Forex bill: Maintains $500 for resorts; relax for guesthouses
The current regulation has faced opposition from over 70 resorts, citing concerns over the $500 per tourist exchange requirement.
Maldives Monetary Authority (MMA) has circulated a draft bill on foreign currency exchange to various stakeholders, seeking comments on its provisions, with the proposed legislation mandating that resorts still exchange $500 per tourist and guesthouses exchange $25 per guest, with certain exemptions.
The MMA has invited stakeholders to submit comments via email by Sunday afternoon.
Under the current rules, resorts, liveaboards, and guesthouses with more than 50 rooms fall into 'Category A' and are required to exchange $500 per tourist. Guesthouses with fewer than 50 rooms fall into 'Category B' and are required to exchange $25 per guest.
The bill introduces a new category for businesses earning $20 million annually in foreign exchange. Such businesses would be required to deposit foreign currency earnings into a local bank account, with 25% of the revenue marked for conversion.
Significant changes from the current regulations include:
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Expanding the scope to include businesses with substantial foreign exchange earnings: Businesses with foreign exchange earnings of $20 million a year will have to be deposited in a bank account in Maldives and 25% of the revenue to be exchanged.
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Transfer of guesthouses and liveaboard vessels with less or more than 50 rooms to Category B; Once the bill is passed and ratified, any guesthouse and liveaboard will have to exchange $25 per guest instead of the current $500
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Maintaining the $500 exchange requirement for resorts per tourist.
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Three types of tourists who do not have to be marked have been included in the bill: These include tourists who spend less than 24 hours, children under the age of 2, and complimentary guests.
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Tourist vessels registered outside Maldives are exempt from the bill.
The current regulation has faced opposition from over 70 resorts, citing concerns over the $500 per tourist exchange requirement.
President Mohamed Muizzu has stated that the $500 per tourist exchange requirement cannot be relaxed, expressing support for maintaining the policy in alignment with public interests.
