Tourism Trust Fund regulations established, published

Regulations for the Tourism Trust Fund have been instated to provide financial assistance to the tourism sector and to ensure the judicious and accountable management of these funds.

In an official announcement made on Monday, the Ministry of Tourism declared that the establishment of a Tourism Trust Fund constitutes a significant governmental initiative aimed at upholding the quality of the Maldivian tourism industry and facilitating its sustainable benefits.

The primary mandate of the fund is to furnish financial assistance to the tourism sector and to institute a system that guarantees the responsible and transparent management of these funds. Furthermore, this involves delineating the appropriate allocation of government-received funds and ensuring that all financial transactions adhere strictly to prevailing legal statutes and regulations.

The capital of the Tourism Trust Fund comprises the following:

• Sponsorships and other financial contributions received from both domestic and international sources for tourism-related activities conducted by the Ministry of Tourism.

• Corporate Social Responsibility (CSR) contributions from tourism operators to the fund.

• Proceeds derived from investments undertaken by the Fund.

• Training charges stipulated in publicly announced bids.

According to the regulations established by the Ministry, the fund shall be administered by the Ministry in accordance with the fund's trust statement and the guidelines set forth by the committee overseeing the trust fund. The regulations further stipulate that the fund must operate independently of other funds, in compliance with the State Finance Act and all other applicable laws and regulations.

The Ministry is also mandated to establish an executive committee for the Tourism Trust Fund under the provisions of the Tourism Act. This committee shall comprise seven members appointed by the Minister. These seven members will represent the following governmental agencies:

• The President’s Office

• Ministry of Tourism and Environment

• Ministry of Finance and Planning

• Ministry of Economic Development & Trade

• Attorney General’s Office

• Ministry of National Planning, Housing and Infrastructure

• Maldives Inland Revenue Authority (MIRA)

Each of these seven agencies shall designate one member. The Minister of Tourism will assume the chairmanship of the Committee, and a secretariat will be established on behalf of the Ministry to handle the Committee's administrative functions.

The members of this committee shall be appointed for a tenure of five years.

The funds deposited in this trust fund are to be expended on:

• Activities aimed at the development of the tourism industry.

• Investments in the enhancement of tourism facilities.

• The implementation of education and training programs designed to bolster the capacity of individuals engaged in the tourism sector.

• The conduct of activities yielding general social benefit.

• The utilization of the Tourism Trust Fund must align with the Fund Statement.

Concurrently, the annual report and financial statements of the fund shall be prepared at the conclusion of each fiscal year and submitted to the President, Parliament, the Auditor General, and the Ministry of Finance within three months of the year's end.

The government allocates substantial financial resources to tourism promotion activities.

Visit Maldives Corporation Limited, formerly known as the Maldives Marketing and PR Corporation (MMPRC), has undertaken numerous initiatives to date. The corporation is currently dedicating a significant portion of its budget to the sponsorship of Premier League champions Liverpool FC. This campaign is scheduled to run from March 13 of the current year until May 31, 2028. The MMPRC has allocated a budget of MVR 20.6 million for this purpose in the current year.

However, the corporation has faced accusations of involvement in the largest corruption scandal in Maldivian history. The Anti-Corruption Commission (ACC) has reported that this alleged corruption, purportedly orchestrated by former President Abdulla Yameen Abdul Gayoom, under the leadership of then-Vice President Ahmed Adeeb, and involving senior government officials and high-ranking members of the then-ruling party PPM, resulted in a loss of MVR 1.4 billion to the state.

Nevertheless, four years subsequent to these allegations, the corporation announced a profit of MVR 27.5 million in the previous year.