Tourism Ministry Lowers Lease Costs for Resort Islands in Six Atolls
Base rates and per-hectare charges fall for islands leased under the cross-subsidy scheme in northern and southern atolls. The concession runs until June 2027.
The Tourism Ministry has lowered the cost of acquiring leases on islands in six atolls for tourism development under its cross-subsidy scheme, in an announcement dated 18 October.
The revised rates apply to islands in Haa Alif, Haa Dhaal, Shaviyani, Thaa and Laamu atolls and in Addu City. The base rate falls by US$100,000 in each area. The charge per hectare falls by US$15,000. The premium for the largest islands is halved to US$500,000.
The announcement, numbered (IUL)88-PS/88/2026/163, amends rates the ministry published on 29 June 2025. Both were issued under Regulation 2022/R-125, which governs leasing islands, land and lagoons for tourism under cross-subsidisation.
The ministry said the concession rates apply only to these six areas. They remain in effect for two years from the June 2025 announcement, which runs to June 2027.
How the Cost Is Calculated
The lease acquisition cost of an island is its base rate, plus the per-hectare rate multiplied by its land area, plus a premium for size. Land area is measured within the mean tide line by survey.
| Area | Base rate | Per hectare | Premium, islands over 40 hectares |
|---|---|---|---|
| Haa Alif, Haa Dhaal, Shaviyani, Thaa, Addu | US$500,000 → US$400,000 | US$50,000 → US$35,000 | US$1m → US$500,000 |
| Laamu | US$800,000 → US$700,000 | US$75,000 → US$60,000 | US$1m → US$500,000 |
June 2025 rates → October 2026 rates. Source: Tourism Ministry.
Neither schedule charges a premium for islands of 20 to 40 hectares. The June 2025 table called the larger charge a location premium and applied it to islands of more than 40 hectares. The new table calls it a size premium and applies it to islands of 41 hectares or more.
On those formulas, a 15-hectare island in Haa Alif would cost US$925,000, down from US$1.25 million. A 45-hectare island in Thaa would cost about US$2.48 million, down from US$3.75 million. A 15-hectare island in Laamu would cost US$1.6 million, down from about US$1.93 million.
Reclamation and Lagoons
Both schedules allow land reclamation on payment of an acquisition cost for the reclaimed area. The ministry calculates it as the per-hectare rate multiplied by the proposed reclamation area, multiplied by 70%. The lower per-hectare rates therefore also reduce the cost of reclamation.
The June 2025 announcement also set separate rates for lagoons, based on the area of shallow lagoon. The document attached to the October announcement contains only the island table.
Cross-Subsidy Allocations
The 15th amendment to the Maldives Tourism Act, ratified on 19 March 2025, revised the legal framework for allocating islands, land and lagoons for tourism under cross-subsidy. It requires allocations for resort development under cross-subsidy to align with government policies aimed at economic and social benefits, according to the President’s Office.
Separately, regulations gazetted on 10 September allow the state to terminate leases on resort sites where development has stalled.
The October announcement does not list the islands that are available under the cross-subsidy scheme.
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