Parliament Grants President Authority to Allocate Sites for Tourism Development
Photo: President’s Office
Parliament passed an amendment bill proposed by the government to empower the President to determine islands and lagoons which are to be used for tourism purposes.
The amendment bill to the Tourist Act was submitted by People’s National Congress (PNC) member and parliamentarian for the Thimarafushi constituency Ahmed Riyaz. The parliament passed the amendment bill today with 55 votes; seven legislators voted against the bill.
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One of the amendments passed today includes empowering the President to decide which uninhabited islands and lagoons under the jurisdiction of Island Councils are to be used for tourism development. As it is, the power currently lies with the local island councils.
In addition to this, the bill includes amendments relating to the extension of the lease period of uninhabited islands, lagoons and lands for tourism purposes, regulations for the closure of such places for redevelopment and the establishment of the tourism fund. The bill also empowers the government to cancel the agreement and take possession of such sites without any compensation if the contractor fails to open the location within the redevelopment period.
Changes have been made with this amendment bill to the fees the developers had to pay previously for a redevelopment extension.
As such, the developer has to pay an extension fee of USD 5 million if they apply to extend an island leased for 50 years by an additional 49 years. Amendments have been made to include extensions by 20 years costing USD 2.5 million and an extension of 25 years costing USD 3 million, all of which have to be paid at once. These fees are applicable if the request for an extension is made within the first six months after the ratified act comes into effect. After the initial six months pass, requests for lease extensions by 49 years are allowed with an extension fee of USD 10 million, which has to be made in a singular payment.
Currently, the law requires an extension fee of USD 200,000 for each year by which the lease is extended. However, when this amendment was initially introduced, within the first six months, the extension fee was USD 100,000.
Another thing mentioned in the bill is that the government taking away all the powers to promote tourism in the Maldives. In the future, tourism service providers can be promoted only after obtaining permission from the government. No such permission was required in the past. The opposition party Maldives Democratic Party (MDP) has flagged the concerns of the tourism sector over the amendment. According to MDP, resorts, guest houses and tourist hotels will have to pay additional fees to the government for promotion.
Opposition MDP had proposed to change the clause in the bill on promotion, but the amendment was not passed in the parliament.
After today’s proceedings, the Parliament went on leave for the last 10 days of Ramadan. It was announced that parliament will meet on April 7 after the Eid holidays and completion of the six Sunnah fasts. Government offices will also remain closed for 15 days starting next week.
