14th Amendment to the Tourism Act: Streamlining Lease Process, Increasing Green Tax

The Maldives Parliament is currently considering the Bill on the 14th Amendment to the Tourism Act (Law No. 2/99), which proposes streamlining the process of leasing islands, land, and lagoons for tourism development. This amendment also proposes increasing the Green Tax rates.

Elimination of Presidential Office Approval for Leases

 Currently, the Ministry of Tourism (MOT) requires prior approval from the President's Office before leasing any island, land, or lagoon for tourism purposes. The amendment proposes to remove this requirement, granting the MOT greater autonomy in lease negotiations and approvals. This change is expected to expedite the leasing process and reduce bureaucratic hurdles.

Shifting Consultation from President's Office to the President

The existing law mandates that the MOT consult with the President’s Office when compiling the annual list of islands, land, and lagoons available for tourism leases. The amendment proposes to replace this with a requirement to consult the President directly instead. Additionally, any amendments to this list will also require the direct consultation from the President instead of President’s Office.

Proposed Green Tax Increase

 This amendment proposes to increase the Green Tax rates as follows:

• Guesthouses (fewer than 50 rooms): $6 per person per night (increased from $3)

• Larger Establishments (50+ rooms) including resorts and city hotels: $12 per person per night (increased from $6)

These changes will come into effect from 1 January 2025.

Exemption: Children under two years of age will be exempt from the Green Tax.

 This article provides a general overview of the proposed amendments to the Tourism Act 2/99. It is not intended as legal advice. For specific legal guidance regarding tourism investments and development in the Maldives, please consult with our experienced team of attorneys.