On September 14, 2023, the Ministry of Tourism (“MoT”) introduced a new regulation governing the cruising and docking of foreign tourist vessels in Maldivian waters. The ‘Regulation on the Cruising and Docking of Foreign Tourist Vessels’ (Regulation No: R-155/2023) (the “Regulation”) is issued by MoT pursuant to Section 24(b) of the ‘Maldives Tourism Act’ (Law No:2/99) and repeals the 2010 Regulation on foreign tourist vessels (the “2010 Regulation”). The new Regulation came into force on September 14 2023 and governs similar areas on the entry of foreign tourist vessels with some modifications. The new rules under the Regulation will be applicable to those foreign tourist vessels that have already obtained the relevant permits upon the expiry of the existing permits.
Entry Requirement
The new Regulation maintains the same entry requirement as the former one, which requires foreign tourist vessels to appoint an agent in the Maldives before entering Maldivian waters.The 2010 Regulation provided an exception for foreign tourist vessels entering the Maldives under emergency conditions, exempting them from this entry requirement. However, a similar exclusion is not prescribed in the new rules, indicating that emergency circumstances where a foreign tourist vessel is required to enter Maldivian waters is no longer governed under this Regulation and is outside the purview of MoT.
Agency of Foreign Tourist Vessels
As with the 2010 Regulation, the agency of foreign tourist vessels can be managed by those persons who are permitted by the Maldives Customs Service within the validity period of their permits. Similarly, the new Regulation also holds the agent of a foreign tourist vessel as the responsible person for procuring mandatory permits and payment of applicable fees.
Permits and Licenses
The Regulation also carries forward with modifications the requirements of obtaining a cruising permit and, where applicable, a charter license.
Cruising Permit and Fees
Under the Regulation the statutory time limit to obtain a cruising permit remains unchanged. All foreign tourist vessels entering into Maldivian waters must obtain a cruising permit from MoT within 84 hours of the vessel receiving inward clearance from the Maldives Customs Service. The Regulation prescribes this time limit to be counted excluding weekends and public holidays.
In contrast to the 2010 Regulation, the new Regulation now levies a fee for the issuance of cruising permits only on those foreign tourist vessels which are over 20 meters in length and that intend to stay in the Maldives for a period beyond 7 days from the date of their arrival. Foreign tourist vessels meeting this classification are required to pay a fee of US$ 1,000.00 for the issuance of a cruising permit. Additionally, the validity period of a cruising permit is now shortened to 90 days from the date of inward clearance from the Maldives Customs Service, and a foreign tourist vessel that is registered at the International Maritime Organization (the “IMO”), can now extend its permit up to 365 days from the date of such inward clearance.
The Regulation also introduces a fee on the duration a foreign tourist vessel spends on cruising and docking in Maldivian Waters. This fee is levied on all foreign tourist vessels except those that have obtained a charter license. Accordingly, a daily fee of US$ 100.00 will be levied on foreign tourist vessels that are over 20 meters in length. Vessels which are of and below this size classification can cruise and dock in Maldivian waters without paying a fee for up to 90 days. Upon expiry of 90 days, a vessel which is of or less than 20 meters in length and registered with the IMO can receive an extension up to 275 days upon the payment of a fee of US$ 50.00 chargeable on a daily basis of such extension.
A cruising permit may be extended upon the expiry of a total of 365 days upon the payment of a renewal fee of US$ 3,500.00 and above-mentioned fees accrued for the duration already expended in Maldivian waters.
To extend a cruising permit, an application for extension is to be filed with MoT in the prescribed form within a period of 7 working days prior to the expiration of the existing permit.
Charter License and Fees
The Regulation also maintains the requirement of obtaining a charter license if a foreign tourist vessel intends to take aboard passengers other than its crew, owner of the vessel, and the owner’s family. Unlike the 2010 Regulation, the new Regulation distinguishes based on the owner of the vessel and the owner’s family members. Under the new Regulation, the owner’s family is considered to include the owner’s spouse or civil partner, siblings and children.
After the expiry of a charter license, if a foreign tourist vessel intends to cruise and dock with passengers on board, the Regulation maintains the requirement to seek a renewal of the license.
The Regulation also modifies the fees applicable to the issuance of charter licenses. The new applicable fees are as follows:
- Vessels which are of 20 meters in length or less are subject to a fee of US$ 100.00 per day.
- Vessels between 21 meters and 35 meters in length are subject to a fee of US$ 250.00 per day.
- Vessels between 36 meters and 45 meters in length are subject to a fee of US$ 400.00 per day.
- Vessels between 46 meters and 75 meters in length are subject to a fee of US$ 550.00 per day.
- Vessels between 76 meters and 100 meters in length are subject to a fee of US$ 700.00 per day.
- Cruise ships are subject to a fee of US$ 850.00 per day.
All fees levied under the Regulation are to be paid to the Maldives Inland Revenue Authority.
Penalties for Non-Compliance
For non-compliance of the prescribed rules under the Regulation, MoT is empowered to impose a fine on the agent responsible for the vessel as below:
- In the first instance, a fine of US$ 1,000.00.
- In the second instance, a fine of US$ 2,000.00.
- For repeated non-compliance, a fine of US$ 6,000.00 for every instance of non-compliance.
