Resort redevelopment closure stretched to 2 years
Previously, a maximum of 18 months was given to close a property for redevelopment.
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Redevelopment period for upgrading properties leased for tourism purposes has been extended to two years.
The redevelopment period was extended in 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 amendment gazetted by the tourism ministry on Wednesday:
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A property can be closed for redevelopment for a maximum of two years
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Previously, a maximum of 18 months was given to close a property for redevelopment
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The properties closed for redevelopment when the amendment comes into force will be given an additional one year if they apply to the ministry for an extension before the expiry of the existing redevelopment permit
According to the rules, the construction period for the development of an island or land leased for tourism can be extended for a maximum of three years. The construction period of a lagoon may be extended for a maximum of four years.
However, the previous practice was to extend the construction period for an additional year if 70% of the works specified in the work plan had been completed by the end of the existing construction period deadline.
The new amendment, which comes into effect on Wednesday, requires the ministry to inspect the premises and ensure that the necessary equipment and workers are present before granting the extension.
At the same time, a report describing the completion of the work must be submitted along with the certification of a quantity surveyor or engineer approved by the relevant authority.
In addition, the new amendment provides that in cases where the head lease rights are transferred to another party following a court judgment or order, the extension of the construction period for such properties will come into force from the date of transfer of the head lease rights.
