TEAM says tourism workers shouldn't bear cost of dollar crisis

The Tourism Employees Association of Maldives (TEAM) has said tourism workers should not bear the cost of the country’s foreign currency shortage, warning against measures that could reduce salaries and service charges received by resort employees.

TEAM issued a statement on Tuesday expressing concern over the government’s decision to require resorts to convert 40% of their foreign currency revenue through local banks.

Parliament on Wednesday passed amendments to the Foreign Exchange Act introducing the 40% requirement. The bill was passed with 47 votes in favour and 12 against.

TEAM said it does not accept measures that place the effects of the foreign currency shortage on tourism sector employees, arguing that the situation is the result of government policies and decisions.

The association said the changes could reduce the income received by resort workers, particularly if dollar-denominated salaries and service charges are converted into Maldivian Rufiyaa.

TEAM said any such conversion should only take place if employees are guaranteed access to US dollars from banks at the official exchange rate of MVR 15.42 when they require foreign currency.

“We make it clear that this federation and the sector's workforce will not support any decision that reduces tourism employees' income or forces dollar-denominated salaries and service charges to be converted to Rufiyaa without guaranteeing dollar availability at the official rate,” TEAM said.

The association said tourism workers should not be made responsible for bringing foreign currency into the banking system or face a reduction in income as part of measures to address the dollar shortage.

It called for any policy affecting resort employees’ salaries and service charges to be considered only as a last resort and after consultation with workers and other tourism industry stakeholders.

TEAM also warned that it would take action if the rights or income of tourism employees were affected.

“If employees' rights are compromised [by such measures], we offer our full assurance that we will stand alongside our members in taking all necessary actions to protect those rights,” the association said.

TEAM said the government should first address state expenditure before adopting measures that affect resort employees.

The association called for reductions in the number of political appointees, the closure of foreign diplomatic missions it considers unnecessary, the suspension of development projects that are not a priority, and changes to the management of foreign currency generated by the tourism industry.

TEAM maintained that the current foreign exchange shortage resulted from government policies and political decisions rather than the actions of tourism workers.

The association’s statement follows concerns from tourism industry stakeholders over the increase in the foreign currency conversion requirement.

Under the amendments passed by Parliament, resorts will be required to exchange 40% of their monthly foreign currency revenue through banks by the 28th of the following month.