The Maldives has made changes in its laws that will allow foreign investors to invest in guesthouse business in the island nation. The only clause will be that a Maldivian retains the majority shares.

Earlier, the Maldives were against foreigners investing in the guesthouse business of the Maldives, but with the new amendment brought to the law foreigners can now invest up to 49 percent shares from the guesthouses of Maldives.

Along with this, a new partnership company can also be introduced with a Maldivian where the foreign partner consists of no more than 49 percent of the shares.

The Tourism Minister of Maldives, Dr. Abdullah Mausoom told media that with the new amendment to the bill, he hopes for the guesthouse businesses in different islands of Maldives to expand further.

He said that they have not only brought changes to the law but will also help the guesthouses in the Maldives find foreign investors as well.  A cell has already been created in this regard, according to the media reports.

Around 600 guest houses are operating across the Maldives and are one of the most lucrative businesses for locals, according to SunOnline International.

The minister said the model is practiced successfully all over the world, and the same model has been applied to local hotels and guesthouses in the Maldives. He said this will bring revolutionary changes to the investment environment.