Tourism Permit Not Required Prior to Signing Management Agreements

The Ministry of Tourism, on 3 August 2017, published the 3rd Amendment to Regulation Number 2010/R-14 (Grant of Rights – land and islands leased for tourism purposes) which allows for the signing of a management agreement prior to receiving the relevant permit from the Ministry.

The newly introduced Section 39 of the Regulation allows registration of a management agreement which was signed without a permit issued under Section 35 of the Regulation. This registration is contingent on the applicant fulfilling the requirements under Section 39.

An applicant under Section 39 will be required to enter into an agreement with the Ministry, taking responsibility for all matters relating to the management agreement for the period that transpired between the signing of the management agreement and its registration with the Ministry.  They are also required to pay a fine of USD 4,000 to the state. Finally, the management agreement must conform with the requirements of Section 36, 37 and 38 of the Regulation. If the requirements under the aforementioned 3 sections were not fulfilled at the time of signing of the management agreement, the applicant must ensure that the management agreement meets those standards when submitting an application under Section 39.