Govt on people's side, president says amid tourism backlash

President Mohamed Muizzu has reaffirmed the government’s commitment to supporting the people as several resorts express opposition to new Maldives Monetary Authority (MMA) regulations mandating dollar exchanges per tourist at local banks.

The regulation, effective from October 1, 2024, requires each business in Category A such as resorts to deposit $500 per tourist in a Maldivian bank. For Category B guesthouses with fewer than 50 rooms, the deposit requirement is $25 per person.

The rule has raised concerns among large resort operators, who argue that differences in room rates and varying tourist stays make the fixed deposit amounts unfeasible.

Many resorts have instead proposed an alternative approach, suggesting the deposit of a percentage of dollar earnings rather than a fixed sum per tourist.

The concerns of the tourism sector, a major contributor to the national economy, come amid President Muizzu’s post on X on Thursday, where he addressed the issue indirectly, emphasising the government’s dedication to equitable policies.

"Political leaders who do not want to benefit the people without wealth will be very clear to the people in the future,” President Muizzu wrote, though it remains unclear whether his reference to “political leaders” pertained to wealthy business figures challenging the MMA rules or opposition politicians.

“This government will continue to stand by the people and bring justice and prosperity to all the people."

Under current MMA guidelines, the first deadline for depositing the required $500 and $25 per tourist is set for January.