Resorts see lower service charge payouts over festive sales drop
The law also prohibits discrimination among employees in the distribution of service charges.
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By
Ahmed Mizyal
The Waldorf Astoria maintained its position as the resort with the highest first service charge of the year. However, the USD 2,896 (MVR 44,656) that was given to its employees is lower than last year's service charge.
In addition to the Waldorf Astoria, some of Maldives top resorts paid lower service charges last month compared to the previous two years.
According to the statistics obtained by Atoll Times, the top resorts with the highest service charges are Waldorf Astoria Maldives Ithaafushi and One and Only Reethi Rah.
Ithaafushi
The lowest average service charge since 2020 was paid last year.
Average for the last three years:
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2021 - USD 1,612.36
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2022 - USD 1,501.72
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2023 - USD 1,452.67
For December alone, service charges were USD 1,249 last December. In contrast, USD 1,779.18 was paid in 2021 and USD 1,506.65 in 2022.
In January, the service charge was USD 2,896.66 per employee. That's about USD 400 less than in January 2021 and 2022.
Reethi Rah
One and Only Reethi Rah also paid decreasing service charges in January this year compared to the same period last year. Thus:
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2022 January - USD 3,089
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2023 January - USD 3,054
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2024 January - USD 2,818
The two resorts employ more than 700 employees and generate the highest revenue in Maldives.
The One and Only resort has 128 rooms. Waldorf Astoria Maldives has 118 rooms and a private island in Ithaafushi.
Counted among the country’s top resorts, the first service charge of the year paid was lower than the last two years, meaning fewer wealthy visitors came to the two resorts to celebrate Christmas and New Year.
Amounts some other resorts paid as service charges in January:
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Villa Nautica Paradise - USD 587
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Safari Island - USD 729
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Riu Atoll & Palace Maldives - USD 1
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Oblu Experience Family - USD 726
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Grand Park Kohdhipparu - USD 457.91
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Radisson Blu - USD 613.36
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W. Maldives - USD 700
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Hurawalhi and Kudadoo - USD 985.58
According to the Employment Act, businesses in the tourism industry must charge a service charge of not less than 10% of any service provided. The service charge should be distributed equally among all the employees.
The proceeds of the service charge must be paid to the employees before the end of the following month. The law also prohibits discrimination among employees in the distribution of service charges.
