A bill has been submitted to parliament proposing that the President be granted the power to declare islands and lagoons under the jurisdiction of island councils to be used for tourism purposes.
A bill has been submitted to parliament proposing that the President be granted the power to declare islands and lagoons under the jurisdiction of island councils to be used for tourism purposes.
This amendment to the Tourism Act was proposed by ruling People's National Congress (PNC) MP for Thimarafushi Ahmed Riyaz on behalf of the government.
As per the current Act, it is the councils that have the authority to draft tourism plans and lease for tourism islands and lagoons in their jurisdiction.
The proposed amendment, however, transfers the power to designate islands and lagoons which can be used for tourism to the President.
The second amendment in the proposed bill is that if the lease of an island or lagoon of 50 years is extended by another 49 years within six months of implementation of the amendment, then USD 5 million must be paid upfront. If the lease is extended by 20 years, then USD 2.5 million is to be paid, and if by 25 years, then a payment of USD 3 million is required.
If the extension by 49 years is six months after the implementation of this amendment, then the payment required would increase to USD 10 million upfront.
Previously, the Act stipulated that a fee of USD 100,000 per each extended year would be charged, which could be paid within a period of six months. If the payment period exceeds six months, then the fee is increased to USD 200,000 per year.
A further amendment proposed concerns procedures around redevelopment. This states that a place leased for tourism can be redeveloped only after bringing some changes to the agreement, and in accordance with Tourism Ministry regulations. If the place is not reopened within the determined time, then the ministry holds the authority to void the agreement.
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