Parliament Committee Passes Tourism Act Amendment Bill

The Parliament’s Committee passed a government-submitted bill today to amend the Tourism Act, reducing the payment period for lease extensions of islands and land for tourist resorts from two years to six months.

The bill, sponsored by Dhangethi MP Abdulla Rasheed, was unanimously approved by 75 members during the committee’s this morning session. It will now proceed to the floor for a final vote.

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The proposed amendment to Article 9 of the Tourism Act revises the payment terms for lease extensions of up to 50 years. Under the current law, payments must be settled within two years. However, the new amendment mandates that payments be completed within six months. Lessees who comply will be required to pay USD 100,000 for each year of extension. If the payment is spread over a longer period, the cost increases to USD 200,000 per year.

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The bill also requires lessees to clear all outstanding lease payments, fines, taxes, and fees owed to the state, excluding those extended through agreements with the Tourism Ministry.

During the parliamentary debate on the bill, Ihavandhoo MP Ahmed Naseer highlighted the need for modern techniques to promote the Maldives’ tourism industry. He suggested that the country could use animated content, similar to how Madagascar promotes its tourism sector, to appeal to younger audiences. 

Naseer emphasised the potential of cartoons to positively impact the Maldives’ tourism sector, suggesting that the country create animated characters, like “Nemo,” to showcase its underwater beauty.

Naseer also proposed that other modern promotional methods, such as campaigns during major events like the World Cup, be considered to further boost tourism.

The Maldives’ economy is heavily reliant on tourism, with significant efforts undertaken to promote the industry, including participation in international tourism fairs and conducting roadshows in key markets. The government aims to attract two million tourists this year and three million by 2026.