President Dr Mohamed Muizzu has ratified the 16th Amendment to the Maldives Tourism Act, bringing a series of legislative updates that reshape how islands, lagoons, and land are leased for tourism development while formalising new categories of tourist facilities.
The Amendment, passed by the People’s Majlis on 3 December during its 28th sitting of the session, establishes a framework for leasing areas for resort projects and for the creation and operation of Tourism Training Resorts. These facilities are now formally recognised under the law, with defined procedures for their lease, development, and management.
Under the new provisions, only guesthouses or tourist hotels may be developed within inhabited islands or city jurisdictions, and revenue generated from such establishments must be directed to the respective Island or City Council.
The Amendment clarifies lagoon boundaries for islands leased for tourism and introduces regulatory requirements for tourism-related travel planning and management services. It further provides an extension of up to six months to the construction period of islands, land, or lagoons leased for tourism, outlining the conditions and procedures for granting such extensions.
Another significant change is the expanded eligibility for State-Owned Enterprises, allowing companies in which the Government holds at least 45 per cent of shares to lease islands, lagoons, and land for resort or integrated resort development.
The Amendment also states that travel planning and management services may only be carried out by those holding a Tour Operator Licence. Foreign tour operators registered abroad must now obtain a Foreign Tour Operator Licence to operate in the Maldives.
In addition, the Ministry of Tourism and Environment has been authorised to defer rent payments for properties that close for redevelopment. This includes postponing rent and any fines accrued up to the date of closure, following relevant regulations.
To support regulatory compliance, the Amendment introduces penalties of up to MVR 1 million for providing tourist services without the required licence, with the exact amount determined by the nature of the service and the duration of the violation.
The changes came into effect upon publication in the Government Gazette.
