The Ministry of Tourism has published a new regulation governing islands and lagoons leased for tourism development that have remained incomplete for an extended period. Under this regulation, lease agreements for properties where no physical development has occurred for over eight years will be subject to immediate termination.
The Ministry has identified 168 such stalled projects, resulting in an estimated USD 537 million in lost revenue owed to the state. To address this issue, undeveloped sites have been categorized into four distinct classes. While stringent action will be taken against inactive sites, the government has decided to provide additional opportunities and concessions to developers who have already commenced construction. These measures aim to revitalize halted projects, recover outstanding taxes and state revenue, create new employment opportunities, and stimulate overall economic growth.
