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Hankede being developed for integrated tourism. Photo/Fund Management

Integrated resorts to get 20-year operating licence

According to the regulations, each business must obtain the necessary permits from the government agencies.

9 October 2023

By Aishath Fareeha Abdulla

Government on Sunday gazetted a new set of regulations governing the operation if integrated tourist resorts.

According to the regulations issued by the tourism ministry, separate businesses in an integrated resort must be operated after obtaining permission from the relevant government agencies.

The regulations state that a licence can be issued for 20 years to operate an integrated tourist resort, but if the remaining term of the lease agreement between the developer and the government is less than that, the permission will be granted for the remaining term of the lease.

In addition, businesses established to provide additional services to individual tourist resorts, hotels and similar establishments developed in an integrated tourist resort will be issued operating permits after issuance of permits to operate the integrated tourist resort under the regulations.

The regulations also define the businesses that can be operated as separate businesses in an integrated tourist resort.

The businesses that can be run in such a resort are:

  • Tourist resort

  • Resort hotel

  • Hotel

  • Yacht marina

  • Dive centre

  • Food services for tourists

  • Retail businesses targeting tourists

  • Other services targeted at tourists

According to the regulations, each of these businesses must obtain the necessary permits from the government agencies.

  • The developer will have to classify the land and notify the tourism ministry to run these businesses

  • An integrated tourist resort can operate on the land classified for the business

If businesses established to provide additional services to specific resorts, hotels or similar establishments developed in the integrated tourist resort are required to be issued operating permits under the Tourism Act, the duration of the permits will be determined under the regulations for that type of business.

  • The integrated tourist resort operating permit shall be applied for by the developer or the lessee who has all the rights granted under the lease agreement between the developer and the government

  • Permits to operate integrated tourist resorts shall be issued after ensuring that the prescribed standards are met; the basic services, the services included in the lease agreement, the buildings are up to the specified standards

  • The permit shall be inspected prior to issuance and any corrections required shall be given a period of not more than three months

  • If basic services are not provided, the permit will be revoked; the ministry of tourism will send a notice before revoking the permit. If there is anything that needs to be corrected, you will be given no less than three months to do so

  • If the resort is developed under the integrated tourist resort model in a lagoon or uninhabited island, the building will be allowed on 50% of the land area

  • Only 85% of the land allocated for development as a separate resort hotel can be built on

If an integrated tourist resort is permitted to operate in a residential island, the public businesses set up to serve tourists (restaurants, dive centres, etc.) must be developed and operated for use by tourists as well as the public and other tourists visiting the island. 

  • Integrated tourist resorts in residential areas will not be allowed to develop and operate tourist resorts and tourist guesthouses

The regulations also describe how a place that is currently operating as a regular resort can be converted into an integrated tourist resort. 

  • Resorts, yacht marinas, hotels or resorts in operation when the 10th amendment to the Tourism Act came into force can be converted into integrated tourist resorts

  • Such premises can be converted into an integrated tourist resort by paying a lump sum of USD 1 million under Article 16(4)(c) of the Tourism Act if they are in operation

  • If the property is developed but not operational, USD 100,000 before signing the agreement and the remaining USD 900,000 in four instalments within three years

  • If the place requested to be converted into an integrated tourist resort is an operating place, after paying all statutory dues

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