Important changes were made when the 15th Amendment to the Maldives Tourism Act was adopted by the Maldivian government on 19th March 2025. The purpose of these changes is to formalize redevelopment procedures, enhance compliance, control advertising, and expedite resort lease extensions. The main updates and their ramifications are shown below.
Resorts now have more time to seek reduced lease extension fees thanks to the 15th Amendment. The deadline has been moved from 28th February 2025 to 18th September 2025.
In order to prolong their resort leases, leaseholders now have a variety of payment alternatives:
- Up to 50 years: USD 100,000 per year for lump sum payments within the new window, or USD 200,000 per year for payments made after this window.
- From 50 to 70 years: USD 2.5 million lump sum if paid within the new window.
- From 50 to 75 years: USD 3 million lump sum if paid within the new window.
- From 50 to 99 years: USD 5 million lump sum if paid within the new window, or USD 5.5 million in installments over 12 months, or USD 6 million in installments over 24 months. Payments made after the window closes will require a lump sum of USD 10 million.
Importantly, extensions that are paid in installments won’t start until the entire sum is paid. The application will be canceled if payment deadlines are missed, and any money paid in advance will not be reimbursed but could be applied to future lease rent.
It is now mandatory for tourism establishments to create a Compliance Code that specifies operational and safety requirements for all of their services. These codes must be submitted by 18th March 2026. The Ministry of Tourism is responsible for establishing the minimal requirements that these codes must adhere to.
The 15th Amendment establishes advertising rules for vacation homes for the first time. The following regulations are now mandatory for establishments:
- Properties can only be marketed as the type of facility stated in their registration or operating license.
- Establishments classified by the Ministry under specific categories must adhere to their designated category in advertisements.
- Tourism properties must ensure accuracy in descriptions of services, surroundings, and facilities.
Before running ads, properties that are still in development must receive Ministry approval.
The previous fund established under the Public Finance Act is replaced by a Tourism Trust Fund, which is formally established by the 15th Amendment. This recently created fund will adhere to specified guidelines for investing, spending, and management.
The amendment permits municipal councils to designate land under their purview for guesthouses and tourist hotels in their Land Use Plans. However, only the President has the authority to designate deserted islands and lagoons for the development of tourism.
Important definitions are updated by the 15th Amendment:
- The term “Hotel” has been replaced with “Tourist Hotel,” which excludes resorts, resort hotels, and guesthouses.
- The definition of “Tourist Guesthouse” has been revised to confirm that such properties can be developed on land leased by local councils.
The deadline for the Ministry of Tourism to introduce the rules required to put these amendments into effect is 18th June 2025. Now that the 15th Amendment is in force, travel agencies need to become acquainted with the revised Tourism Act regulations in order to prevent fines and guarantee adherence. These reforms, which range from modified lease extension fees to more stringent advertising rules, are intended to increase accountability and transparency in the Maldives’ crucial tourism industry.
