The amendment to the Tourism Act suggesting a reduction in resort rent was withdrawn by the Economic Council on Wednesday.
According to the government, the decision to lower resort rents was made prior to the Russia-Ukraine incursion and has subsequently been reversed.
Following public outcry and concerns from financial institutions, the decision was revised.
During the parliament’s investigation stage, the Governor of the Maldives Monetary Authority (MMA) cited the economic crisis in Sri Lanka as a cautionary tale and warned against lowering resort rents in the face of the Russia-Ukraine invasion’s adverse effects.
In addition, the Maldives Inland Earnings Authority (MIRA) estimates that if the decision is approved, it will result in a loss of around MVR 590 million, or 40% of typical resort rent revenue.
MIRA is presently identifying and shaming 13 resorts for MVR 656 million in rent payment arrears.
While the administration has withdrawn the bill to lower resort rents, the parliament will continue to work on other Tourism Act reforms.
