Our sources in Villa Hotels tells us that the Villa Group of hotels, Sun Island, Paradise island, Holiday Island and Royal Island are to resume paying service charges to staff effective from this month. Initially service charge is expected to be fixed at 1000rf per staff (service charge “fixing” is illegal under the law!) per month and the resort is said to be in talks with tour operators to levy the service charge from accommodation which would significantly increase the service charge value. Villa Group resorts have sold blocks of rooms on allocations to various many tour operators under contract and renegotiating the contract according to the resort is not an option. So the group is reported to be trying to insert this issue whenever new contracts are signed with room allocation arrangements.
However as the group tries to induct new competent talent in to the resort, they are finding it increasingly difficult because of the service charge issue. Currently Villa group resorts are said to be in the budget holiday category hence life is hectic on these resorts with guests coming in sizable hordes and leaving in a similar fashion each day. The advantage for resort staff in these islands seems to be proximity to Male’ and ease of transportation which is one key demand of local staff who have families in Male’ and in neighboring islands. Staff retention rates are high in Villa Group resorts exactly for causes like this despite the hiatus in service charge, closer to a year now.