Thoriq calls for moderate solution to tourism dollar exchange
He emphasised the importance of constructive dialogue with business owners instead of ridiculing their concerns.
A new rule that forces tourism businesses to exchange dollars should be discussed and moderated, ruling People's National Congress (PNC) MP Ahmed Thoriq said Tuesday.
The government’s decision to enforce a rule requiring tourism businesses to exchange a minimum of $500 per tourist has stirred intense debate among industry stakeholders and lawmakers.
This rule, aimed at addressing the dollar shortage in state reserves, has faced backlash from more than 70 resorts, which have formally informed the Maldives Monetary Authority (MMA) that they cannot comply with the regulation.
The rule applies to resorts and tourist hotels with at least 50 rooms, mandating that they exchange $500 per tourist to bolster the country’s foreign currency reserves. However, the directive has been met with resistance from businesses, citing financial and operational difficulties.
During a budget debate in Parliament, Thoriq expressed concerns about the deteriorating economic situation and criticised the government's handling of the issue. He emphasised the importance of constructive dialogue with business owners instead of ridiculing their concerns.
"We should not call businessmen names and make fun of them. I hope the government will go to the same table with the businessmen and find a moderate solution," Thoriq said.
His remarks reflect the growing frustration within the tourism sector, which plays a critical role in Maldives' economy. Stakeholders argue that the $500 per tourist rule imposes undue pressure on an industry already grappling with global economic challenges and the aftermath of the COVID-19 pandemic.
Despite the mounting criticism, President Mohamed Muizzu reaffirmed his commitment to the policy during a rally marking his government’s one-year anniversary. Addressing the public at the Social Centre on Sunday evening, the president was resolute in his stance.
"I'm making it very clear that I won't change the rules. You just have to change $500," he declared emphatically.
