The Maldives Association of Tourism Industry (MATI) has criticised the Maldives Monetary Authority (MMA) for implementing amendments to the Foreign Exchange Regulations without addressing concerns raised by the tourism industry.
In a statement issued on Wednesday, MATI expressed disappointment, stating that despite consultations with stakeholders, the MMA had not responded to any of the issues the association had highlighted regarding the proposed changes.
“During the meeting with MMA, MATI raised several concerns regarding the new foreign exchange regulations. However, these were not addressed before the amendments were gazetted,” MATI said in the statement.
Sources indicated that a meeting with stakeholders, including representatives from the tourism sector, was held last week. MATI believes that more extensive discussions should have been conducted before making such a significant policy change.
The amended regulations, which were gazetted on Tuesday, require tourism establishments to exchange foreign currency at fixed amounts per tourist, marking the end of a 37-year-old foreign exchange rule. Under the new rules, all transactions within the Maldives must be conducted in Maldivian Rufiyaa (MVR), with certain exceptions for businesses handling foreign currency, such as resorts and duty-free shops.
Tourism businesses are now required to register with the MMA within 30 days and report their foreign exchange earnings. Additionally, they must deposit foreign currency earnings into local banks within three months.
One of the most contentious points in the new regulations is the fixed exchange amount, which mandates that resorts, safari boats, and city hotels must exchange at least US$500 per tourist, while smaller hotels and guesthouses must exchange a minimum of US$25 per tourist.
MATI has voiced concern that these fixed amounts may disproportionately affect smaller tourism businesses, such as guesthouses, which are increasingly receiving payments in local currency from tourists.
