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Government to take action against resorts that fail to pay rent and penalties under tourism leases

Aerial view of a resort in the Maldives. (Photo/TTM)

The government has announced that action will be taken against tourism properties that have not paid their rent or penalties as required under their lease agreements.

In a statement, the Ministry of Tourism said measures will be taken against:

  • properties leased for tourism purposes that have outstanding rent or penalties, and  

  • properties that have suspended services without the Ministry’s permission.

The Ministry has ordered all relevant parties to settle rent and penalties in accordance with the terms of their lease agreements with the government.

The announcement did not specify what actions will be taken. However, under the Tourism Act, failure to pay rent can result in:

  • fines,  

  • cancellation of the lease agreement, and  

  • takeover of the property by the state.

The Ministry said the enforcement move is part of efforts to ensure compliance and protect state revenue from tourism leases.

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