Tracking Key Provisions: Recent Amendments to the Regulation Governing Foreign Tourist Vessels in Maldives’ Waters

October 7, 2024

Effective Date: 25 September 2024

The Maldives has recently enacted significant amendments to the regulations governing foreign tourist vessels in Maldives waters. These changes aim to enhance safety standards, streamline processes, and prioritize local ownership. Below, we outline the key updates introduced by the First Amendment to this regulation (Regulation number: 2024/R-2).

Key Changes and Requirements

Ownership of Tourist Vessels & Agents

  1. With this amendment, it is now mandatory that agents representing tourist vessels must only be Maldivian shareholders. If the shareholder of the agent is a company, partnership, or sole proprietorship, all members of that entity must also be Maldivian. This amendment reinforces local ownership and participation in the tourism sector.
  2. Excursions for cruise passengers now can only be conducted by passengers or crew members of the cruise liners themselves, or by tour guides registered under Regulation No. 2012/R-44.

Licensing Requirements for Vessels

  1. Foreign tourist vessels must obtain a permit from the Ministry of Tourism (“Ministry”) either before arriving in the Maldives or within four days of receiving inward clearance from Maldives Customs. Vessels are required to apply for the Cruising Permit from the Ministry of Tourism along with the Tax Agent’s tax clearance.
  2. The recent amendment introduces a new requirement for a captain’s declaration detailing the number of crew members and passengers.
  1. For Vessels Over 100 Gross Tonnage applying for a Cruising permit from the Ministry of Tourism must also submit the following documents:
    • Valid safety documents for the vessel
    • Captain’s competency certificate
    • Minimum safe manning certificate
    • Insurance policy covering passenger safety, hull and machinery, and environmental damage
    • Approval from the Ministry of Transport and Civil Aviation confirming the vessel’s compliance with requirements
  1. For Vessels Below 100 Gross Tonnage are required to provide:
    • An insurance policy covering similar areas as noted above
    • Approval from the Ministry of Transport and Civil Aviation
    1. Additionally, one of the following must be submitted by each vessel irrespective of their Gross Tonnage:
      • Safety of Life at Sea (SOLAS) certificate
      • Certificate from the International Association of Classification Societies (IACS)
      • A statement from the Ministry of Transport and Civil Aviation confirming the vessel’s classification certificate.
      • Valid license of the Captain and Crew which has been endorsed by their nation.

    Fees and Duration for Cruising Permit

    1. A fee of $1,000 is now applicable for cruising permits for vessels of 100 gross tonnage or more. Vessels below this threshold are exempt from the fee.
    2. Cruising Permits for vessels will initially be granted for 90 days but can be extended up to 275 days if all safety and compliance requirements are met.
    3. Extension fees will be charged at $100 per day for vessels of 100 gross tonnage or more and $50 per day for vessels below this threshold.

    Passenger Licensing

    1. If a vessel wishes to add passengers beyond crew members during the permit period, it must obtain a passenger license in the agent’s name. An additional fee of $5 per passenger is required, and vessels with a valid passenger license are exempt from Cruising Permit extension fees during that license period.

    Repeal of Previous Provisions

    1. Section 10, which previously required foreign vessels staying in the Maldives for less than seven days to obtain a passenger permit at a cost of $850 per day, has been repealed. Additionally, Section 17 (c) which defined “Family”, has also been removed.

    Definitions Update

    1. The amendment clarifies several key definitions, including the replacement of previous terms. “Cruise Liner” now refers to a foreign vessel carrying more than 50 passengers, replacing the former term “Passenger Liner.” Additionally, “Passenger License” has replaced the previous “Charter License” and is defined as the license required for vessels carrying passengers beyond their crew.
    2. Furthermore, three new definitions have been added to the regulation. “Crews” refers to individuals who operate and maintain the vessel, as stated in the Cruising and Harbouring application form. “Passengers” are defined as individuals other than crew members who travel on the vessel. Lastly, “Show Excursion” is defined as trips conducted for travel activities involving passengers.

    Revised Fee Structure for Passenger Licenses

    The following daily fees for passenger licenses have been established:

    Vessel Size (Meters)Fee per day (USD)
    20 or less$100
    Over 20 – up to 35$250
    Over 35 – up to 45$400
    Over 45 – up to 75$550
    Over 75 – up to 100$650
    Over 100 (not cruise liners)$750
    Cruise liners over 100$850

    Conclusion

    These amendments reflect Maldives’ commitment to ensuring that its tourism sector operates safely, efficiently, and in a manner that supports local stakeholders. For operators and agents of foreign tourist vessels, understanding and complying with these updated regulations is essential for smooth operations in Maldivian waters.

    Would you like to speak to one of our tax advisors? Just submit your contact details and we will be in touch shortly. Contact Us