Ameen says MATI’s experience important to Maldives tourism

Tourism and Civil Aviation Minister Mohamed Ameen has said the government will continue consulting the Maldives Association of Tourism Industry (MATI), describing the association’s experience as important to the development of the country’s tourism sector.

His remarks come after MATI said recent amendments affecting the tourism industry, particularly the requirement for resorts to convert 40 per cent of their US dollar revenue through banks, were introduced without consultation with the association.

MATI members have also said the requirement could create significant difficulties for resort businesses and that the burden may not be manageable.

Speaking at a press conference at the President’s Office on Thursday, Ameen said he had met MATI’s board three times at the association’s request since assuming office.

“Whenever MATI has requested a meeting, without much delay, I believe within 48 hours, I have created the opportunity for that meeting,” Ameen said.

He said dialogue between the government and MATI had continued, including on the day the relevant law came into force.

“MATI also meets with us, and dialogue has to continue with the government,” he said. “Even on the morning the law you referred to was implemented, we carried out a consultative process with MATI.”

Ameen described MATI as an association that works in the interests of Maldives tourism and thanked its chairman, Hussain Afeef, also known as Champa Afeef, and other industry figures for their contribution.

“We will always remain engaged with MATI. That engagement will continue,” Ameen said. “We will also take their guidance. Maldives tourism will benefit most by moving forward with people who have that experience and who work across the industry.”

He said the government would not avoid discussions on issues that MATI wished to raise.

“We know that consultation with MATI will always produce a good outcome,” he said.

Ameen also said the government had agreed, at MATI’s request, to conduct a workshop on the introduction of taxes on foreign tour operators and travel agents.

MATI Chairman Hussain Afeef has called on the association’s members to raise their concerns with the government over amendments requiring resorts to convert 40 per cent of their dollar revenue and over the introduction of a 17 per cent tax on foreign tour operators and travel agencies.

MATI has previously said neither the government nor the Maldives Monetary Authority consulted the association over the 40 per cent conversion requirement. The association said the only consultation held with the MMA concerned the removal of the option that had allowed resorts to convert USD 500 per tourist instead.

The government has rejected claims that there was no consultation, saying it had held discussions with MATI on the foreign exchange issue on several occasions.

President Dr Mohamed Muizzu, speaking at a ceremony on August 31 to ratify the amendments, said resorts would not face difficulty in converting 40 per cent of their dollar revenue.

“The amendment was introduced after careful study. This was not something done without consideration. Qualified technical experts carried out all the necessary work,” Muizzu said.

He said the decision was based on data and maintained that the requirement would not prevent resorts from meeting loan repayments, staff salaries or operational expenses.

“I want to say with certainty that resorts will not face any difficulty in converting 40 per cent,” Muizzu said. “There will be no obstacle to paying loans taken to develop resorts, paying employee salaries or meeting operational expenses because of the 40 per cent conversion requirement.”