The government has reduced land concession fees for the reconversion of existing buildings into hotels by around 25%, while maintaining the rates for new hotel construction, according to an executive order published yesterday in the Official Gazette.
The revised fees set the unit price per square metre for converting existing hotels at MOP 4,300 for two-star, MOP4,800 for three-star, MOP5,200 for four-star, MOP5,500 for five-star, and MOP6,000 for five-star luxury hotels, representing declines of MOP1,400 to MOP2,000 compared with 2023 rates.
New hotel developments, by contrast, will continue to be charged at 2023 levels, ranging from MOP8,600 per square metre for two-star hotels to MOP12,000 for five-star luxury projects.
The executive order also updates base fees for the residential, commercial, and industrial sectors, reflecting moderate adjustments.
The revision takes effect immediately, applying to all ongoing applications, and supersedes the previous schedule set two years ago.
Authorities said the move is intended to encourage the adaptation of existing buildings into hotel use, supporting the tourism sector without increasing costs for greenfield developments. LV
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