The Maldives Association of Tourism Industry (MATI) has expressed dissatisfaction with the Maldives Monetary Authority (MMA), accusing the central bank of disregarding concerns raised during the formulation of new regulations that impact the country’s tourism sector. In a press release issued on Wednesday, MATI stated that the regulations were introduced without adequate consultation, contrary to what the MMA claimed in its announcement.
On Tuesday, the MMA introduced two regulations: the Foreign Currency Regulation and the Money Changing Business Regulation. These new rules mandate that all tourism revenues be deposited in the Maldives and enforce a compulsory exchange of US dollars by tourism establishments.
MATI clarified that during a meeting with the MMA, the association had rejected several proposals put forward by the Authority regarding the Foreign Currency Regulation. However, MATI noted that these concerns were not reflected in the final version of the regulation, which was published without any revisions based on their feedback.
The association assured that despite these disagreements, it remains committed to working collaboratively with relevant authorities to support the nation’s economy.
The newly introduced regulations aim to address the Maldives’ ongoing foreign currency challenges. Under the new rules, ‘Category A’ tourist establishments—comprising resorts, integrated tourist resorts, and resort hotels—are required to exchange USD 500 per tourist for all monthly arrivals. This exchange must be completed by the 28th day of the third month following each respective month. Meanwhile, ‘Category B’ establishments, such as guesthouses and smaller hotels on residential islands, must exchange USD 25 per tourist.
However, stakeholders within the tourism sector, particularly those from guesthouses and smaller resorts, have raised concerns about the potential impact of these measures. Economists and industry representatives have warned that the USD rate imposed on each tourist may place significant financial strain on lower-tier establishments.
