President Dr Mohamed Muizzu has ratified the 16th Amendment to the Maldives Tourism Act, which states that within inhabited islands or city jurisdictions, only tourist guesthouses or tourist hotels may be developed.
It also states that the revenue generated by such establishments for the State must be allocated to the respective Island or City Council.
The Amendment also expands the scope for leasing islands, land, and lagoons to State-Owned Enterprises (SOEs). Companies in which the Government holds at least 45 percent of the shares are now eligible to lease land for the development of tourist resorts or integrated tourist resorts.
The Amendment provides for an extension of up to six months to the lease period of an island, land, or lagoon, and outlines the conditions and procedures for granting extensions to complete development works.
Following this Amendment, tourism-related travel planning and management services in the Maldives may only be undertaken by parties holding a valid Tour Operator Licence. Foreign tour operators registered abroad must obtain a Foreign Tour Operator Licence to provide services in the Maldives.
Additionally, the Ministry of Tourism and Environment has been authorised to defer rent payments for properties closed for redevelopment. This includes the authority to postpone rent and any fines accrued up to the date of closure, in accordance with relevant regulations.
To strengthen compliance, the Amendment stipulates that providing tourist services without the required licence may result in a fine of up to MVR 1 million. The specific penalty will depend on the nature of the service and the duration of the violation.
The Amendment has come into effect following its ratification and publication in the Government Gazette.
