Proposed Bill Grants President Authority Over Tourism Islands and Implements New Lease Payment Structure

A new bill has been introduced in Parliament proposing that the President be granted the authority to designate islands and lagoons under the jurisdiction of island councils for tourism development.

This change to the Tourism Act was put forward by Ahmed Riyaz, a Member of Parliament for the ruling People’s National Congress (PNC), representing the government.

Under the current law, island councils are responsible for creating tourism plans and managing the leasing of islands and lagoons for tourism purposes within their territories. However, the proposed amendment seeks to shift this power to the President, who would gain the authority to designate which islands and lagoons can be used for tourism.

The bill also introduces new conditions for extending leases. Specifically, if an island or lagoon lease of 50 years is extended for an additional 49 years within six months of the amendment's implementation, an upfront payment of USD 5 million will be required. If the lease is extended by 20 years, the payment will be USD 2.5 million, and if extended by 25 years, USD 3 million will be required. However, if the 49-year extension occurs more than six months after the amendment's implementation, the required upfront payment will rise to USD 10 million.

Previously, the Act stipulated a fee of USD 100,000 for each year of lease extension, which could be paid within a six-month period. If payment extended beyond this period, the fee would increase to USD 200,000 per year.

In addition, the bill proposes changes to the redevelopment process. Any leased location intended for tourism development can only be redeveloped after modifying the lease agreement and complying with regulations set by the Ministry of Tourism. If the property is not reopened within the agreed time frame, the Ministry will have the authority to annul the lease agreement.