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An
Unofficial Translation of the Act
1. (a) This Act provides for the determination of zones and
islands for the development of tourism in the Maldives; the leasing
of islands for development as tourist resorts, the leasing of land
for development as tourist hotels and tourist guesthouses, the leasing
of places for development as marinas, the management of all such
facilities; and the operation of tourist vessels, diving centres
and travel agencies, and the regulation of persons providing such
services.
(b) This Act shall be cited as the “Maldives Tourism Act”.
2. The leasing of islands and land for development as tourist resorts
and tourist hotels, the leasing of places for development as marinas,
the management of tourist resorts, tourist hotels, establishments
such as tourist guesthouses and marinas; and the operation of tourist
vessels, shall all be in accordance with this Act and regulations
made under it.
3. The management of diving centres and travel agencies and the
provision of their services in the Maldives shall be in accordance
with regulations made under this Act.
4. Zones for the development of tourism in the Maldives, islands
for development as tourist resorts and places for development as
marinas shall be determined by the President.
On Tourist Resorts
5. Islands and land for development as tourist resorts
shall be leased to the party that submits the best-qualified bid
in respect of such islands or land in accordance with pre-established
procedures in a public tender held by the Ministry of Tourism. Islands
or land in which the Government makes an investment wholly or in
joint venture shall be exempted from the procedure provided herein.
6. A tourist resort on an island or land leased under this Act shall
be developed under a [lease] agreement to be entered into between
the Government and the lessee of such island or land. This [lease]
agreement shall contain the following:-
a) [the name of] the island or land being leased;
b) the period of the lease;
c) where a specific time period is granted for construction [of
the tourist resort] during the term of the lease, such period and
commencement date of the operation of the [tourist] resort;
d) circumstances warranting premature termination of the agreement
and the procedures to be followed upon such circumstances arising;
e) the amount of the lease rent, method of its assessment and the
manner of its payment;
f) the procedures to be followed in the event of a sublease of the
[tourist] resort or the transfer of management of the resort to
a third party; and
g) the procedures to be followed in the event of a breach of the
agreement by the lessee.
7. (a) An island or land for development as a tourist resort shall
be leased subject to .,the condition that such island or land shall,
upon expiration of the period specified in’ the lease agreement
or upon premature annulment of the agreement, be returned to the
Government in the same condition as it existed when the resort was
under operation, in order for the Government to act in accordance
with subsection (b) of this section.
(b) Upon expiration of the lease period of an island or land for
development as a tourist resort or upon annulment of the agreement
prior to the expiration of its term other than either at the request
of the lessee or on breach of the agreement by the lessee, and upon
return of the island or land to the Government, the monetary value
of the buildings and items on the island or land, after an assessment
has been made in accordance with principles determined by the Auditor
General of the Maldives and after deducting an amount for depreciation
until the date of return of the island or land to the Government,
shall be paid by the Government to the former lessee within two
years from the date of the return of that island or land.
(c) Where an island or land returned to the Government in the circumstances
specified in subsection (b) of this section either upon expiration
of the lease period or upon annulment of the [lease] agreement prior
to the expiration of its term, is leased under section 11 of this
Act to the former lessee of the island or land, the monetary value
in respect of the buildings and items on the island or land as provided
in subsection (b) of this section shall not be payable to that lessee.
8. Save for islands and land leased for development as tourist resorts
as provided in section 9 of this Act, islands or land for development
as tourist resorts shall be leased for a maximum period of 25 years
from the date possession of the island or land is granted to the
lessee.
9. (a) Where the initial investment made for the development of
a tourist resort on an island or land exceeds US$ 10 million, the
Government may in its discretion grant a lease of the island or
land for a maximum period of 35 years after due consideration is
made of the size of the investment and the standard of the proposed
resort.
(b) Where the lessee of an island or land for development of a tourist
resort is a public company that meets all of the conditions specified
below, such island or land may be leased for a period of 50 years:-
a) the [public] company is registered in the Maldives;
b) the development and operation of tourist resorts is included
as an object in the memorandum of association of the [public] company:
c) the [public] company’s shareholders are all Maldivian citizens
and at least 50’.”o of the companies shares are sold
to the public;
d) no more than 1% of the publicly-held shares are held shares are
held by a single shareholder except where the shareholder is an
investment company, in which case no more than 5% of the publicly-held
shares should be held by that investment company; and the shares
were sold to the public in a manner feasible for members of the
public to purchase them and the shares were not sold to a determinate
group of persons.
10 (a) Upon the coming into force of this Act, an additional 4 years
shall: be granted to the lease period of an island or land leased
for development as a tourist resort prior to the coming into force
of this Act.
(b) An additional 25 years shall be granted to the lease period
of an island or land leased for development as a tourist resort
upon application for such extension provided that the lessee has
registered as a public company, has sold at least 50% of its shares
to the public and satisfies the conditions specified in subsection
9(b) of this Act, and provided further that the application for
the extension of the lease period v as made within 4 years from
the date of the coming into force of this Act or within 4 years
from the date possession of the island or land was granted in the
case of a lessee to whom an island or land was leased after the
coming into force of this Act.
(c) If a lessee of an island or land leased for development as a
tourist resort has registered as a public company, has sold at least
50% of its shares to the public and has made an application for
an extension of the lease period in respect of such island or land,
then, provided such company satisfies the conditions set forth in
subsection 9(b) of this Act, an additional 20 years shall be granted
to the lease period of such island or land where the application
was made after a lapse of 4 years from the commencement of the lease
period but before the expiration of half of the term of the lease
period, and if the application is made at any time after the expiration
of half of the term of the lease period, then an additional period
equivalent to the term of the remaining lease period shall be granted
to the lease period.
11. (a) Upon expiration of the term of the lease agreement of an
island or land leased for development as a tourist resort or upon
expiration of the period extended under section 10 of this Act or
where the lessee is divested of possession of the island or land
due to annulment of the agreement prior to the expiration of the
lease period, then a fresh lease in respect of such island or land
may be made in accordance with the manner provided in section 5
of this Act and for a period specified in this Act.
(b) Parties wishing to lease an island or land placed in public
tender to be leased afresh in accordance with subsection (a) of
this section shall when submitting their bid undertake that in the
event the lease is granted to such party, they will pay to the Government
the monetary value of the buildings and items on the island as assessed
in accordance with the principles determined by the Auditor General
of the Maldives after an amount has been deducted for depreciation,
within 1 year from the date possession of the island or land is
granted to such party; provided, however, that where the former
lessee of such an island or land submits a bid to lease the island
or land afresh, such a lessee shall not be required to undertake
to pay the monetary value of the [buildings and] items on the island.
12. An investment made on an island or land leased by the Government
for development as a tourist resort may be sold or the leasehold
rights accruing to a lessee under an agreement made between the
Government and the lessee may be sold or transferred or the shares
of a lessee of an island or land that is a company may be transferred
upon obtaining written approval from the Ministry of Tourism and
in accordance with any conditions stipulated by that Ministry. The
transfer of shares of public companies is excluded from this provision.
13. Where the lessee is a public company that has the lease of an
island or land for a period of 50 years under section 9(b) of this
Act or for a period extended under section 10, and either converts
to a private company or fails to satisfy any of the conditions specified
in section 9(b) of this Act, then the period of extension of the
lease granted to such company by reason of being a public company
shall be deducted.
14. (a) Where an island or land leased under this Act for development
as a tourist resort is required for defence of the Maldives, possession
of such island or land may be divested from the lessee without any
prior notice being given to that effect. Save as provided herein,
the possession of an island or land may be divested from the lessee
prior to the expiration of the lease only in accordance with the
provisions of the [lease] agreement of such island or land.
(b) Where possession of an island or land leased for development
as a tourist resort is divested pursuant to sub-section (a) of this
section on the grounds of it being required for defence of the Maldives,
equitable compensation shall be paid in respect of the investment
made on such island or land.
15. (a) Felling of coconut palms and trees on an island or land
1eased for development as a tourist resort, dredging of the lagoon
of such an island, reclamation of land, or any other’ activity
determined by the Ministry of Tourism as may be likely to cause
a permanent change to the [natural] environment of such places,
may only be carried out after obtaining written permission from
that Ministry and in accordance with relevant regulations made by
it.
(b) Any application pursuant to subsection (a) of this section for
permission of the Ministry of Tourism to carry out dredging of the
lagoon of an island or reclamation of land or any other activity
that may cause a permanent change to the [natural] environment of
such a place shall contain the following:–
1) evidence that the proposed change is fundamental for the provision
of services from such a place; and
2) an environmental impact assessment report submitted to and approved
by the Ministry of Home Affairs, Housing and Environment.
16. (a) Every resort developed on an island or land leased in accordance
with section 5 of this Act shall be operated after registering the
same at the Ministry of Tourism and after obtaining a licence issued
by the Ministry of Tourism to operate a tourist resort.
(b) licence to operate a tourist resort shall be issued in respect
of establishments that satisfy the following conditions:-
1) the construction [of the tourist resor1] is completed in accordance
with guidelines determined by the Ministry of Tourism; and
2) the services determined by the Ministry of Tourism to be necessary
at such establishments are made available at the tourist resort.
On Tourist Hotels and Tourist Guesthouses
17. Neither a tourist hotel nor a tourist guesthouse shall
be operated in the Maldives except after registering the same at
the Ministry of Tourism and after obtaining a licence issued by
the Ministry to operate such establishments.
18. A licence to operate a tourist hotel or a tourist guesthouse
shall be issued to those establishments that satisfy the following
conditions:-
a) the building and facilities are in accordance with guidelines
made by the Ministry of Tourism;
b) the services determined by the Ministry of Tourism to be necessary
at such an establishment are made available at the tourist hotel
or tourist guesthouse;
c) the registration fee prescribed in section 21 of this Act is
paid; and
d) the establishment is situated on an island determined pursuant
to section 4 of this Act for the development of tourism.
19. Where the Government leases any land for development as a tourist
hotel or a tourist guesthouse, such a lease shall be made in accordance
with the provisions of this Act relating to the leasing of islands
or land for development as tourist resorts. Furthermore, the provisions
of this Act relating to tourist resorts shall also apply [equally]
in respect of tourist hotels and tourist guesthouses.
20. No tourist shall be provided accommodation for payment in any
establishment other than a tourist hotel or tourist guesthouse registered
and licensed under this Act or a tourist resort or tourist vessel
licensed under this Act.
21. Every tourist hotel or tourist guesthouse shall he registered
upon payment of a registration fee of MRf 10,000 in the case of
a tourist hotel and MRf 5,000 in the case of a tourist guesthouse.
On Tourist Vessels
22. No tourist vessel shall be operated in the Maldives
except after obtaining a licence from the Ministry of Tourism to
operate such a vessel.
23. A licence for the operation of a tourist vessel shall be issued
to vessels that satisfy the following conditions:-
a) the vessel and its facilities comply with guidelines determined
by the Ministry of Tourism;
b) the services determined by the Ministry of Tourism to be necessary
on such vessel are made available on the vessel; and
c) the vessel is duly registered at the Ministry of Transport and
Civil Aviation.
24. (a) No foreign-registered tourist vessel arriving in the Maldives
shall travel or anchor within any of the territorial waters of the
Maldives except after obtaining permission from the relevant Government
authorities and from the Ministry of Tourism in accordance with
its determined regulations.
(b) The permission referred to in sub-section (a) of this section
for travelling and anchoring in the Maldives shall be issued by
the Ministry of Tourism upon payment of a fee of MRf 5,000. The
[foreign-registered tourist] vessel’s local agent in the Maldives
shall be liable for the payment of this fee.
On Marinas
25. Marinas shall be developed and operated in the Maldives
at such places leased pursuant to section 26 of this Act.
26. Places for development as marinas shall he leased in accordance
with the provisions of this Act relating to the leasing of islands
and land for development as tourist resorts. Furthermore, the provisions
of this Act relating to tourist resorts shall also apply [equally]
in respect of marinas.
27. Marinas shall be developed and operated after obtaining a licence
issued by the Ministry of Tourism to operate such places and in
compliance with guidelines determined by that Ministry in relation
to the development and operation of marinas.
28. The licence referred to in section 27 of this Act for the operation
of marinas shall be issued in respect of marinas that satisfy the
following conditions:-
a) [the marina] is built in compliance with the guidelines determined
by the Ministry of Tourism and is in possession of the required
permission from the relevant Government authorities; and
b) the services determined by the Ministry of Tourism to be necessary
at such place are made available from the marina.
On Diving Centres
29. No diving centre providing services to tourists shall
be operated in the Maldives except after registering the same at
the Ministry of Tourism and after obtaining a licence [to do so]
issued by that Ministry.
30. The licence referred to in section 29 of this Act for the operation
of a diving centre shall be issued to parties that satisfy the following
conditions:-
a) where the party is a company or other business organisation,
the operation of diving centres is included as an object in the
memorandum of association of that company or business organisation;
b) where the party is a foreign company or business organisation,
it is registered at the Ministry of Trade and Industries as a company
or business organisation carrying on business in the Maldives;
c) the [physical] presence of a diving centre operated in accordance
with the guidelines provided in the regulations made under this
Act, and the services determined by the Ministry of Tourism to be
necessary at such centre are made available at the diving centre;
and
d) the registration fee prescribed in section 31 of this Act is
paid.
31. A diving centre referred to in section 29 of this Act shall
he registered upon payment of a registration fee of MRf 5,000.
On Travel Agents
32. No person shall provide travel agency services in the
Maldives except after obtaining a licence [to do so] issued by the
Ministry of Tourism.
33. A licence to provide travel agency services shall be issued
to parties that satisfy the following conditions:–
a) where the party is a company or other business organisation,
the provision of travel agency services is included as an object
in the memorandum of association of that company or business organisation;
b) where the party is a foreign company or business organisation,
it is registered at the Ministry of Trade and Industries as a company
or business organisation carrying on business in the Maldives: and
c) the [physical] presence of an office operated in compliance with
guidelines provided in regulations made under this Act, and the
services determined by the Ministry of Tourism to be necessary at
such office are made available from the travel agency.
34. (a) No person shall act as a tour guide in the Maldives except
after obtaining permission from the Ministry of Tourism in accordance
with regulations made by that Ministry.
(b) Every person acting as a tour guide shall, whilst acting in
the course of business as a tour guide, attach to his attire in
a manner identifiable to others the permission issued to him.
Tax
35. (a) The sum of US$6, or its equivalent in a foreign
currency acceptable to the Maldives Monetary Authority, shall be
collected as tax payable to the Government of the Maldives from
each tourist per day of stay at a tourist resort, tourist hotel,
tourist guesthouse or tourist vessel. The management of the establishment
where the tourist was provided accommodation shall be liable for
collection of that tax from tourists and payment of the due amount
to the Government. The amount of tax due in respect of the preceding
month shall be paid by the 15th day of the current month.
(b) The tax referred to in subsection (a) of this section shal1
be collected for each day of stay in the Maldives from every tourist
that is on board every tourist vessel which has been granted permission
under section 24 of this Act, except for those vessels referred
to in subsection (c) of this section. The tax shall be paid to the
Government prior to the departure of the tourist vessel from the
Maldives. The liability as regards payment of the tax shall be borne
by the tourist vessel’s local agent.
(c) Any foreign-registered tourist vessel arriving in the Maldives
and staying within its territorial waters for a period not exceeding
24 hours shall not be required to pay the tax referred to in subsection
(a) and (b) of this section.
36. Information regarding tourists that were resident in the tourist
resort, tourist hotel, tourist guesthouse or tourist vessel during
the preceding month shall be submitted to the Department of Inland
Revenue before the 8th day of the current month. Such information
shall be submitted in accordance with regulations made by that Department
and in a format as may be determined by it.
37. (a) Where the management of a tourist resort, tourist hotel
or tourist guesthouse or the operator of a tourist vessel is in
violation of this Act as regards payment of tax due, a fine of MRf
1,000 per bed registered at such establishment or vessel at the
time of such violation shall be paid to the Department of Inland
Revenue in addition to the payment of overdue tax.
(b) The tax referred to in section 35 of this Act and the fine referred
to in subsection (a) of this section shall be paid by the end of
the current month. In the event of default in payment during that
period, the licence issued to operate such an establishment shall
be revoked.
(c) Where a licence is revoked under sub-section (b) of this section,
it shall be re-issued upon settlement of the defaulted payment of
tax and fine.
38. Guests of the Government that are accorded special immunities
and privileges shall be exempted from the collection of tax specified
in this Act.
Miscellaneous Matters
39. No foreign party shall engage in any tourism related
activity referred to in this Act in the Maldives except after entering
into the agreement specified in Act No. 25/79 (Maldives Foreign
Investments Act) and after registering the investment at the Ministry
of Tourism in accordance with the provisions.
40. The President shall have the discretion to, determine the principles
for exemption of import duties on materials imported for the construction
of tourist resorts or tourist hotels situated on land leased for
the development of such under this Act. the construction of marinas
or for the purposes of the upgradation of such establishments, and
to exempt such duty in accordance with those principles.
41. All parties engaged in tourism related activities shall, in
accordance with regulations stipulated by the Ministry of Tourism.
provide it with information required to prepare the tourism statistics
of the Maldives.
42. Licences for the operation of tourist resorts, tourist hotels,
tourist guesthouses, marinas. tourist vessels, diving centres and
travel agencies shall be issued under this Act for a period of 5
years. All other licences shall be issued for the period stated
in regulations made by the Ministry of Tourism. Licences shall be
renewed upon expiration of the period for which they have been issued.
43. All licenses issued under this Act shall, unless otherwise provided
in this Act, be displayed in a prominent manner in the establishment
to which the license was issued.
44. The Ministry of Tourism shall have the discretion to classify
tourist resorts, tourist hotels, tourist guesthouses and tourist
vessels into various classes and to determine the services and standards
of those services to be provided by such establishments based upon
their classifications.
45. The Ministry of Tourism shall have the discretion to monitor
tourist resorts, tourist hotels, tourist guesthouses, tourist vessels,
marinas, diving centres and travel agencies and to ensure that the
services provided by such establishments are in accordance with
guidelines determined by the Ministry of Tourism, the provisions
of this Act and any regulations made under it.
46. Where the standard of service provided by a tourist resort,
tourist hotel, tourist guesthouse, tourist vessel, marina, diving
centre or travel agency falls below the guidelines determined by
the Ministry of Tourism, then the Ministry may in its discretion
impose upon such establishment a fine not exceeding MRf 1,000,000
and, taking into account the extent of the default, suspend the
license issued to the establishment until the default is rectified.
47. Except where it is otherwise stated in any other provision of
this Act, a party in default of a provision of this Act shall be
fined by an amount not exceeding MRf 100,000.
48. Those establishments specified in this Act as being required
to be registered or licensed but which are not either registered
or licensed prior to the coming into force of this Act, shall be
registered or licensed within 1 year of the date of the coming into
force of this Act.
49.
Any regulations that are required to be made under this Act, unless
specified otherwise, shall be made and enforced by a party determined
by the President for such purpose.
50.
In this Act, unless the context otherwise requires: –
a)
“tourist resort” means an island or a designated area
of an island that has been developed to accommodate tourists and
to provide board and lodging facilities for them;
b)
“tourist hotel” means an establishment, other than a
tourist resort or tourist guesthouse, that has been developed to
provide board and lodging or [only] lodging for tourists for a payment
decided at a certain rate per day of stay;
c) “tourist guesthouse” means an establishment, other
than a tourist resort or a tourist hotel, that has been developed,
in compliance with standards determined by the Ministry of Tourism,
to provide board and lodging or[only] lodging for tourists for a
payment decided at a certain rate per day of stay;
d)
“tourist vessel” means a seagoing vessel that has been
developed, in compliance with standards determined by the Ministry
of Tourism, to provide board and lodging for tourists for a payment
decided at a certain rate per day of stay on board such vessel;
e)
“marina” means harbours developed for anchoring yachts
and such vessels and to provide various services to those vessels;
f) “diving centres” mean diving schools, diving bases
and all other parties that provide diving services for tourists;
g) “travel agency service” means services provided by
travel agents, tour operators and other parties engaged in arranging
travel on a commercial basis for persons travelling to or from the
Republic of Maldives and excludes those organising Hajj and Umra
[pilgrimages] for Maldivian citizens;
h) “investment company” means banks, insurance companies
and such financial companies and institutions formed to manage and
invest funds of various persons; and
i) “tourist” means every person that enters the Maldives
who is not a Maldivian citizen and is not in possession of a “resident
permit”. A “resident permit” is a permit issued
pursuant to regulations of the relevant authorities permitting an
individual to be resident in the Maldives whilst not being a tourist.
51.
Upon the coming into force of this Act. Act No. 15/79 (Law on Tourism
in the Maldives) and Act No. 3/94 (Law on Leasing of Uninhabited
Islands for the Development of Tourist Resorts) shall be repealed.
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Maldives
Islands 
