Workers from 42 resorts join petition against ending dollar salaries

Employees from 42 resorts have joined a petition opposing plans to phase out salary payments in US dollars and shift wages to Maldivian rufiyaa, according to the Tourism Employees Association of Maldives (TEAM).

TEAM said workers from the 42 resorts signed the petition within the first 24 hours of the campaign.

The union launched the petition after Maldives Monetary Authority (MMA) Governor Ahmed Munawwar announced a target of moving domestic transactions to rufiyaa and ending foreign currency salary payments by 2030.

Munawwar announced the policy on Monday but did not provide an implementation schedule or details on how the transition would be carried out.

TEAM said the response to the petition showed opposition among resort workers to changing the currency in which their salaries are paid.

“This overwhelming support proves that resort workers are standing firm, united, and strong in defence of their income, livelihoods, and rights,” TEAM said.

The union said the campaign would continue and called on employees at resorts across the country to sign the petition. TEAM said the campaign was also intended to protect resort workers' service charge payments.

The petition comes as the government introduces changes to the country's foreign exchange framework.

Parliament last week passed amendments to the Foreign Exchange Act requiring resorts to convert 40 per cent of their monthly foreign currency revenue through local banks.

TEAM has opposed the conversion requirement, arguing that the country's foreign currency shortage stems from government policies and that its impact should not be passed on to tourism employees.

The union has previously said it would oppose measures that reduce workers' take-home income or convert dollar-denominated salaries and service charges into rufiyaa unless employees are able to obtain US dollars through banks at the official exchange rate.

Explaining the central bank's longer-term policy, Munawwar said increasing the use of rufiyaa in domestic transactions was necessary to increase demand for the local currency.

“Salaries are currently paid in dollars — for example, at Trans Maldivian Airways (TMA) or across resorts. Therefore, dollar salary payments must undergo a change. That is how demand for the Maldivian rufiyaa will increase,” Munawwar said.

The Governor said more than 40 per cent of transactions in the domestic economy currently involve foreign currency.

“If I hand someone dollars right now, they will naturally expect dollars. Monetary policy cannot be fully effective unless demand for the Maldivian rufiyaa is established,” he said.

“MMA's vision is to fully realise these changes by 2030.”