On January 2, 2024, 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: 2024/R-2) (the “Regulation”) is issued by MoT pursuant to Section 24(b) of the ‘Maldives Tourism Act’ (Law No:2/99) and repeals the 2023 Regulation on foreign tourist vessels (Regulation No: R-155/2023) (the “2023 Regulation”). The new Regulation came into force on January 2, 2024, and the major change involves the introduction of passenger liner permits for vessels that stay less than 7 days in the Maldives. The 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. Similar to before, 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. The agent is the responsible person for procuring mandatory permits concerning the foreign tourist vessel and payment of applicable fees.
Permits and Licenses
The Regulation carries forward the requirements of obtaining a cruising permit and, where applicable, a charter license. Additionally, the Regulation introduces a new requirement of obtaining a passenger liner permit by foreign tourist vessels carrying over 50 passengers and intending to stay less than 7 days in the Maldives. All fees levied for various permits under the Regulation are to be paid to the Maldivian Inland Revenue Authority (“MIRA”).
Cruising Permit and Fees
All foreign tourist vessels entering into Maldivian waters must obtain a cruising permit from MoT either before their arrival to the Maldives or within 4 working days from receiving inward clearance from the Maldives Customs Service.
The validity period of a cruising permit remains the same at 90 days from the date of inward clearance from the Maldives Customs Service. However, cruising permits can be extended up to 365 days if the foreign tourist vessel meets the following criteria:
- has a valid certificate in accordance with the International Convention for the Safety of Life at Sea (“SOLAS”) or has a valid certificate issued by the International Association of Classification Society (“IACS”); or
- has valid safety certificates issued by the vessel’s country of origin and valid licenses of the captain and crew, and where the captain belongs to another nationality other than the vessel’s country of origin, the license of the captain is endorsed by the country of origin; and
- has received endorsement of the Maldives Ministry of Transport and Civil Aviation in respect of the vessel’s compliance with passengers’ certificates, the captain’s certificate of competency, minimum safe manning certificate, hull and machinery insurance, and insurance related to salvaging and environmental damage.
The rules relating to the fee levied on issuing cruising permits remain unchanged under the new Regulation. For vessels that are of or less than 20 meters in length, no fee is charged to issue the cruising permit. However, vessels which are over 20 meters in length must pay a fee of US$ 1,000.00 to obtain the cruising permit.
The daily fee introduced by the 2023 Regulation is also retained under the new Regulation. This fee is levied on the duration a foreign tourist vessel spends on cruising and docking in Maldivian Waters. Foreign tourist vessels which have obtained a charter license or a passenger liner permit are exempted from this fee.
Vessels that are over 20 meters in length must pay a daily fee of US$ 100.00 on a monthly basis. The Regulation stipulates that the previous month’s fees must be paid before the 10th day of the following month. Vessels that 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, such vessels can receive an extension up to 275 days upon the payment of a fee of US$ 50.00 chargeable on per day extended basis, provided that the following criteria are met:
- has a valid certificate in accordance with SOLAS or IACS; or
- has valid safety certificates issued by the vessel’s country of origin and valid licenses of the captain and crew, and where the captain belongs to another nationality other than the vessel’s country of origin, the license of the captain is endorsed by the country of origin; and
- has received endorsement of the Maldives Ministry of Transport and Civil Aviation in respect of the vessel’s compliance with passengers’ certificates, the captain’s certificate of competency, minimum safe manning certificate, hull and machinery insurance, and insurance related to salvaging and environmental damage.
The new Regulation also retains the same rules for renewing cruising permits. A cruising permit may be renewed upon the expiry of a total of 365 days by paying a renewal fee of US$ 3,500.00 and above-mentioned daily fees. To renew a cruising permit, an application for renewal must 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. The owner’s family is considered to include the owner’s spouse or civil partner, siblings and children. Vessels that have obtained a charter license are not required to pay the daily fees mentioned above.
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 retains the fee rates applicable to the issuance of charter licenses. The 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.
Passenger Liner Permit and Fees
Foreign tourist vessels that intend to stay less than 7 days in the Maldives and carry over 50 passengers, excluding its crew, owner of the vessel, and the owner’s family, are now required to obtain a passenger liner permit from MoT. Passenger liners are subject to a daily fee of US$ 850.00 and are exempt from daily fees and charter license requirements.
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.
If 5 years have elapsed since the imposition of and payment of penalty fine for repeated non-compliance (US$ 6,000.00), any further non-compliance will be treated as the first instance of non-compliance as per the new Regulation.
