Outstanding payments from undeveloped tourism properties top USD 537 million

The government is owed USD 537 million in payments from lagoons and islands leased for tourism that have yet to be developed, says Tourism Minister Mohamed Ameen.

At a press briefing at the President’s Office on Thursday afternoon, Ameen said that there were 128 properties leased for various tourism-related purposes where development works have remained stalled for a long time, some for over 25 years.

The Tourism Ministry publicized a new regulation on Thursday, outlining how to deal with such properties.

Ameen said that such stalled projects were resulting in serious adverse effects on the state and citizens.

“In addition to being denied TGST, Green Tax, airport taxes and other taxes entitled to by the state, it is also restricting employment opportunities available to citizens,” he said.

“Having valuable state resources unutilized and under the control of specific individuals for a long period of time is a huge obstacle to economic development.”

The new regulation publicized on Thursday outlines policies for granting extensions to the construction period, granting additional time to close down properties and restart development works, deferment of lease payments, and payment of deferred leases.

It also sets down special provisions to deal with properties where development works have been stalled for a long time.

Tourism Ministry states that once the new regulation takes effect, it will result in termination of some lease agreements and also restart some stalled projects.

The state will also begin receiving the revenue it is being denied, create new employment opportunities, and result in economic development, added the ministry.