The Ministry of Tourism and Environment has announced the opening of 31 new tourism development projects with significant financial concessions, targeting atolls in the Maldives where the industry remains underdeveloped.

The initiative follows President Dr Mohamed Muizzu’s recent announcement to expand tourism across Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, Laamu, and Addu City, regions with minimal resort developments.

In its statement, the Ministry said policies have been revised to reduce lease acquisition rates and location premiums for islands, land, and lagoons in these atolls. Lease acquisition rates per hectare for tourism leases through open bidding and cross-subsidy policies have been reduced.

Additionally, under closed bidding, the location premium for lagoons in Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, and Addu City will be fully waived. In Laamu Atoll, lagoon location premiums have been reduced from USD 150,000 to USD 100,000.

For islands leased under the cross-subsidy scheme, size premiums have been fully removed for islands between 20 and 40 hectares, while premiums for islands exceeding 40 hectares have been reduced from USD 2 million to USD 1 million.

The Government has also introduced deferred land rent payments for properties developed and opened before the expiry of their grace periods. Further incentives include increasing the duty exemption percentage for rental properties in these areas to 15 per cent, and expanding the duty-exempted categories to include furniture, kitchen appliances, electronics, and amenities. Flexible payment options will also be offered for lease acquisition fees under open bidding, with instalment plans available.

The Ministry stated that these measures are intended to encourage tourism investment and develop underserved areas. In addition to these efforts, the Ministry has also opened five islands in these atolls specifically for halal tourism development.