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The Tourism Act
of Maldives 1999
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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