President Dr Mohamed Muizzu has ratified the 16th Amendment to the Maldives Tourism Act, ushering in one of the most comprehensive overhauls to the country’s tourism legislative framework in recent years. The amendment, passed by the 20th People’s Majlis on 3 December, introduces sweeping reforms aimed at strengthening regulation, boosting investment, and modernising the industry’s operational landscape.
The revision establishes a clear legal basis for leasing areas for new tourist resort developments and for creating and operating Tourism Training Resorts. These training resorts, formally recognised for the first time as tourist facilities, will follow defined procedures for lease, development, and management. The amendment also clarifies that only tourist guesthouses or tourist hotels may be developed within inhabited islands or city jurisdictions, with all revenue from such operations allocated directly to the respective Island or City Council.
A major structural shift in the law expands eligibility for leasing islands, land, and lagoons to State-Owned Enterprises. Any company with at least 45 per cent government shareholding may now acquire land for tourist resort or integrated resort development, paving the way for broader public sector participation in strategic tourism projects.
The amendment introduces mechanisms to extend resort construction periods, including granting up to six months of additional lease time for islands, land, or lagoons where development delays occur. Clear conditions and procedures have been set for approving such extensions.
In a significant tightening of regulatory standards, all tourism-related travel planning and management activities must now be undertaken by parties holding a valid Tour Operator Licence. Foreign tour operators are required to secure a Foreign Tour Operator Licence before offering services in the Maldives. Unlicensed service provision may incur fines of up to MVR 1 million, depending on the type of violation and its duration.
The Ministry of Tourism and Environment has also been granted authority to defer rent payments for properties closed for redevelopment. This includes the suspension of rent and accumulated fines until the date of closure, subject to regulatory conditions.
With ratification complete and publication in the Government Gazette, the amendment is now in effect, marking a decisive step in the administration’s agenda to streamline governance, attract investment, and enhance the Maldives’ position as a leading global tourism destination.
