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Kaani Hotels disburse MVR1.1 M in service charge

Mohamed Rehan
17 January 2023, MVT 14:50
One out of the four properties operated in K. Maafushi by Kaani Hotels-- Photo: Kaani Hotels
Mohamed Rehan
17 January 2023, MVT 14:50

One of the largest guesthouse operators in the Maldives, Kaani Hotels, has paid out a total of USD 75,600 (MVR1.1 million) to its 180 staff as service charge.

The guesthouse operator paid USD 420 (MVR6,476) in service charges to each of its employees when the month ended, which is the highest a guesthouse property has ever paid in the Maldives. In November 2022, Kaani Hotels paid USD 370 (MVR5,705) in service charges to its employees.

With this, Kaani Hotels matched the average service charges paid by some Maldivian resorts, which generate higher revenues comparatively.

Speaking about the significant payout, the Chairman of Kaani Hotels and the current President of the Guesthouse Association of Maldives (GAM) Abdulla Nasheed said the company’s earnings improved during the last two months in 2022. He added that the properties are currently performing better than before the Covid-19 outbreak.

“We are expecting next month’s service charge to be even better,” Nasheed said.

Kaani Hotels disburses between USD 250 to 300 in service charges on average, while the majority of guesthouse properties in Kaafu atoll Maafushi pay a similar amount in service charges.

Kaani Hotels currently operates four properties in Maafushi with a combined total of 400 beds and a 26-bed property in Malé City. They are also developing a 250-bed hotel in Alifu Alifu atoll Ukulhas.

Tourist properties are legally required to pay 10 percent of their monthly revenues as service charge to employees. Labor Relations Authority (LRA) has the authority to fine businesses found in breach of the service charge policy.

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