A dedicated regulation governing the lease, allocation, and fee collection for sea, reef, and lagoon zones within the jurisdiction of the GA. Dhaandhoo Council has officially come into effect following its publication in the Government Gazette.
According to the Dhaandhoo Council, the regulation was formulated under the authority granted by the Decentralization Act to ensure the sustainable utilization of natural resources within 700 meters of the island's reef crest, while boosting local council revenue and expanding employment opportunities.
Under the new regulations, diving within dive points under Dhaandhoo’s jurisdiction requires prior registration with the council. The Dhaandhoo Council has set a monthly fee of USD 100 for registered resorts, safaris, and guesthouses, while entities providing council-approved Corporate Social Responsibility (CSR) contributions will be charged USD 50 per month. Unregistered parties will incur a daily fee of USD 50 per diver. However, the council noted that local resident divers, official or educational delegations, and council-run training programs are exempt from these fees.
Regarding the lease of lagoon plots for industrial, economic, and mariculture ventures, the council has designated minimum rates: MVR 0.25 per square foot per month for grouper, lobster, and sea cucumber farming (with a rent-free grace period of up to six months), and MVR 0.50 per square foot per month for seaweed farming. For tourism commercial ventures such as guesthouses, tourist hotels, and yacht marinas, rates are set at USD 2.00 per square meter per month for non-residents and USD 0.75 for local residents. Industrial facilities and boatyards will be leased at a minimum of MVR 1.50 per square foot per month.
Furthermore, the Dhaandhoo Council specified that land allocation involving lagoon reclamation is capped at a maximum of 50,000 square feet per project, with leases granted for up to 90 years. Foreign companies are eligible for lease durations of up to 66 years, extendable by an additional 33 years under a separate agreement. However, leasing any land from the newly reclaimed zone on the island’s southeast or the causeway corridor has been strictly prohibited.
The regulation also establishes strict penalties: failure to initiate physical development within 12 months of handover carries a fine of MVR 50,000, along with a recurring monthly compensation fee of MVR 5,000. Additionally, the Dhaandhoo Council will levy fines ranging from MVR 2,000 to MVR 10,000 for damaging reef and marine ecosystems or for the unauthorized harvesting of marine life by non-residents.
