President Dr. Mohamed Muizzu ratified the 13th Amendment to the Maldives Tourism Act (Act No. 02/99) on Thursday, marking a significant update to the legislation governing lease payments for islands and land leased by the Ministry of Tourism.

Passed by Parliament on August 19, 2024, during the 30th sitting of its second session, the amendment introduces new deadlines and fee structures for lease period extensions. Under the revised Act, the payment period for each year of lease extension has been reduced to six months.

Leaseholders who choose to pay the extension fee within the first six months after the amendment takes effect will be required to pay USD 100,000 per year. However, those who delay payment beyond this initial period will face an increased fee of USD 200,000 annually.

The amendment also revises the terms for extending leases of tourist resorts and integrated tourist resorts. Leaseholders can extend their leases for an additional forty-nine years by paying a lump sum of USD 5,000,000 within the first six months of the amendment's implementation. Should payment be delayed beyond this period, the fee will double to USD 10,000,000.

Further changes include the extension provisions for islands leased under specific sections of the Tourism Act. Leaseholders of these islands can extend their leases by an additional forty-nine years, provided they pay the USD 5,000,000 extension fee and settle any outstanding rent, fines, or taxes.

Following its ratification, the amended Act has been published in the Government Gazette and is now in effect. This update aims to streamline the lease extension process and adjust fee structures in line with current economic conditions.