Business
Maldives offers resort construction period extension over virus disruptions
Many a developer involved in the construction of Maldives resort properties recently suffered project delays due to Covid-19 related lockdowns, shutdowns and interruptions.
More often than not, construction and development of a tourist resort happens with a combination of certain key factors: money, resources and time.
Any unwelcome time lags in the construction of a resort can affect the developer in many ways. It may result in breach of the construction permit, increased project costs, deterioration in workmanship, claims for compensation, renewal of permits – all having a degree of financial overlay.
It is not disputed that a Covid-style lockdown like the one we experienced recently would have resulted in cost increases with regard to labour material and equipment directly contributing to expanded field overheads.
It would have affected the ability to mobilise adequate manpower due to glitches in submitting documentation, seeking timely approvals and transporting them. It would have affected the timely import of materials, clearance and transportation of goods to locations due to interruption caused to supply chains. It would have also caused a series of concurrent delays where one component when held up has a cascade effect on rest of the components of the project.
Some of these developers who were affected by the lockdown communicated their concerns to the ministry of tourism. As a matter of relief, they requested that the construction period be extended to accommodate lost time.
The government seems to have appreciated their concerns in an amendment it brought out on June 22 to the Construction Period Extension Regulations.
The amendment enabled developers to apply for an extension of the construction period by an amount commensurate to time lost due to restrictions imposed or suffered pursuant to the public health emergency in effect since March.
According to this recent policy intervention, the developer in applying for relief should describe the delays encountered by the project due to restrictions imposed; define the period lost from the construction period; and provide documentation to support the claim.
On review of the application, if the ministry of tourism is convinced that delays did occur to the project and those delays are attributed to actions taken pursuant to the emergency (including lockdowns and shutdowns), the period lost from the construction period would be reimbursed in the form of an extension to the construction period. This extension will not attract a fee payment.
It may be noted that the construction period extensions provided in exchange for Covid-related disruptions would only entitle the developer for a commensurate extension of the construction period to accommodate time lags. This extension will not change the total lease period of the property.
The relief provided by this policy is limited to two things: the fact of reimbursement of time lost from the construction period, and this extension being granted without a fee.
This new rule is significant for a key reason: the lease agreement ordinarily provides the first 36 months of the tourism lease as a rent free period to develop the resort property. This is the three-year construction period.
Often times, the development of the property is not completed during that construction period for a host of reasons including insufficient or lack of funding, variations, changes to design drawings, and all sorts of other delays attributed to the supply chain. In these circumstances, an extension is invariably sought.
Extensions are generally granted to the construction period on application and payment of a prescribed fee. The fee is calculated at a base rate, charged on a per month basis, and prescribed in the regulations. The fee is applicable for each month of extension added to the construction period.
In consideration of this fact, the lease rent that would otherwise be levied from the end of the initial 36-month construction period (and applicable even during extensions) is deferred to be paid at a later date.
The key takeaway from this recent amendment is that qualifying applicants would be able to gain at least one to three months of extension to their current construction period, without the need for payment of an otherwise payable monthly fee.
Note: This article has been reproduced and adapted to fit our publishing guidelines with permission from its author: Nasheed & Co., a commercial law firm in the Maldives. The original article can be viewed here.
Barcelo Nasandhura Malé, the Maldives’ newest luxury destination, is set to open its doors in Q1 2025.
Located on the site of the former Nasandhura Palace Hotel, the property will become the largest hotel in the capital, Malé. With 136 elegantly designed rooms, including 95 with stunning ocean views, and 116 luxurious serviced apartments, Barcelo Nasandhura Malé promises a unique blend of sophistication, comfort, and convenience in the heart of this vibrant city.
Operated by the renowned Spanish hotel chain Barcelo Group, the hotel represents a significant expansion of the brand’s presence in the Maldives and beyond. Barcelo Group, known for its exceptional resorts, recently opened Barcelo Whale Lagoon Maldives in South Ari Atoll in August 2024, further solidifying its growing portfolio in the region. In addition to its Maldivian properties, Barcelo Group manages a range of high-profile hotels across the UAE, Thailand, and several European countries.
Barcelo Nasandhura Malé will feature an array of premium facilities, including four upscale dining outlets, a rooftop shisha bar, an oceanfront pool, a state-of-the-art gym, and a luxurious spa. The hotel will also boast 1,034 square meters of versatile MICE (Meetings, Incentives, Conferences, and Exhibitions) space, making it an ideal venue for corporate events and gatherings.
While some serviced apartments were initially intended for residential use, they will now be available for daily rental, offering guests enhanced flexibility and a wider range of accommodation options. Originally scheduled to open on December 1, 2024, the opening has been slightly delayed due to minor construction work. However, the team remains committed to ensuring Barcelo Nasandhura Malé is ready to welcome its first guests in Q1 2025.
Barcelo Hotel Group, awarded World’s Leading Hotel Management Company 2023 by the World Travel Awards, is the second-largest hotel chain in Spain and ranks among the 30 largest globally in terms of the number of rooms. Founded in 1931, this family-run organisation operates 280 four- and five-star city and holiday hotels, offering more than 62,000 rooms across 25 countries. The group markets its hotels under four distinct brands, each focused on providing diverse and memorable travel experiences.
Renowned for its commitment to excellence and sustainability, Barcelo Hotel Group delivers exceptional stays, seamlessly blending luxury, comfort, and environmental responsibility.
As part of its ‘Masters for Masters’ series, The Nautilus Maldives will host Denise Hoefer, Germany’s No. 1 padel player and one of the world’s top 50 most influential figures in the padel industry, for an exclusive Padel Masterclass from March 22 to 25, 2025. This exceptional event invites guests to enhance their padel skills under the expert guidance of a global champion, all set against the stunning backdrop of the Maldives’ Indian Ocean.
Padel, recognised as the world’s fastest-growing sport, has captured the hearts of 30 million enthusiasts globally, according to the International Padel Federation. This March, The Nautilus will provide a unique opportunity for guests to immerse themselves in this thrilling game during a four-day Padel Masterclass led by Denise Hoefer, Germany’s top-ranked female padel player and captain of the German national team. Participants will refine their techniques on The Nautilus’s state-of-the-art padel court, while experiencing the island’s signature blend of world-class coaching and timeless, unscripted hospitality.
The Padel Masterclass will feature a tailored mix of group and private sessions, catering to players of all levels. Younger participants will have the chance to join the Young Wonderers program, offering specially designed classes that introduce the sport in a fun and engaging way. After an energising day on the court, guests can unwind at Solasta Spa, where exclusive treatments by Maison Caulières—such as Spinal Connection Deep Tissue Healing, Volcanic Stone Therapy, and Warm Poultices—promise ultimate relaxation and rejuvenation. These tranquil spa experiences provide a perfect complement to the day’s dynamic activities, leaving participants refreshed and revitalised.
With just 26 ultra-luxury houses and residences, The Nautilus offers an intimate sanctuary within the Baa Atoll, a UNESCO Biosphere Reserve. Surrounded by powder-soft white sands, vibrant coral reefs, and crystal-clear waters, this private island retreat redefines bespoke hospitality. Every element is meticulously crafted to inspire, offering guests an unparalleled ultra-luxury experience focused on relaxation, renewal, and discovery. Whether honing padel skills or embracing the serenity of island life, The Nautilus stands as the ultimate destination for discerning travellers.
BBM, in collaboration with Lifebuoy, marked Global Handwashing Day 2024 with engaging activities aimed at instilling the habit of proper hand hygiene among Maldivian school children. Held on November 17th, the event continued the successful “H for Handwashing” campaign, blending education with creativity and fun.
The initiative featured info sessions, exciting games, and creative contests designed to teach children the importance of handwashing while giving them a hands-on understanding of the correct techniques. Activities ranged from reimagined board games like “Germs & Ladders” and “Handwashing Ludo” to interactive sessions that reinforced hygiene habits in an enjoyable way.
This campaign underscores BBM’s commitment to fostering healthier practices among the younger generation, contributing to a healthier and more hygienic Maldives. COO of BBM, A.V.S. Subrahmanyam, emphasised, “At BBM, we believe that empowering the next generation with the knowledge and tools for better hygiene practices is vital for building a resilient and healthy community. We are proud to continue our efforts in collaboration with partners like Lifebuoy.”
Adding to this, Muksith Hussain, Head of Retail Sales at BBM, shared, “Reaching children through such innovative initiatives helps us lay the foundation for a healthier tomorrow. We are thrilled to see the enthusiasm and participation of these young minds in learning the importance of hygiene.”
The event also saw valuable support from the Maldivian Red Crescent (MRC), whose contributions enriched the experience for the children. BBM expressed gratitude for MRC’s involvement, as their efforts played a key role in making the event impactful and memorable.
Through campaigns like this, BBM aims to nurture a lifelong habit of handwashing, creating a brighter and healthier future for the Maldives.
Let’s keep the spirit alive—join the Handwashing Revolution with BBM and Lifebuoy!
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