Minister of Tourism and Environment Thoriq Ibrahim has stated that the recent amendments to the Tourism Act will effectively address the issue of delays in opening resorts closed for re-development.
Speaking to PSM News on the amendments, the Minister stated that under the new amendments, resorts can only be closed for re-development for a specified period, subject to approval from the Ministry of Tourism.
The new amendment to the Tourism Act states that an island or land used for tourism purposes can be closed for re-development or any other purpose, only for a specified period of time with the permission of the Ministry of Tourism. The decision can only be implemented after the lease agreement of the island or land has been amended in accordance with the regulations made under the Tourism Act.
If a resort or tourism establishment fails to reopen the facility within the specified period, the Tourism Ministry has the power to take action against the company and terminate the lease agreement. In the event of cancellation of the agreement, the government will not have to pay any compensation to the lessor. The Minister described this as a key measure encouraging the timely reopening of resorts that are closed for redevelopment.
"This amendment aims to address the closure of already built resorts," the Tourism Minister said.
The Minister assured that the regulations to be made under the amendments to the Tourism Act will be formulated within three months, including the regulations for the operation of the Tourism Trust Fund.
The Tourism Trust Fund is designed to facilitate the provision of financial assistance to the tourism sector through a transparent policy, manage such assistance in good faith, develop the resources of the sector and enhance the capacity of those involved in the sector.
The Tourism Minister said the Trust Fund will be funded by local and international sponsorship funds received through tourism activities conducted by the Ministry of Tourism, and funds contributed by tourism operators under social responsibility initiatives. The Fund will also include funds from investments established by the Trust Fund as well as other sources specified in the regulations formulated by the Ministry of Tourism, he said.
According to the Minister, the Trust’s funds will be utilised for programmes aimed at strengthening the tourism industry, along with education and training programmes to enhance the capacity of those working within the tourism sector.
“I would like to note that this Trust Fund will be managed by the Ministry through a fund board and the formulation of regulations for governing the Fund. The Ministry will fulfill these requirement within these 3 months. Regulations need to be established before operations can commence. The regulations for managing the Fund will be included in the tourism regulations,” he said.
The Tourism Minister emphasised that the establishment of the Tourism Trust Fund will play a significant role in supporting the tourism industry and contributing to the social sector.