The Ministry of Tourism and Civil Aviation has cut the lease acquisition costs for islands, lagoons and plots of land offered for tourism development under the cross-subsidy scheme in six atolls.
The revised rates, set out in a ministry announcement dated 18 October, apply only to Haa Alif, Haa Dhaalu, Shaviyani, Thaa, Laamu and Addu.
What changes
In Haa Alif, Haa Dhaalu, Shaviyani, Thaa and Addu, the base rate falls from USD 500,000 to USD 400,000 and the per-hectare rate from USD 50,000 to USD 35,000, according to the ministry's announcements of June 2025 and October 2026.
In Laamu, the base rate falls from USD 800,000 to USD 700,000 and the per-hectare rate from USD 75,000 to USD 60,000.
The premium charged on land larger than 40 hectares is halved in all six areas, from USD 1 million to USD 500,000. No premium applies to land of 20 to 40 hectares.
How the cost is worked out
The lease acquisition cost is the base rate, plus the per-hectare rate multiplied by the land area, plus any size premium. The land area is measured within the mean tide line by survey. Reclamation is allowed on payment of 70% of the per-hectare rate for the area to be reclaimed.
On the new rates, a 30-hectare island in Haa Alif would cost USD 1.45 million to acquire, down from USD 2 million, according to a Maldives Now calculation using the ministry's formula. A 50-hectare island there would fall from USD 4 million to USD 2.65 million.
How long it lasts
The ministry said the concession rates remain in effect for two years from 29 June 2025, the date of its earlier announcement, which runs to June 2027.
The scheme operates under Regulation R-125/2022, the regulation on leasing islands, lands and lagoons under cross-subsidisation for tourism purposes.