President says similar result from $500 per tourist, 20% revenue exchange
The regulation introduced by MMA on October 1 requires resorts to exchange $500 per tourist.
President Mohamed Muizzu said on Monday that the two options proposed in the new foreign exchange bill for tourism and foreign exchange-earning businesses would yield similar outcomes.
The regulation introduced by the Maldives Monetary Authority (MMA) on October 1 requires resorts to exchange $500 per tourist. The draft bill presented to parliament on Monday, however, makes this requirement optional, offering a second option to exchange 20% of revenue instead.
Speaking during a tour of Kaafu Atoll, the president emphasised that both options would have a comparable effect.
"The bill will be as I said. Resorts will have to mark $500. And I said that's about 20% of the resorts' revenue. We're giving a total percentage in consultation with the resorts. That's what I said," he explained.
The president urged parliament to pass the bill during the current session, which concludes on Sunday.
The $500-per-tourist requirement has drawn criticism from many in the tourism industry. Over 50 resorts have submitted a letter to the MMA expressing concerns over their ability to comply with the requirement.
The bill also provides options for other tourism businesses, including guesthouses and safaris, to exchange dollars. The provisions are:
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Guesthouses and safaris can either exchange $25 per person or allocate 20% of their revenue.
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Businesses with annual revenues exceeding $15 million will be subject to the proposed tax rate of 20%, a reduction from the $20 million threshold in the draft bill.
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