New tourism act amendment expands leasing rights and tightens licensing rules

06 Dec 2025 | 20:07
President Dr. Muizzu (Photo/President's Office)

President Dr Mohamed Muizzu has ratified the 16th Amendment to the Maldives Tourism Act (Act No. 2/99), following its approval by the People’s Majlis.

The amendment revises the legislative framework for leasing and managing areas designated for tourism development.

It introduces provisions for leasing islands, land, and lagoons for resort projects, establishes Tourism Training Resorts, and outlines new regulations for their operation and management.

Tourism Training Resorts are now formally recognised as tourism facilities, with defined procedures for their lease and development. 

Within inhabited islands and city jurisdictions, only guesthouses or hotels may be developed, and revenue from these must go to the respective Island or City Council.

The amendment also broadens eligibility for leasing tourism properties to State-Owned Enterprises (SOEs) and companies with at least 45% government ownership. 

It permits extensions to resort construction periods and defines lagoon boundaries for leased areas.

Entities providing tourism-related travel planning and management services must now obtain a Tour Operator Licence, including foreign operators who require a Foreign Tour Operator Licence to operate in the Maldives.

The Ministry of Tourism and Environment has been authorised to defer rent and fines for properties closed for redevelopment, in accordance with regulations.

To ensure compliance, the amendment introduces penalties of up to MVR 1 million for providing unlicensed tourist services, based on the nature and duration of violations.

The 16th Amendment has taken effect following its publication in the Government Gazette.

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