President Dr. Mohamed Muizzu has ratified the 16th amendment to the Maldives Tourism Act. The primary objective of this amendment is to establish principles for leasing sites to state-owned companies for the development of tourist resorts and tourism training resorts, and for their subsequent operation. It further encompasses extending the development period for leased resort properties, defining lagoon areas for islands leased for tourism purposes, and delineating the licensing and operational guidelines for services related to organizing and conducting tourism tours.
Under this amendment, “Tourism Training Resorts” are explicitly recognized as establishments offering tourist services. Crucially, it mandates that revenue generated from tourist guesthouses or tourist hotels developed in inhabited islands shall be categorized as income for the respective councils, with provisions for these funds to be disbursed to them. Furthermore, the bill expands the options for leasing islands, land, or lagoons for tourism development to companies in which the government holds a minimum of 45% shares. It also stipulates that the development period granted for leased resort sites can be extended by an additional six months.
The provision of tourism-related tour organization and operation services is restricted to entities holding a Tour Operator License. Foreign tour operators registered outside the Maldives will be required to obtain a Foreign Tour Operator License before they can offer services. Additionally, the bill grants the Ministry the discretion to defer the payment of lease rents, and any outstanding rent and fines incurred up to the closure period, for a tourism-operated island or land being closed for redevelopment, in accordance with the regulations. The amendment also specifies that unauthorized provision of tourist services may result in a fine of up to MVR 1 million.
With the President’s ratification and its publication in the Government Gazette, this amendment has now officially come into force.
