Parliament has passed an amendment to the Tourism Act, creating a new Tourism Industry Trust Fund to improve financial oversight in the sector. The bill was approved with 55 votes in favour and seven against after a review by the Parliamentary Committee on Economic Affairs.

Proposed by Thimarafushi MP Ahmed Riyaz from the ruling People’s National Congress (PNC), the amendment replaces the existing trust fund. Although the opposition Maldivian Democratic Party (MDP) suggested changes, they were not approved.

The new trust fund aims to better manage financial resources and support tourism growth. Existing funds will be transferred for a smooth transition. The amendment also allows the president to designate uninhabited islands and lagoons for tourism, while island councils will continue managing inhabited areas.

Tourist businesses undergoing redevelopment must follow stricter lease regulations or risk penalties, including losing their leases. The trust fund will be funded by sponsorships, corporate social responsibility contributions, and investment returns. A management committee, including representatives from key ministries and industry groups, will oversee its operations.