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Foreign tourism investments to register?

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“No foreign investor may carry out any tourism related activity in the Maldives except after signing a foreign investment agreement and registering that investment with the Ministry of Tourism.”

Sounds like a major policy shift?

It is neither a new policy initiative nor a recent change in law.

The law

The policy statement is captured eloquently in section 39 of the Maldives Tourism Act. The section has been part of the Tourism Act since the law was first enacted some 21 years ago. Despite the fact that the Tourism Act has undergone amendments at least nine times since its introduction on May 16, 1999, section 39 has survived unaltered, unchanged.

Section 39 of the Maldives Tourism Act says this:

No foreign investor may carry out any tourism related activity in the Maldives except after signing a foreign investment agreement as mentioned in the Foreign Investment Act and registering that investment with the Ministry of Tourism as a foreign investment as provided in the Foreign Investment Act.

As is evident from the language of the section, the position crystallised in the form of section 39 of the Tourism Act is closely related to and deeply rooted in the Maldives Foreign Investment Act – a piece of law that has been in existence for some 41 years already, again unaltered, unaffected.

Section 1 (b) of the Foreign Investment Act that was introduced on May 1, 1979 says that no foreign investment can be carried out in the Maldives except after registering that investment and signing an agreement with the Ministry of Tourism (if the investment is in tourism) and with Ministry of Trade Industries and Labour (if the investment is in any other industry). Ministry of Trade is now succeeded by the Ministry of Economic Development.

Further, section three of the Foreign Investment Act reiterates that every investor in the tourism industry shall sign an agreement with the Ministry of Tourism if that activity relates to tourism, and with the Ministry of Trade Industries and Labor if the business relates to any other industry.

The unpacking

Let’s unpack section 39 of the Tourism Act and understand its components.

Firstly, the section applies to all foreign investments in the Maldives tourism sector. This may mean that it goes beyond the acquisition or leasehold ownership of a resort property. It extends to all verticals of the industry which are open for foreign direct investment.

Secondly, permissibility is dependent on to two events: signing a foreign investment agreement; and registration of the investment as a foreign investment.

The execution of the foreign investment agreement and registration of the investment are both considered as “entry requirements” for a foreign investor. Once a foreign investor travels through these two processes and completes its entry in to the Maldives, it gets to operate at a level field with a local investor in the same space. All other regulatory requirements of the industry are applicable to local and foreign investors alike – for example – the signing of an island lease agreement for lease of a resort property.

This striking legal requirement flows from the Foreign Investment Act which asks tourism sector foreign investors to register their investments with the Ministry of Tourism and investors in the non-tourism sectors to register their investments with Ministry of Economic Development; and irrespective of their chosen industry, to sign foreign investment agreements with the respective ministries.

The breach

Section 39 embodies a classic case of a piece of law that is “more honoured in breach than in the observance.”

While over time foreign investment approvals and signing foreign investment agreements have become synonymous with the Ministry of Economic Development, the requirement of law is in reality equally applicable to foreign investors in tourism and non-tourism sectors alike – as the legal requirement emanates from the same source – the country’s foreign investment law.

However, to our knowledge, there has never been an occasion where this legal requirement has ever been complied with so far as it relates to the tourism industry.

There is nothing in the body of legal rules, guidelines, or administrative bureaucracy of the Ministry of Tourism that dictates a foreign investor to complete a separate process of signing a foreign investment agreement or complete a registration process for its investment with reference to section 39 of the Tourism Act or section three of the Foreign Investment Act.

Whenever this legal requirement was flagged in legal due diligence investigations in the past, the prevailing view of responsible officials had consistently been that the requirements of section 39 are duly met with the signing of the Island Lease Agreement (in place of a separate foreign investment agreement) and grant of an operating license (in place of the registration of a resort investment). As much as they carve out these two requirements, the remaining regulatory requirements on registration and licensing are religiously followed – and applied to all investors alike – local or foreign – in all verticals of the industry.

The shift

However, this position may shift soon.

Ministry of Economic Development (the body responsible among other things for the registration of entities investing or operating in tourism industry) has launched a new FDI policy on February 11, 2020.

Since the inception of this FDI policy, the Ministry of Economic Development is insisting on following the foreign investment law requirements even in case of tourism sector investments – so long as they remain law.

The relief for existing investors is that the policy will be enforced only in respect of future requests – existing investments will not be disturbed.

The conclusion

Since this legal requirement rooted in an archaic piece of law (which has only been followed in its breach) has now been revived with the introduction of the FDI policy, there is bound to be discussion and disagreement. It is likely that the ensuing discussions may stimulate relevant policy makers or interested legislators to make a decision – either to keep the requirement as it is or expunge it from the statute books of the country.

Note: This article has been reproduced with permission from its author: Nasheed & Co., a commercial law firm in the Maldives. The original article can be viewed here.

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Bestbuy Maldives, Atmosphere Core elevate chef training with Michelin-star masterclass

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Bestbuy Maldives (BBM) brought together 100 chefs from leading resorts and restaurants across the country on 24 November for an exclusive culinary masterclass led by Italian One-Michelin-Star Chef Pasquale Palamaro. Held at Hulhule Island Hotel (HIH), the full-house session marked a key highlight of the ongoing “Mediterranean Soul, Maldivian Heart” culinary series presented by Atmosphere Hotels & Resorts in collaboration with BBM.

The masterclass formed the Malé City chapter of the broader programme, which features a lineup of events hosted at RAAYA by Atmosphere and VARU by Atmosphere throughout November 2025. The HIH masterclass served as a platform for professional development, skill exchange, and hands-on learning for chefs from some of the Maldives’ most distinguished culinary teams.

Chef Pasquale, celebrated for his work at Indaco Restaurant in Amalfi, guided participating chefs through a series of live demonstrations that reflected his signature philosophy—one that emphasises intuition, simplicity, and a deep respect for natural ingredients.

“Cooking, to me, is a dialogue with nature — an art of transforming simplicity into beauty. Bringing Indaco’s spirit to the Maldives is an opportunity to merge two coasts and two cultures through taste, technique, and emotion,” he shared during the programme.

Participants explored Mediterranean-inspired methods adapted to Maldivian produce, with Chef Pasquale showcasing dishes rooted in coastal heritage and contemporary craftsmanship. The session also encouraged discussion around ingredient integrity, sustainability-led cooking, and the evolving expectations of today’s luxury diners.

The fully subscribed masterclass reaffirmed BBM’s long-running commitment to cultivating professional excellence within the Maldives’ hospitality sector.

As the authorised distributor of globally renowned culinary and F&B brands, BBM has built a reputation for its Masterclass Series, which brings international expertise to local professionals through practical workshops and high-level training. This latest edition added a Michelin-starred perspective to the growing body of knowledge BBM continues to nurture across the industry.

Ali Afrah Hassan, Head – Human Resources, Administration & Corporate Affairs at BBM, highlighted the importance of consistent capacity building in the sector.

“This masterclass reflects our ongoing commitment to strengthening the skills of the Maldivian culinary community. By creating opportunities for chefs to learn directly from international experts, we help broaden professional exposure and support the industry’s growth. BBM will continue to invest in platforms that uplift local talent and contribute to raising the overall standard of hospitality in the Maldives,” he said.

The masterclass follows two immersive days at RAAYA by Atmosphere earlier in the month, where guests joined farm experiences, tasting sessions, and a hands-on workshop before a five-course dinner curated by Chef Pasquale. The series will continue with a 4-Hands Dinner at Kaagé on 27 November and a masterclass with a five-course dinner at NÜ on 28 November at VARU by Atmosphere.

Anupam Banerjee, Vice President, Food & Beverage at Atmosphere Core, emphasised how the collaboration bridges traditions and culinary ideologies.

“All our island resorts have long been recognised for their culinary offerings,” he noted. “Through Chef Pasquale’s artistry and our island-inspired ethos, we are crafting an evocative dialogue between Mediterranean and Maldivian gastronomies that not only captivates the palate but also champions environmental stewardship and celebrates the cultural richness of both regions.”

For attending chefs, the session offered more than demonstrations—it provided the rare opportunity to learn directly from a Michelin-starred figure whose approach blends innovation with a respect for locality. Many participants described the workshop as an opportunity to refine technique, discover new applications for familiar ingredients, and build valuable connections within the professional community.

With strong engagement and enthusiastic feedback from attendees, the masterclass stands as another milestone in BBM’s long-standing role in elevating culinary standards in the Maldives.

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2 decades of culinary excellence: BBM’s founding legacy with Hotel Asia continues in 2025

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Hotel Asia Exhibition and International Culinary Challenge is referred to be the hospitality industry event in the Maldives. In this year’s Culinary Challenge (19 to 22 October 2025) comprising competitions over 20 categories, most will take place at the Faculty of Hospitality and Tourism Studies, Maldives National University, and some at the Synthetic Track, Hulhumalé.

A Founding Partnership that Endures

Since the very first edition in 2001, Bestbuy Maldives (BBM) has played a central role in shaping the International Culinary Challenge into the Maldives’ most prestigious culinary platform. The event has become a cornerstone for professional development, bringing together chefs from across the Maldives to compete, learn, and showcase their craft.

BBM and their associated Principals sponsor an overwhelming majority of categories. “From the beginning, our goal has been to create opportunities for Maldivian chefs to rise to global standards. This partnership has grown with the industry itself,” said A.V.S. Subrahmanyam, Chief Operating Officer of BBM.

Nurturing Local Talent

BBM’s contribution extends beyond sponsorship. The company has built a long-term system for recognizing and developing local culinary talent.

  • BBM Chairman’s Trophy for the Best Maldivian Competitor.
  • Most Promising Young Chef Award for emerging talent.
  • Global exposure programs for Maldivian chefs through sponsored participation in international events.
  • Pro-bono Masterclasses with world-renowned chefs to encourage learning and innovation.

Investing in the Future of Hospitality

Through initiatives such as Building Young Talent, BBM continues to mentor aspiring professionals and support the next generation of chefs. The company also promotes inclusivity by sponsoring opportunities for female and young chefs to gain international exposure.

BBM’s industry partnerships include its role as Title Sponsor of the Hotelier Maldives Awards, celebrating excellence across the Maldivian hospitality sector.

Proud Sponsors of Culinary Excellence

In 2025, BBM and its partner brands proudly sponsor 14 competition categories and 8 Main Awards, further strengthening their role in the development of culinary arts in the Maldives. Categories include Decorated Cake, Artistic Showpiece, Bread and Pastry Display, Three Desserts (Display), Desserts, Rice Dish, Asian Noodles, Team Challenge, Maldivian Dish, Creative Sandwich, Young Chef, Tea Challenge, tapas/finger food, and Iced Mocktail.

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Bestbuy Maldives, MNU forge partnership to advance hospitality education

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The Maldives National University – Faculty of Hospitality and Tourism Studies (MNU-FHTS) and Bestbuy Maldives (BBM) have officially signed a Memorandum of Understanding (MoU) to strengthen industry-academic collaboration and advance hospitality education in the Maldives.

The MoU was signed by Dr Aishath Shehenaz Adam, Vice Chancellor of MNU, and Ismail Hilmy, Chairman and Managing Director of BBM, during a ceremony attended by the university’s Chancellor Dr Mahmood Shaugee, senior management, and representatives from both organisations.

This partnership marks a significant milestone in developing a state-of-the-art Food and Beverage Practical Demonstration Kitchen at MNU-FHTS. BBM will support the upgrading of the existing Garde Manger kitchen and classrooms, contributing financially and materially to create a modern, industry-standard learning environment for future hospitality professionals.

Beyond infrastructure, the collaboration will extend to academic and training support, research and innovation in culinary arts, community engagement, and professional networking opportunities, ensuring that students gain practical, real-world experience aligned with industry expectations.

Highlighting the broader purpose of this partnership, BBM stated that, “This is a significant step in the direction of BBM’s vision involving hospitality industry outreach in the Maldives — because tomorrows start today. Initially, we will set up a world-class model kitchen that will be suitable for masterclasses and hands-on training for students; and also for product demonstrations, masterclasses, and interaction with groups of customers.”

Speaking at the ceremony, representatives from both institutions emphasised their shared vision to promote excellence in education, innovation, and human capital development in the Maldivian hospitality sector. This partnership underscores BBM’s continued commitment to supporting education and industry growth, and MNU-FHTS’s mission to bridge the gap between academia and industry — nurturing the next generation of hospitality leaders in the Maldives.

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