Amendment to allow SOEs allocation of islands for resort development

The government has proposed an amendment to the Tourism Act that would allow state-owned enterprises (SOEs) to be allocated islands, land, or lagoons for resort development.  

The amendment, moved by PNC MP Mohamed Sinaan on behalf of the government, seeks to add a new clause to Article 5 of the Act. The clause would enable SOEs to operate resorts or integrated tourist resorts under specific conditions.  

Currently, Article 5 allows leases to individuals or entities through offers announced by the Tourism Ministry, project-based applications, or cross-subsidy allocations for important government projects. The proposed addition would extend this framework to SOEs.  

Under the amendment:  

• The Cabinet will decide whether to allocate property to an SOE.  

• The Cabinet must approve which company receives the allocation.  

• The allocation will be formalized through an agreement with the government.  

• Rights under the agreement cannot be transferred, leased, or subleased.  

• The company must pay an acquisition fee to the government.  

The amendment also permits SOEs to operate yacht ports. It defines an SOE as a company in which the government holds at least 45 percent of shares.  

Officials say the purpose is to cut costs and expand SOE participation in tourism. The changes will take effect once the bill is passed and ratified by Parliament.  

The Tourism Act has been amended several times during the 20th Parliament, most recently to empower the President and local councils to allocate islands and lagoons for tourism development.