The Ministry of Tourism and Environment has defined how the funds from the Tourism Trust Fund may be utilised, under new regulations published in the Government Gazette.
The Tourism Trust Fund was established following the dissolution of the former Tourism Industry Trust Fund, under an amendment to the Public Finance Act. The amendment, ratified by President Dr Mohamed Muizzu on 19 March this year, transferred the assets of the previous fund to the newly established Tourism Trust Fund.
The Tourism Ministry said the main objective of the fund is to facilitate financial assistance for the development of the tourism sector and to provide sustainable benefits to the Maldivian people in a transparent and accountable manner.
The Ministry said the fund is intended to support the development of the tourism sector through the dutiful and responsible utilisation of resources received by the fund, both domestically and internationally.
The regulations also describe the responsibilities of the Tourism Trust Fund, and how the funds deposited in the trust fund may be utilised. The permitted areas of expenditure from the fund are as follows:
• Development activities within the tourism industry
• Investment in tourism-related resources
• Education and training programmes to enhance the human resource capacity in the tourism sector
• Social benefit initiatives
• Expenditure aligned with the official fund statement
According to the regulations, the capital of the Tourism Trust Fund is categorised into four components. These include sponsorship funds and other financial contributions received both domestically and internationally for tourism-related activities conducted by the Ministry of Tourism, Corporate Social Responsibility (CSR) contributions to the fund by tourism operators as mandated under the Tourism Act, returns from investments made by the fund, and funds allocated for training under publicly announced tenders.
According to the regulations, the Ministry of Tourism is responsible for managing the Tourism Trust Fund in line with the Trust Statement of the Fund and as determined by the Fund Management Committee. The regulations also require the establishment of a seven-member special committee to oversee the fund. The regulations state that the Minister is required to form the committee with priority given to representation from specific government sectors. These include:
• The President’s Office
• Ministry of Tourism and Environment
• Ministry of Finance and Planning
• Ministry of Economic Development and Trade
• The Attorney General’s Office
• Ministry of Construction, Housing and Infrastructure
• Maldives Inland Revenue Authority (MIRA)
According to the regulations, the Ministry of Tourism must submit its annual report and financial statements to the President, the Parliament, the Ministry of Finance, and the Auditor General's Office within three months of the end of the financial year. The Auditor General must audit the reports and send the report to the Parliament within two months of receiving the reports.