Regulations Introduced to Strengthen Governance of Maldives’ Tourism Trust Fund

A clear regulatory framework has been introduced for the Maldives’ Tourism Trust Fund, providing renewed financial direction and accountability for the development of the country’s most vital economic sector, tourism. The Ministry of Tourism and Environment recently announced the newly published regulations, outlining how the fund’s capital may be allocated and managed to support long-term sustainable growth and broader public benefit.

The Tourism Trust Fund was established earlier this year under an amendment to the Public Finance Act, replacing the former Tourism Industry Trust Fund. The amendment, ratified by President Dr Mohamed Muizzu on 19 March 2025, officially transferred the assets and responsibilities from the dissolved fund to the new entity. The restructuring reflects the government’s strategy to streamline fiscal management within the tourism sector while ensuring greater transparency and measurable outcomes.

The newly issued regulations, published in the Government Gazette, specify both the objectives and the eligible areas of expenditure under the fund. According to the Ministry, the overarching goal is to provide structured financial support for initiatives that drive the growth and development of the tourism industry, while ensuring that the benefits of such progress reach the Maldivian people in a fair, transparent, and accountable manner.

As defined by the regulation, the Tourism Trust Fund may be used for a range of purposes, including:

• Development initiatives within the tourism industry

• Investments in tourism-related resources

• Education and training programs aimed at building human resource capacity in tourism

• Social benefit programs that link directly to tourism

• Other expenses that align with the officially approved Fund Statement

The regulations also outline how the fund is to be capitalized. Funding sources are grouped into four categories:

1. Sponsorship funds and other financial contributions received for tourism-related activities from both local and international sources

2. Corporate Social Responsibility (CSR) contributions mandated under the Maldives Tourism Act, to be provided by registered tourism operators

3. Income or returns generated through investments made by the fund

4. Funds specifically allocated for training programs announced under public tenders

In terms of governance, the regulation entrusts the Ministry of Tourism with the management of the fund, operating under strict adherence to the official Trust Statement and the decisions of the Fund Management Committee. To oversee these operations, the regulation mandates the formation of a seven-member Special Oversight Committee, chaired by the Minister of Tourism and composed of representatives from key government agencies. These include:

• The President’s Office

• Ministry of Tourism and Environment

• Ministry of Finance and Planning

• Ministry of Economic Development and Trade

• The Attorney General’s Office

• Ministry of Construction, Housing and Infrastructure

• Maldives Inland Revenue Authority (MIRA)

This multi-agency approach aims to ensure cross-sectoral alignment, financial discipline, and transparent decision-making regarding how tourism-related funds are allocated and spent.

To further enforce accountability, the Ministry is required to submit an annual report along with audited financial statements to the President, Parliament, Ministry of Finance, and the Auditor General’s Office within three months of the conclusion of the financial year. The Auditor General is then obligated to audit the submissions and report to Parliament within two months of receipt.

These developments reflect a broader national strategy to enhance institutional accountability and promote investor confidence in the Maldives’ tourism sector. With tourism directly contributing over 28% to the national GDP and more than 60% to foreign exchange earnings, this regulatory update marks a major step in ensuring the sustainability and transparency of the nation’s most valuable economic asset.

By introducing comprehensive oversight and a structured financial framework, the Maldives is reinforcing its commitment to maintaining a world-class tourism environment that not only attracts global visitors but also secures long-term socio-economic benefits for the Maldivian people.