President Ratifies Amendments to the Tourism Act

President Dr Mohamed Muizzu ratified the amendments to the Tourism Act yesterday, which empowers the president to determine which islands and lagoons under island councils’ jurisdiction can be allocated for tourism development purposes.

The amendment bill submitted to the Tourist Act by People’s National Congress (PNC) member and parliamentarian for the Thimarafushi constituency Ahmed Riyaz passed yesterday. The bill received 55 votes in favour of it and seven against it.

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The amendment updates the legal framework for allocating islands, land, and lagoons for tourism development under cross-subsidy. It also revises provisions on lease extensions, the redevelopment of tourism establishments, and the establishment of a Tourism Trust Fund.

Under the amendment, land designated for tourism on inhabited islands or cities must comply with the respective urban development plan. The president can designate uninhabited islands and lagoons within these jurisdictions for tourism development, limited to tourist guesthouses and hotels. Resort allocations under cross-subsidy must align with government policies to maximise economic and social benefits. Lease extensions require a fee, with a maximum extension of 49 years.

The amendment lowers lease extension fees for the first six months after the law takes effect. During this period, developers must pay a one-time extension fee of USD 5 million for a 49-year extension. After six months, the fee doubles to USD 10 million for the same extension.

The Ministry of Tourism and Environment will regulate the closure and redevelopment of tourism establishments, enforce a newly established safety and operational standards code, and oversee advertising regulations for tourist service providers. The amendment also dissolves the Tourism Industry Trust Fund and transfers its assets to the newly established Tourism Trust Fund.

The law came into effect yesterday following its publication in the gazette.