Parliament Committee passes motion to classify hotels and guesthouses in Maldives

The reform committee of the Maldivian Parliament has decided to pass a motion to categorize guest houses and hotels in the Maldives. The government-sponsored amendment to the tourism act proposes to classify guesthouses and hotels.

The economic chamber of Parliament today passed the government’s proposal to classify guesthouses and hotels in the tourism bill, with the amendment brought by the committee today, the registry of guesthouses and hotels must be converted to comply with the act within one year of its adoption and gazette.

According to the bill, from January 1 next year, tourists will be charged $3 for properties with less than 50 rooms, and larger establishments are considered hotels and will be subjected to a $6 tax. However, the Act will be completed once the ministry of tourism issues in depth guidelines pertaining to this classification. In addition to this change, the current guesthouse registration fee of RF 5000 will be abolished. Multiple changes are expected to take place to allow SMEs to enter this market such a allowing guesthouses to start businesses without a kitchen or reception services.