Maldives launches 31 projects with concessions to expand tourism in undeveloped atolls
The Ministry of Tourism has announced 31 new tourism development projects in atolls where the sector has yet to expand significantly. The ministry is offering investor concessions, including reductions in lease acquisition costs, to encourage investment in Haa Alif, Haa Dhaal, Shaviyani, Thaa, Laamu, and Addu atolls.
Under the initiative, lease acquisition prices have been reduced by approximately 30 to 70 per cent for islands, lagoons, and land allocated for tourism development. These reductions apply to projects awarded through both open bidding and cross-subsidy models.
In addition, the Ministry has announced rate adjustments under close bidding, including:
- Deduction of location premiums for islands and lagoons in Thaa, Haa Alif, Haa Dhaal, Shaviyani, Laamu, and Addu atolls.
- Reduction of the location premium for Laamu Atoll lagoons from USD 150,000 to USD 100,000.
- 30 per cent reduction in location premiums for lagoons in Haa Alif, Haa Dhaal, Shaviyani, and Laamu atolls.
Premiums, including size and location premiums, are part of the lease acquisition cost. The ministry has also reduced size premiums for islands ranging between 20–40 hectares and decreased the premium for islands larger than 40 hectares in the six designated atolls from USD 2 million to USD 1 million.
Developers who open projects before the end of the grace period will be eligible for deferred rent payments during that period. The duty exemption for imported items used in rental property development—such as furniture, kitchen appliances, electronics, and other amenities—has been increased to 15 per cent.
Lease acquisition payments for the islands and lagoons may be made in instalments, according to the ministry.
Projects available through close bidding include:
- Two projects in Haa Alif Atoll
- Five in Haa Dhaal Atoll
- Three in Thaa Atoll
- Two in Laamu Atoll
Projects offered through open bidding include:
- Three in Haa Alif Atoll
- Five in Haa Dhaal Atoll
- Three in Shaviyani Atoll
- Two in Thaa Atoll
- One in Laamu Atoll
The price range for islands offered via open bidding is between USD 1.5 million and USD 2.1 million.
Additionally, five islands or lagoons have been opened for halal tourism development under open bidding, close bidding, and cross-subsidy arrangements.
The Ministry stated that these concessions aim to promote tourism development in atolls previously underrepresented in the sector.
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