Universal, Pulse object to new dollar exchange rules
They said that the requirement to exchange $500 per tourist is challenging to implement.
Pulse Hotels and Resorts and Universal Enterprises, two major resort operators in the Maldives, on Thursday announced their opposition to new regulations introduced by the Maldives Monetary Authority (MMA), which mandate that resorts exchange $500 per tourist into local currency.
The companies argue that the requirements place undue financial strain on their operations.
Under the new MMA guidelines, each tourism business, including resorts, must exchange $500 per tourist. However, some resorts have indicated they will not comply with the rule, citing concerns over feasibility and financial impact.
In a letter signed by Mohamed Khaleel, Pulse Hotels stated the following reasons for opposing the rule:
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The requirement to exchange $500 per tourist is challenging to implement.
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A large share of dollar revenue is already allocated to cover operational expenses, making it costly to obtain additional dollars from foreign sources.
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The dollars received are necessary for employee salaries, loan repayments, and tax payments.
Pulse Hotels, which operates Kandima Maldives, Nova Maldives, Nautilus Maldives, and Avalon Maldives, has requested that the MMA reconsider the decision, stating that the policy would negatively impact the company’s financial health.
Universal Enterprises, another leading resort operator, also sent a letter to the MMA. Signed by Chairman Mohamed Umar Maniku, the letter highlighted:
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The $500 per tourist requirement does not account for variations in room rates, length of stay, or guest demographics.
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For instance, a family of four staying for four days at a rate of $250 per person would be required to exchange $2,000, even if total earnings from that booking are $1,000.
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All of Universal’s accounts are managed in the Maldives, and the company finds the requirement unreasonable.
Universal Enterprises operates eight resorts in the Maldives, including Kurumba Maldives, Velassaru Maldives, Baros Maldives, Huvafen Fushi Maldives, Kuramathi Maldives, Kandolhu Maldives, Milaidhoo Maldives, and Dhigali Maldives. The company has joined Pulse Hotels in requesting the government to review the new rule.
Companies affiliated with Champa Mohamed Moosa, a prominent figure in the Maldives’ tourism sector, have also urged the government to revoke the policy.
