Tourism Ministry Extends Resort Redevelopment Period

The Maldives has recently extended the period for the redevelopment of properties leased for tourism purposes to a maximum of two years. This change is part of the first amendment to the 'Regulation on Extension of Period Granted for Development of Property Leased for Tourism Purposes and Application to Deferral of Rent and Penalty'. This extension allows for more flexibility and time for property owners to renovate and improve their leased properties in the tourism sector.

The Ministry of Tourism recently published an official amendment outlining several key changes.

1. Extension to a Two-Year Redevelopment Period

Under the newly amended regulations, the maximum period for closing a property for redevelopment has been extended from 18 months to two years. This gives developers more time to carry out necessary renovations and improvements on the property.

2. One-Year Extension for Properties in Progress

Under the new modification, properties that are currently undergoing redevelopment will have the opportunity to apply for a one-year extension before their existing redevelopment permit expires. This provision allows the relevant parties to continue their progress and complete the redevelopment project within the extended time frame.

3. Construction Period Flexibility

There have been recent changes to the regulations regarding the construction period for islands or land leased for tourism purposes, allowing for more flexibility. Previously, the maximum extension for construction in these areas was limited, but now it has been extended to three years. Additionally, the construction period for lagoon areas can now be extended for a maximum of four years. These changes provide more time and flexibility for developers to complete their projects.

4. Inspection and Certification Requirements

Under the new regulations, the ministry now mandates that premises undergo a thorough inspection before an extension can be granted. This inspection ensures that all necessary equipment and personnel are in place. Furthermore, a comprehensive report detailing the completion of the work, along with certification from an approved quantity surveyor or engineer, must be submitted for approval.

5. Transfer of Head Lease Rights

The recent amendment also covers the transfer of head lease rights in cases where there is a court judgment or order. In these situations, if there is a transfer of head lease rights, the extension of the construction period for the properties involved will begin from the date of the transfer.

The recent regulatory changes, which came into effect on Wednesday, signify a notable change in the way redevelopment periods for tourist properties are handled. These changes aim to offer more flexibility while still ensuring necessary oversight and compliance measures are in place.

Feature Photo: Komandoo Island Resort & Spa Maldives