Maldives Ratifies Major Tourism Act Amendment: What’s New for Resorts and Tour Operators

The Maldives has ratified the 16th Amendment to the Tourism Act, bringing several major changes that affect resorts, operators, guesthouses, councils and foreign tour agencies. The law was officially approved by the President and published on December 6, 2025.

What’s New

·       The Amendment expands what counts as regulated tourism services: water-sports and dive-centers are now explicitly listed, while resort hotels have been removed from the section that defines tourism services — though they remain defined elsewhere in the law.

·       A new category, Tourism Training Resorts, is introduced. These will function like regular resorts but also include structured training facilities. Regulations for their lease, development and operation will be announced soon.

·       The “reduced lease-extension fee” window for resort leases has reopened: from 6 December 2025 to 5 June 2026 — a limited six-month window for lease renewals under favorable terms.

·       For resorts under construction, the rules for extending the construction period have been clarified. Now, extensions may come with either Payments to a Tourism Trust Fund or contributions to designated public projects (as part of CSR obligations). Any extension must follow the updated procedures under the law.

·       Foreign tour operators selling or facilitating Maldives tourism packages must now hold a valid Foreign Tour Operator Licence and work through a locally licensed operator under an affiliation agreement.

·       Tourism developments on inhabited islands or city-areas are now restricted to guesthouses or hotels — full-scale resort developments in these zones are no longer allowed.

·       Revenue from guesthouses or hotels on inhabited islands must now be directed to the relevant Island or City Council, strengthening the link between tourism income and local governance.

·       The door is now open for state-owned enterprises (SOEs) to lease islands, land or lagoons for resort or integrated-resort development — provided they meet financial and professional capacity requirements.

·       The new law raises the stakes for non-compliance. Operating tourism services without a valid license can attract fines up to MVR 1,000,000, with a daily fine of MVR 100,000 for continuing violations.

What’s Next

The amendment provides a legal framework, but detailed regulations and guidelines — such as fee formulas, training-resort standards, and CSR obligations — are expected within 90 days from its enactment. Stakeholders across resorts, agencies and councils will need to review their operations and licensing arrangements carefully to ensure compliance.

Observers say the updates aim to bring greater clarity and structure to tourism development while offering new opportunities — particularly for training resorts and SOEs — and reinforcing oversight and local community benefit. The success of the changes, however, will depend on how the new regulations are implemented across the sector.