| 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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