Mohamed Moosa, one of the most influential business figures in the Maldives and a pioneer in the nation’s tourism sector, has formally objected to a new foreign currency regulation introduced by the Maldives Monetary Authority (MMA). The regulation, which came into effect on 1 October 2024, mandates tourism establishments to transfer a portion of their foreign currency earnings into Maldivian Rufiyaa, among other stipulations.
In a letter addressed to the MMA’s Governor Ahmed Munawwar, Moosa expressed serious concerns over the regulation’s impact on the tourism industry, stating it would have “disastrous domino effects” on the Maldivian economy. The letter highlighted the lack of consultation with industry stakeholders prior to the regulation’s implementation and criticised the policy as “arbitrary” and “unfeasible.”
Moosa is the chairman of Crown & Champa Resorts, which operates several high-end resorts across the Maldives. With a career spanning over four decades, he, along with his brother Hussain Afeef, has played a crucial role in developing the Maldives’ tourism industry. Through their ventures, they have not only built luxury resorts but also heavily invested in essential services like Trans Maldivian Airways (TMA), the world’s largest seaplane operator, critical for transporting tourists to remote islands.
In the letter, Moosa outlined specific provisions in the regulation that he believes will impose undue financial strain on tourism businesses. The regulation requires tourism entities to transfer foreign currency revenues into a designated bank account by the 28th day of the third month following each sale. It also mandates a fixed rate for converting these funds to Rufiyaa, disregarding market fluctuations. Moosa argued that the one-size-fits-all approach fails to account for the unique operational needs of resorts and the high debt obligations many businesses already carry.
“The loss of investor confidence will have damaging consequences, not only for the tourism sector but for the broader economic landscape of the Maldives,” Moosa warned, urging the government to suspend the regulation and engage with industry leaders to develop a sustainable framework.
The letter, written on Kuredu Holdings Pvt Ltd letterhead, was also copied to key government entities, including the President’s Office, the People’s Majlis, and the Ministry of Tourism.
The government has yet to respond publicly to his demands, but with mounting pressure from industry stakeholders, further discussions on the regulation may be imminent.
