- The Maldives government gazetted new regulations on 10 September allowing termination of agreements for 161 islands and lagoons allocated for resort development but left undeveloped for up to 25 years.
- Minister of Tourism Mohamed Ameen said accumulated land rent owed to the state has reached an estimated USD 500 million to USD 600 million due to repeated deadline extensions.
- The regulations categorise construction-period cases into four groups and establish termination procedures, with practical implementation set to begin within the following week.
The government of Maldives has introduced new regulations allowing agreements for 161 islands and lagoons allocated for resort development to be terminated, as some sites have remained undeveloped for up to 25 years.
Minister of Tourism and Civil Aviation Mohamed Ameen disclosed the figures during the Ahaa public forum, organised jointly by the President’s Office and Public Service Media (PSM), following public concerns over prolonged delays in developing sites allocated for tourism projects.
Minister Ameen said the issue had persisted for years, with some islands and lagoons remaining undeveloped for 10, 12, 20 or even 25 years. He said successive governments had failed to take adequate action to address the problem.
He noted that the prolonged delays affected the interests of both the state and the public, as agreements for resort development require investors to complete construction and open their properties within specified periods.
Opening the resorts would generate additional tax revenue for the state, Minister Ameen said. However, repeated extensions to construction deadlines had prevented agreements from being terminated despite continued delays.
The minister estimated that accumulated land rent owed to the state had reached between USD 500 million and USD 600 million.
To address the issue, the Ministry of Tourism gazetted new regulations on 10 September governing extensions for unfinished tourism projects and the redevelopment of closed properties. The regulations also cover the deferral of rent payments and fines.
Minister Ameen explained that the regulations categorise cases involving construction periods into four groups and establish procedures for initiating the termination of agreements. He elaborated that the measures are intended to address prolonged delays in developing islands and lagoons allocated for tourism projects.
The government would begin taking practical steps to implement the measures within the following week, Minister Ameen stated, describing the decision as an important move by the President in the public interest.
According to the latest statistics published by the Ministry of Tourism and Civil Aviation, 180 resorts are currently operating in the Maldives, with a combined capacity of more than 45,000 beds.
