The 16th Amendment to the Maldives Tourism Act came into force on 6 December 2025, introducing several structural changes that affect resort developers, operators, tour agents, and councils. Regulations to support these changes must be issued within 90 days.
What Has Changed
The amendment revises which tourism services fall under the Act, creates a new category of tourism training resorts, resets the window for reduced lease extension fees, revises construction period extension rules, and introduces fresh licensing requirements for foreign tour operators. It also restructures penalties and updates how tourism developments in council jurisdiction are treated.
New Definitions Under the Act
The scope of services regulated by the Act has been refined. Watersports services provided specifically for tourists are now clearly included, as are dive centres. Resort hotels have been removed from the section listing tourism services, although the term remains defined elsewhere in the Act. The introduction of tourism training resorts marks a future shift toward institutionalised on site training within resort settings.
This part of the amendment clarifies the government’s direction on how tourism activities are categorised and which operations must comply with the Act.
Reduced Lease Extension Window Reopened
One of the most consequential changes for resort owners is the reopening of the reduced extension fee window for resort leases. The previous window, introduced through the 15th Amendment, expired in September 2025. The new six month opportunity runs from 6 December 2025 to 5 June 2026.
Resorts nearing the end of their lease periods or planning long term investments are now expected to reassess their timing and consider applying within this renewed window.
Registration Now Mandatory for Foreign Tour Operators
The amendment requires any foreign tour operator selling or facilitating Maldivian tourism products to obtain a Foreign Tour Operator Licence. Such operators must work through locally licensed tour operators and enter into written affiliation agreements.
For resorts and guesthouses that rely heavily on international wholesalers, OTAs, or collaborations with large overseas travel companies, commercial partnerships may now need to be reviewed and formalised to stay compliant.
Changes to Construction Period Extensions and Resort Boundaries
Construction period extensions and boundary demarcation procedures, previously detailed in regulations, are now part of the Act. While much of the process remains the same, two adjustments are significant.
First, the Ministry now has discretion to require either a payment to the tourism trust fund or a contribution to a Ministry designated development project as part of CSR obligations. Second, a separate extension fee must be paid in addition to CSR obligations.
Ongoing or delayed resort projects could face higher compliance costs, depending on how the upcoming regulations specify payment formulas.
Tourism Training Resorts Introduced
A new category of tourism establishment, the tourism training resort, has been added to the Act. These establishments must provide dedicated training facilities and create structured opportunities for trainees to gain hands on experience. They will operate similarly to standard resorts but with additional training related obligations.
Acquisition fees for these islands will be defined in future regulations and are expected to be more favourable to encourage development.
SOEs May Now Receive Direct Leases
The amendment introduces an exception allowing state owned enterprises to receive direct leases for resort or integrated resort development. Cabinet approval is required, and the SOE must demonstrate financial and professional capacity.
This provision could widen the role of SOEs in tourism development, particularly for strategic or large scale projects.
Tourism Development Within Council Jurisdictions
The amendment narrows the scope of tourism development permitted on islands, plots, and lagoons under council jurisdiction. These locations may now be leased only for tourist guesthouses and tourist hotels.
Furthermore, lease rent collected by the central government from such locations must now be recorded and transferred to the relevant council as council income. This strengthens the financial link between tourism activity and local governance.
Revised Penalty Structure
A new penalty framework replaces the previous flat fine of MVR 100,000. Operating without a required licence may now lead to fines of up to MVR 1,000,000, with an additional daily fine of MVR 100,000 for ongoing violations. Other breaches of the Act may attract fines between MVR 5,000 and MVR 100,000.
Industry stakeholders should expect more active enforcement once the supporting regulations are issued.
What the Industry Should Watch Next
The amendment sets out the legal foundation, but many crucial details will come through upcoming regulations. Stakeholders should monitor:
• How acquisition fees and standards for tourism training resorts are defined
• How CSR and extension fee requirements are calculated for construction period extensions
• Conditions for Foreign Tour Operator Licences and affiliation requirements
• Updated procedures for lease extensions and boundary demarcation
• How councils adapt their development frameworks under the new limitations
With the regulatory timeline set at 90 days, the sector can expect a series of announcements that will determine practical compliance obligations in early 2026.
