The Parliament has approved an amendment bill to the Tourism Act, introducing a new Tourism Industry Trust Fund to replace the existing Tourism Industry Trust Fund governed under the Public Accounts Act. This change, according to the government, is anticipated to elevate governance and financial oversight within the tourism sector.
The bill, receiving 55 votes in favour against seven objections, passed during Wednesday’s parliamentary sitting after undergoing a rigorous review by the Parliamentary Committee on Economic Affairs. Ahmed Riyaz, representing Thimarafushi from the ruling People's National Congress (PNC), tabled the amendment, which was later debated and shaped into its final form. The opposition Maldivian Democratic Party (MDP) proposed amendments to the bill; however, these failed to gain parliamentary approval, paving the way for consensus on the new framework.
Central to the legislation is the establishment of the trust fund, designed to provide financial support to the sector through carefully managed resources. By combining operational transparency with investments aimed at expanding tourism capacity, according to the bill, the fund seeks to serve as a cornerstone for sustainable growth. Existing funds currently held within the trust fund under the Public Accounts Act will transition into the new framework, allowing continuity and immediate operational readiness, it said.
The amendment also introduces measures that redefine the development process for tourism projects. It empowers the president to designate uninhabited islands and lagoons for tourism, ensuring such decisions align with broader developmental goals. Island councils, however, retain authority over inhabited regions, facilitating localised governance within a unified national strategy.
Further provisions address practical challenges facing the sector. Tourist establishments undergoing redevelopment will be subject to stringent lease agreement regulations set by the Ministry of Tourism and Environment, according to the amendment. Establishments that fail to comply within designated timeframes risk penalties, including the cancellation of leases without compensation.
As outlined in the amendments, contributions to the fund will include sponsorships, corporate social responsibility initiatives by tourism operators, and returns from investments directed into sectoral growth. A trust fund management committee will oversee operations, composed of representatives from the Ministry of Tourism, the Ministry of Finance, and registered associations. Comprehensive regulations will define the committee’s composition and procedures, according to the bill.