Universal Enterprises Pvt Ltd, one of the Maldives’ largest hospitality companies, has formally voiced its opposition to the Maldives Monetary Authority’s (MMA) new regulation mandating that resorts convert US$500 per tourist to Maldivian Rufiyaa (MVR) at local banks. In a letter addressed to MMA Governor Ahmed Munawar, Mohamed Umar Maniku, chairman of Universal Enterprises, warned that the regulation could undermine resort operations, investor confidence, and the broader economy.
The regulation, which requires a fixed currency exchange per guest, was described by Maniku as “poorly conceived and inherently unfair to resorts operating in different market segments.” He noted that a majority of operational expenses at high-end resorts are incurred in USD, covering costs such as salaries, maintenance, marketing, and debt repayments, which makes the enforced currency conversion impractical for properties catering to international clientele.
Maniku’s letter highlighted that the requirement disregards fundamental resort economics and threatens the sustainability of the tourism sector. He argued that a family spending US$1,000 over a four-night stay would need to convert US$2,000 into MVR, a scenario he described as unfeasible.
This latest criticism follows similar concerns raised by other prominent figures in the Maldives’ tourism sector. Mohamed Moosa, another major player in the industry who chairs Crown & Champa Resorts, which operates several high-end resorts across the Maldives, has also publicly opposed the regulation, citing its adverse effects on tourism and the economy. Both Moosa and Maniku are among the country’s most influential businessmen, with investments extending beyond tourism into finance, healthcare, and other critical sectors. Their companies have even invested millions into government T-bills, showcasing their significant economic impact.
The letter, issued on Universal Enterprises letterhead, was also copied to the President’s Office, the People’s Majlis, and the Ministry of Tourism. Universal Enterprises owns a portfolio of renowned resorts, including Kurumba Maldives and Baros Maldives, which have played a pivotal role in establishing the Maldives as a global luxury tourism destination.
Maniku urged the MMA to reconsider the policy, advocating for a solution that balances industry needs with government objectives. “As an industry, we stand ready to support the government in its objectives, but any policy must take into consideration the reality of how the industry operates and be sustainable without causing catastrophic damage to the economy of the country,” he stated in the letter.
The MMA has yet to publicly respond to Universal Enterprises’ concerns or address the growing unease within the tourism sector regarding the regulation.