President Dr Mohamed Muizzu has ratified the 15th amendment to the Maldives Tourism Act, introducing significant changes to the legal framework governing tourism development in the country. The amendment, passed by the People’s Majlis on March 19, 2025, has now been published in the Government Gazette and is in effect.
The revised law outlines new regulations for allocating islands, land, and lagoons for tourism development under cross-subsidy arrangements. It also introduces changes to lease extensions, the redevelopment of tourism establishments, and the creation of a Tourism Trust Fund.
Under the new provisions, any land designated for tourism development on inhabited islands or cities must comply with the relevant urban development plan. The President is authorised to designate uninhabited islands and lagoons within these jurisdictions for tourism development, but these areas will be restricted to guesthouses and hotels, excluding resort projects.
For resort development under cross-subsidy arrangements, allocations must align with government policies intended to support economic and social objectives. Lease extensions for tourism developments will require a fee, with a maximum extension period set at 49 years.
The Ministry of Tourism and Environment will oversee the closure and redevelopment of tourism establishments to ensure they comply with newly introduced safety and operational standards. Additionally, the ministry is tasked with regulating advertising for tourist service establishments.
The amendment also dissolves the existing Tourism Industry Trust Fund, transferring its assets to the newly formed Tourism Trust Fund, which will manage tourism-related financial resources moving forward.
