Maldives extends resort rent deferral to 3 years for maintenance, upgrades

The Ministry of Tourism has introduced an amendment to its regulations, extending the rent deferral period for resorts undergoing maintenance or redevelopment to a maximum of three years. This extension applies if the resort suspends operations entirely during the upgrade process.

The update, published in the government gazette, marks the third amendment to the Regulation on the Procedure for Extension of Deadline for Development of Properties Allocated for Tourism Purposes and Deferral of Rent and Penalties. It provides resorts with more flexibility in managing redevelopment projects, allowing for extended closures while deferring rent payments.

New deferral terms for redevelopment

Initially, the regulation—first introduced in December 2022—permitted the deferral of rent payments for up to 18 months, extendable to two years if 50% of the upgrade work was completed. However, under the latest amendment, resorts can now defer rent for a period of 36 months, or three years. In cases where the entire resort is demolished and redeveloped, the deferral period can be extended to 42 months (three and a half years).

The tourism minister retains the authority to grant these rent deferrals, provided that the resort closes entirely for the purpose of renovation or redevelopment.

Flexibility for resort construction deadlines

In addition to rent deferrals, the amendment also revises regulations related to the construction of resorts on allocated islands, lands, or lagoons. According to the regulations, the maximum allowable extension for the construction period of a resort island is three years, while for lagoons, the period is four years.

The amendment provides further flexibility, removing some earlier conditions and simplifying the extension process. Previously, the extension required a detailed inspection by the ministry, along with certification from an authorised surveyor or engineer confirming incomplete work. However, the new regulation allows the ministry to extend the construction period based on a simple declaration from the resort, confirming the availability of materials and workers at the site.

If the ministry discovers that the declaration has been violated, it reserves the right to revoke the permit.