Bill Proposes Assigning Tourism Land Rent to Island Councils
Beachfront with sun loungers on Ukulhas Island in Alif Alif Atoll. | Photo: MV+
A new government-sponsored bill has been submitted to Parliament seeking to amend the Tourism Act so that rent from certain tourism developments within the jurisdiction of inhabited islands is treated as income of the respective island councils, rather than remaining as central government revenue.
The amendment was submitted by Hithadhoo North MP Mohamed Sinan on behalf of the government. It targets tourism plots on inhabited islands, as well as lagoons and uninhabited islands that fall under the jurisdiction of an island and are leased for tourism purposes.
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Under the proposed changes, rent paid to the government from tourism plots leased by the state on inhabited islands would be classified as income of the relevant island council and transferred to that council. At present, the government has leased large areas of some islands for tourism purposes, with the rent going to the central government and none of the funds allocated to the island councils.
The existing Tourism Act gives island councils the authority to decide which areas on inhabited islands are designated for tourism development. However, it also allows the President to lease special zones, lagoons and uninhabited islands that come under the jurisdiction of an island for tourism purposes.
The bill seeks to ensure that island councils benefit financially from such leases. According to the proposed amendment, rent from lagoons and uninhabited islands designated by the President for tourism development, where those areas fall within the jurisdiction of an island, would also be treated as income of that island’s council.
The new bill would extend the financial benefits of these arrangements to local councils. According to the proposed amendment, rent from lagoons and uninhabited islands designated by the President for tourism development would also be treated as income of the relevant island council.
In a letter to Parliament, MP Sinan said the purpose of the bill is to create a clear system for leasing land to state-owned companies for resort development, and to establish a framework for developing tourist training resorts. The bill also aims to set out policies for resort leasing and operations, and to extend the timeframe allowed for resort development.
The draft further includes changes related to licensing of tourism-related trips and other enforcement measures, with the intention of strengthening regulation in the sector.
MP Sinan’s bill introduces 20 amendments to different Articles of the Tourism Act, reflecting recent policy changes on tourism development and revenue sharing.
