The government has proposed an amendment bill to the Tourism Act to make it easier to lease islands, lagoons and land under cross-subsidy basis and to empower President Dr. Mohamed Muizzu to allocate islands and lagoons under the jurisdiction of councils to be leased for tourism purposes.
The 15th amendment to the Tourism Act was proposed by Thimarafushi MP Ahmed Riyaz. The bill was the only matter on the agenda for today's sitting of the People's Majlis.
One proposed amendment to Article 4 of the Act states that the President shall declare the islands and lagoons under the jurisdiction of the island or city council to be developed as areas for tourism purposes.
As per Article 5 of the Act, Islands and land for development as tourist resorts shall be leased under cross-subsidy for the economic and social policies for the benefit of the state. But the proposed amendment adds the phrase "any other important policy."
The change will allow President Muizzu to allocate islands, lagoons and land without stating a specific policy or type of project.
While the bill does not clearly define which policies or types of projects, the latest amendments to the Constitution include Article 115(e), which defines the powers and responsibilities of the President.
The Article was amended to empower the President to give necessary guidance to state institutions and to formulate national development plans and visions for the short, medium and long term.
This means the President will have the power to determine the policies mentioned in the amendment to the Tourism Act and determine such projects.
Earning income through resort lease extension
The bill also includes a six-month period to pay for resort lease extensions for 99 years.
If parties pay USD 100,000 a year, they can extend the lease term of the current 50-year lease for another 49 years under the proposal.
The government has not yet officially announced the reason for these amendments, but the lease terms have already been extended for some resorts to raise money for budget support.
This is the third amendment to the Tourism Act since the beginning of this government. The first amendment was on August 20, 2024 and the second amendment was on November 5, 2024.
