Minister of Tourism, Ibrahim Faisal, has announced strategic initiatives aimed at enticing investors to less-traveled areas of the nation by offering tax and land rent concessions. In an interview with PSM News, Faisal highlighted the primary challenge of expanding tourism to remote regions as the unfavorable return on investment.
Currently, uniform tax rates and land rents apply nationwide, irrespective of the demand or potential returns under existing tourism laws. This situation has made investors hesitant to venture into regions with lower returns due to higher costs associated with tourist transportation.
Faisal noted that developing a resort in the more popular areas costs about USD 45 million, with a return on investment achieved in seven to eight years. However, more remote locations pose a longer return period. To address this issue, the Minister emphasized the need for enhanced connectivity across the country and proposed concessions on taxes and land rents for these areas.
Efforts are underway to amend tourism laws to facilitate these concessions. “We are crafting a policy to attract investments by offering tax and rent relief in low-demand regions. These proposals will soon be presented to the Cabinet,” stated Minister Faisal.
The Minister expressed disappointment over previous governments’ lack of initiative in extending tourism facilities to far-reaching corners like the North and South. Beyond investor incentives, plans are also in motion to connect these areas via international flights, alongside active promotion through government-hosted investment forums.
