The period for the redevelopment of properties leased for tourism purposes has been extended to a maximum of two years. This expansion comes as 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’.
According to the official amendment published by the Ministry of Tourism on Wednesday, the key changes are as follows:
Previously, the maximum period to close a property for redevelopment stood at 18 months. However, the newly amended regulations now allow properties to be closed for redevelopment for up to two years.
For properties currently undergoing redevelopment, when the amendment takes effect, there is the provision for an additional one-year extension if the relevant parties apply to the ministry before the existing redevelopment permit’s expiry.
The rules surrounding the construction period for islands or land leased for tourism purposes have been made more flexible. The maximum extension for construction in such areas is now three years, while lagoon construction may be extended for a maximum of four years.
One notable change is the requirement for the ministry to inspect the premises and ensure the necessary equipment and workforce are present before granting an extension. Additionally, a detailed report describing the completion of the work, alongside certification from a quantity surveyor or engineer approved by the relevant authority, must be submitted.
The new amendment also addresses the transfer of head lease rights following a court judgment or order. In such cases, the extension of the construction period for affected properties will take effect from the date of the head lease rights transfer.
These regulatory changes, effective from this Wednesday, mark a significant shift in the approach to redevelopment periods for tourist properties, providing greater flexibility while maintaining necessary oversight and compliance measures.
Feature Photo: Komandoo Maldives Resort