Maldives to lower tourism land rent as incentive for minimum wage
Maldives government has proposed amendments to the Tourism Act to reduce the land rent of resorts operating in many parts of the country, in a bid to cushion the financial impact on resorts from the recent introduction of minimum wage.
Under the minimum wage required for Maldivian employees at the beginning of this year, resorts fall under the category of large private businesses. Therefore, all Maldivian resort employees are entitled to a minimum of MVR38.46 per hour or a salary of MVR 8,000 per month.
The major amendment to the Tourism Act was to reduce land rent on islands and lagoons leased for the development of resorts, hotels, yacht marinas and integrated tourism projects in two zones of the Maldives. The proposed rates are:
Lands located in Thaa, Laamu, Gaafu Alif and Gaafu Dhaal atolls:
- Smaller than 200,000sqft: USD 5 to USD 750,000; previously allocated to this category was between $6 and $750,000
- Bigger than 200,000sqft: same as before
Lands located in atolls from Noonu to Dhaalu:
- Smaller than 200,000sqft: USD 6 to USD 750,000; previously allocated to this category was between $8 and $1 million
- Smaller than 400,000sqft: USD 1.1 million per year; previously allocated to this category was USD 1.5 million per year
- Bigger than 400,000sqft: USD 1.5 million; previously allocated to this category was USD 2 million
There is no change in the rates allocated for other zones.