Villa to close all resorts, except for Paradise

Maldivian resort chain, Villa Hotels & Resorts, on Monday, announced the decision to temporary close all its tourist properties, with the exception of Paradise Island Resort.

Villa is one of Maldives’ largest resort operators.

The tourist properties it runs other than Paradise Island Resort (K. Lankanfinolhu) includes Fun Island Resort (K. Bodufinolhu), Holiday Island Resort (A. Dh. Dhiffuhsi), Royal Island Resort (B. Horubadhoo), and one of the country’s largest resorts - Sun Island Resort (A. Dh. Nalaguraidhoo).

Sun has been informed the decision followed the travel restrictions imposed by the Maldivian government on tourist arrivals from Villa’s main source markets as a measure to prevent and contain an outbreak of COVID-19 in Maldives. The countries which Maldives has restricted travel from includes Italy, Spain, France and Germany.

Villa will not accept any new bookings, except for Paradise, and plans on transferring its existing bookings at other resorts to Paradise in the coming days.

It will close down its other resorts following the departure of its existing guests.

Villa has instructed its resort workers to clear their leaves. While workers haven’t been expressly asked to take no-pay leave, Sun has been informed the company will send its workers home on no pay-leave once the two-week restriction on travel between resorts and residential islands is lifted.

The move comes less than a week after it issued a circular, signed by Managing Director Siyad Qasim, informing its employees of salary cuts within the range of 10 to 50 percent.

Siyad wrote in the circular that the COVID-9 pandemic had resulted in a drastic impact on the tourism industry with significant drops in tourist arrivals. He said that the Board of Directors had therefore passed a resolution to impose a pay cut effective from April as a cost-cutting measure to prevent bankruptcy.

“There is no other way to keep the company operation without cutting the expenditure on salaries,” he said.