- Five atolls selected for the special expansion projects 

- One island from each atoll will be developed under the "Halal Tourism" concept 

The Ministry of Tourism Unveils plans to expand tourism in underserved Atolls. Under the plan 31 new tourism development projects are announced to be implemented across five atolls where the sector has yet to expand significantly.

President Dr Mohamed Muizzu had reaffirmed his Administration’s commitment to expanding tourism through resort development across underserved atolls.

Referring to his Manifesto and his Presidential Address in February, the President announced on X that the Government will priorities unlocking tourism potential in Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, Laamu, and Addu City.

Giving details of the government decision, Ministry of Tourism said in a statement that policies have been revised to cut lease acquisition rates and location premiums for islands, land and lagoons in these selected atolls. And Lease acquisition rates per hectare for tourism leases through open bidding and cross-subsidy policies have been reduced.

Additionally, under closed bidding, the location premium for lagoons in Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, and Addu City will be fully waived. In Laamu Atoll, lagoon location premiums have been reduced from USD 150,000 to USD 100,000.

For islands leased under the cross-subsidy scheme, size premiums have been fully removed for islands between 20 and 40 hectares, while premiums for islands exceeding 40 hectares have been reduced from USD 2 million to USD 1 million.

Government has also introduced deferred land rent payments for properties developed and opened before the expiry of their grace periods. 

Further incentives include increasing the duty exemption percentage for rental properties in these areas to 15 per cent, and expanding the duty-exempted categories to include furniture, kitchen appliances, electronics, and amenities. Flexible payment options will also be offered for lease acquisition fees under open bidding, with instalment plans available.

Ministry stated that these measures are intended to encourage tourism investment and develop underserved areas. 

The strategy will be implemented through a multi-pronged approach involving targeted concessions, investment incentives, improvements to public infrastructure, and focused marketing efforts aimed at attracting local and foreign investors. The objective, the President said, is to mobilize sustainable investment and stimulate economic activity across these regions.

This move is seen as a critical step toward diversifying the country’s tourism footprint and reducing the concentration of resort development in the central atolls.

In a further development, the Ministry has also opened five islands in these atolls specifically for halal tourism development, once again offering grant concessions for those interested in investing in these areas. With this decision, new doors will be opened for the Maldives’ tourism industry, the government said.

The Ministry of Tourism and Environment said halal tourism is a service designed to cater specifically to the needs of Muslim travelers and to provide hospitality to all types of guests. The concept will be implemented during the resort development phase and during the resort operations phase. In this regard, the government decided to dedicate designated islands in five regions across the country for halal tourism and grant concessions to attract investors to develop and operate the concept of "Halal Tourism". 

The Ministry of Tourism said that one project from each of the five atolls will be identified for the halal tourism model.

In order to attract investors to introduce halal tourism in the region, the lease acquisition cost for the designated islands will be reduced by an additional 20 percent and flexible payment options will be offered for the lease acquisition fee payment such that lease acquisition will be paid in the first quarter of the fifth and sixth years. The government has also decided to waive the land rent for the remainder of the grace period instead of deferring it in case the islands or lagoons that are completed, opened and operated before the grace period ends.

In addition, the government has decided to exempt up to 20 percent of the capital investment of resort development items and to add furniture, kitchen appliances, electronics and other amenities to the duty exemption category.