Maldives implements new regulations to recover $90M in unpaid resort debts

The Maldives government has introduced new regulations to address significant unpaid debts and stalled development within the tourism sector. Tourism Minister Mohamed Ameen confirmed that unpaid resort rent and fines owed to the state have exceeded $90 million, with some debts dating back to 2013.

Under the new rules, the state is empowered to terminate lease agreements for tourism plots where no development has occurred for eight years and outstanding dues exceed $10 million. The ministry also holds authority to cancel leases if construction is deemed stalled or progressing at an inappropriate speed.

Additionally, the government has implemented a new fee structure for construction extensions. Developers who fail to meet original deadlines can apply for an extension by paying a $100,000 fee, provided they have completed at least 50 percent of construction. Extensions are limited to one year for land plots and two years for lagoon developments.

On the fiscal side, the Maldives Finance Ministry reported that total state revenue and aid reached 28.73 billion rufiyaa as of September 3, driven largely by increases in tourism taxes (TGST) and import duties.