President Muizzu ratifies bill allowing state-owned companies to develop tourist resorts

President Dr Mohamed Muizzu has on Saturday ratified the bill allowing state-owned companies (SOEs) to be allocated islands and land for the development of tourist resorts.  

The bill was passed in the 28th session of Parliament held on Wednesday.  

The purpose of the bill is to provide for the lease of premises to SOEs for the construction of tourist resorts, tourism training resorts, and other tourism-related facilities. It also allows the allocation of islands, land, or lagoons for integrated resorts and yacht ports.  

The law includes provisions to:  

• Extend the lease period for an island, land, or lagoon for an additional six months.  

• Extend the development period for leased properties.  

• Determine the area of rural lagoons leased for tourism purposes.  

• Issue licenses for tourism-related travel planning services and set procedures for such services.  

• Defer rent and penalties payable during closure periods for redevelopment, as prescribed by regulations.  

The bill also recognizes tourism training resorts as service facilities, setting procedures for leasing, developing, and operating them. It further allows guesthouses and hotels to be developed within residential islands or cities, with revenue paid to the respective island or city council.  

At the same time, the law stipulates that only licensed tour operators can provide tourism-related trip planning services in the Maldives. Foreign tour operators must obtain a special license before operating. Anyone providing tourist services without a license may be fined up to MVR 1 million, depending on the type and duration of service.  

The government has been handing over projects outside the mandate of SOEs to these companies. In response to the public criticism it receives, it says the purpose is to cut costs. This ratified amendment now formally allows SOEs (the government) to operate resorts in the tourism sector as well.  

Notably, the Act has been amended to empower the President to allocate islands, land, or lagoons for resort development, including those under the jurisdiction of local councils.