What the Ratification of the 10th Amendment to the Maldives Tourism Act Means

On Sunday, the President Ibrahim Mohamed Solih, had ratified the 10^th amendments to the Maldives Tourism Act (Act No. 2/99) which was passed by the Parliament at the 28th sitting of its third session, on 07th December 2020. Following ratification, the Act has been ‎published in the Government Gazette. ‎

Photo: The Marina at CROSSROADS Maldives

The new amendment bestows the President with the powers to allocate islands for the development of;
· Tourist resorts
· Integrated tourism development
· Tourism related real-estate projects
· Tourist hotels and guesthouses
· Yacht Marinas
· Other tourism related projects

Moreover, the amendment does not construe the powers of local councils to allocate areas for tourism development projects in inhabited islands or cities which lie under their administrative jurisdiction, however, in accordance with approved land-use plans.

Photo: Rasdhoo

Apart from this, the Act also details the guidelines under which he Government may sell shares from tourist properties at which the Government holds shares under a joint-venture agreement with private investors. Accordingly, the Government may sell the shares held under Joint-Venture Agreements to the other shareholders of the same property at a fixed price of USD 5 per square meter.

It also comprises of various articles to facilitate the growth of the tourism industry and several provisions for the benefit of the Maldivian community. For an example, there a provisions pertaining to significantly reducing the rent fees of lands leased for tourism purposes in the northern and southern provinces. 

Cover: Maafushi Island