Councils empowered to determine market value of land under their jurisdiction leased for tourism

President Ibrahim Mohamed Solih ratifies 11th amendment to Tourism Act. (Photo/President's Office)

President Ibrahim Mohamed Solih, on Thursday, has ratified the 11th amendment to the Tourism Act which allows local councils to determine the market value of land under their administrative jurisdiction in the most profitable way for them when being leased four tourism purposes.

The amendment was passed by the Parliament at the 22nd sitting of its second session for the year held on June 30.

The amendment also states that it is local councils which will grant approval to exchange rights of land plots leased from residential islands.

Apart from this, it outlines provisions to determine the market value of shares of tourist facilities leased under joint ventures to ensure the interests of all stakeholders in the event of a buyback or sale of shares.

Furthermore, it also mandates the relevant ministry to draw up and publish all necessary regulations required by the amendment within six months of its enactment.

The amendment also grants the relevant ministry a twelve-month period to revise the lease agreements of all tourism facilities as per the amendment. However, the duration of the lease specified in lease agreements of tourist facilities should remain unchanged.

Following the ratification of the amendment – it is now in effect and has been published on the government gazette.