even though he said notices have been sent to 18 resorts, he did not clarify whether these were notices to dissolve the operating licenses of the resorts, or whether the resorts were given an extended duration to pay the owned money to the ministry.
He said closing a resort would be disadvantageous to Maldives’ economy, as well as Maldivians that may lose their current jobs because of such a move. Therefore, discussions are underway with the resorts to obtain the money, he said.
“If the state does not own money it is owed, we will take the necessary action on behalf of itself and its citizens,” Mausoom said.
As the majority of the state’s income comes from tourism, the minister said he will constantly be working to ensure the state receives it.
The government had previously proposed an amendment to the Tourism Act to reduce land rent for resorts. However, the amendment will be withdrawn after the governor and financial institutions advised that the state would suffer huge financial losses.
The state had previously suggested an amendment to the Tourism Act to reduce the land rent from resorts. However, President Ibrahim Mohamed Solih had decided last week to withdraw the sections pertaining to the reduced resort rent from the proposed amendments. The amendments had garnered a lot of criticism and concern as reducing income sources when the global economy is uncertain may lead to further economic obstacles to Maldives.
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