The Ministry of Tourism has gazetted new regulations governing the lease of islands, land and lagoons to State-Owned Enterprises (SOEs) for the development and operation of tourist resorts and integrated tourist resorts.

Under the regulations, leases can only be granted to companies in which the Government holds a minimum 45 per cent stake. The Cabinet must approve both the land proposed for development and the SOE selected to undertake the project.

Companies seeking tourism leases must demonstrate adequate financial and technical capacity, pay the prescribed lease acquisition fee and fulfil corporate social responsibility (CSR) obligations.

The regulations allow the Ministry to require a CSR contribution of USD 500,000 to the Tourism Trust Fund or an equivalent investment in approved projects, including community centres, sports facilities, housing and other national development initiatives.

The new framework also stipulates that the Government's shareholding in an SOE granted a tourism lease cannot be reduced below 45 per cent during the lease period.