The Maldives is making big changes to its tourism model, creating a new category of Sustainable Townships, designed for large-scale, integrated developments that combine hospitality, residential real estate, health, education, and renewable energy infrastructure.
Developers will need to invest at least US$500 million to get a foot in the door, a measure which the government says is necessary to ensure the framework targets high-impact investments capable of delivering national benefits.
The government says it wants to diversify the tourism sector “and attract next-generation projects that complement the traditional resort model”.
“Global tourism trends are shifting toward integrated, mixed-use developments that combine short-stay leisure, long-term residency, wellness, and education," the government said.
“Destinations across Asia, the Middle East and the Caribbean are already capturing this segment.”
The government said sustainable townships are intended to complement the Maldives’ traditional resorts rather than replace them, “adding new revenue streams and strengthening the country’s market resilience”.
“Sustainable Townships are expected to generate long-term opportunities in premium real estate tourism, wellness and medical services, and education-focused travel,” the government added.
"By integrating residential, commercial, and public service components, these projects broaden revenue streams, create employment across multiple sectors, and establish the Maldives as a destination for long-stay visitors and high-value investors."
Developers will receive limited, time-bound incentives, including a five percent income tax rate for the first 10 years and 10% for the following decade.
To qualify for incentives, developments must include educational facilities, healthcare infrastructure, food security initiatives and renewable energy projects.