The Ministry of Tourism has officially invited proposals to develop tourist facilities on a selection of uninhabited islands and lagoon plots. The ministry encourages interested parties to submit their development proposals following the guidelines in regulation R-69/2016, which outlines the regulations for the submission of proposals for leasing islands, land, and lagoons for tourism purposes.
The necessary application form can be obtained from the Ministry’s website. Any inquiries or requests for clarification can be directed to the Ministry via email at proposals@tourism.gov.mv
Amendments to Lease Acquisition Costs of Islands and Lagoons
The ministry has also announced amendments to lease acquisition costs. As per the changes to Regulation Number R-69/2016, the revised formula for these costs has been published and attached to the latest announcement.
Lease Acquisition Cost (LAC) for islands is determined by the following formula:
LAC = BASE RATE (island area (ha) x base rate) + LOCATION PREMIUM
According to the announcement, a single location premium will apply to the entire island clusters listed.
The base rates and location premiums for various atolls are as follows:
Meanwhile, the Lease Acquisition Cost (LAC) for lagoons is calculated using the formula:
LAC = BASE RATE [shallow lagoon area (ha) × 3% of base rate] + LOCATION PREMIUM+ Premium (premium rate x base rate)
The base rates and location premiums for various atolls are as follows:
The announcement notes that the premium allocation for shallow lagoons varies based on their size. Lagoons spanning from 15 to 25 hectares will incur an additional charge of USD10 for each USD1 of the base rate. For lagoons ranging between 25 and 35 hectares, the premium increases to USD15 per USD1 of the base rate.
Larger lagoons, between 35 and 50 hectares, will face a premium of USD20 for each USD1 of the base rate. Furthermore, lagoons exceeding 50 hectares will be subject to a higher premium of USD25 for every USD1 of the base rate.
