First Amendment to the Tourism Boundary Regulation

The First Amendment to the Tourism Boundary Regulation was gazetted on 16 November 2023 permitting lagoon boundary extensions for lagoons leased for tourism purposes and providing exemptions for the establishment of the no development zone which was previously mandated under the Tourism Boundary Regulation.

Tourist establishments

First Amendment streamlined the definition provisions of the Tourism Boundary Regulation (the “Regulation”) ensuring the applicability of the Regulation to integrated tourist resorts, resort hotels, hotels and yacht marinas (collectively referred to as the “Tourist Establishments”). Earlier, the Regulation contained mismatches in listing the Tourist Establishments. Notably Guesthouses have now been removed from the ambit of the Regulation.

Boundary extension for lagoons

The Regulation allows the extension of demarcated lagoon boundaries for lagoons leased for tourism purposes with an additional 500m from the current lagoon boundary (the “Additional Extension”).

A brief on the determination of the lagoon boundary for islands is available in our news update.

Boundary Extension Fee for lagoons

A fee of USD 100,000 is applicable for the Additional Extension and the new boundary area must be included in the Lease Agreement of the lagoon via an addendum.

Exemptions to the No Development Zone

The Regulation provides that a No Development Zone of 50m will be maintained as a buffer area for each island from the inward area of the outer boundary of the island.

The Regulation does not permit the development of any structures or undertake any reclamations in the no-development zone.

However, the First Amendment grants the Ministry of Tourism discretion to exempt the establishment of the No Development Zone. The exemption can be applied in the following situations:

  1. Following considerations of the geography of the lagoon;
  2. For the development of protection measures for the Tourist Establishment from climate issues;
  3. Where an adjacent area is leased for any purpose, no objection has been granted by the lessee of the adjacent area.

Effective Date

The First Amendment is effective from 16 November 2023.