Majlis approves amendment allowing state-owned companies to acquire resort projects
The bill enables leasing of islands and lagoons to state-owned companies with at least 45 percent government shareholding for tourism development
A resort island in the Maldives
The People’s Majlis has passed an amendment enabling the lease or assignment of islands, land and lagoons to companies with government shares for the development of tourist resorts or integrated tourist resorts.
The bill was submitted by MP for North Hithadhoo constituency Mohamed Sinan on behalf of the government.
The bill amends the Maldives Tourism Act and was approved with the unanimous support of 64 lawmakers after review by the Economic Committee.
Introducing the bill, Sinan said the government sought to establish a framework for leasing properties to state-owned companies for the development of tourist resorts and tourism training resorts, as well as to codify the principles governing the leasing and operation of such sites.
He added that the bill also aims to include regulations on extending development periods for leased resort sites and on the principles used to describe lagoon areas of islands leased for tourism purposes.
Under the amendment, an island or lagoon may be assigned to a state-owned company for developing a tourist resort or integrated tourism resort, subject to approval by the Cabinet of Ministers.
The bill requires that any company receiving such a property possess the financial and technical capacity needed for resort development.
Assignments must be made through an agreement between the government and the state-owned company, and the company assuming responsibility for the site must pay the acquisition fee to the state.
The ministry may also impose conditions requiring contributions to the Tourism Trust Fund as part of Corporate Social Responsibility obligations, or mandate expenditures on a development project specified by the ministry.
Only companies in which the government holds at least 45 percent of shares may receive islands, lagoons, or land for resort development.
After its review, the Economic Committee added an amendment prohibiting the government’s share in such companies from falling below 45 percent during the term of the agreement.
