Tourism industry proposed solutions for dollar exchange
Operators from approximately 70 resorts have called on the MMA to review the foreign exchange regulations.
The tourism industry in the Maldives presented several proposals to the government and the Maldives Monetary Authority (MMA) to address challenges stemming from the implementation of new foreign exchange regulations introduced last October.
Under the new rules, resort operators are required to deposit their foreign currency earnings in local banks and exchange $500 per tourist.
Resort operators have expressed concerns about these requirements, stating that no viable solutions have been agreed upon despite attempts to engage with the government and the MMA.
According to available documents, the Maldives Association of Tourism Industry (MATI) submitted a formal letter on October 13 to President DMohamed Muizzu and the MMA Governor Ahmed Munawar outlining proposed solutions.
The MAT proposed an initial solution requiring resorts to exchange 10% of their foreign exchange earnings. If this was deemed unfeasible, alternative suggestions included:
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Setting a mandatory charge of $150 per tourist visiting resorts.
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Extending the requirement to other sectors of the tourism industry, such as guesthouses, city hotels, and safari operators, with a compulsory charge of $15 per tourist.
Additionally, MAT proposed introducing financial instruments to encourage dollar investments through local banks. This included fixed deposit facilities with attractive interest rates for foreign currency deposits, aimed at increasing the flow of dollars into local banks.
Despite these proposals, MATI officials have reported that neither the President’s Office nor the MMA responded to the letter or engaged further on the matter.
Operators from approximately 70 resorts have called on the MMA to review the foreign exchange regulations. A MATI official stated that the tourism industry remains willing to hold discussions to find mutually acceptable solutions.
At a ceremony held at the Social Centre Sunday evening, marking the government’s one-year anniversary, President Muizzu urged tourism entrepreneurs to comply with the existing rules on dollar exchange.
