President Dr. Mohamed Muizzu has named Mohamed Khaleel, his tourism advisor and a prominent figure in the Maldivian hospitality industry, to the Economic Council as debates intensify over a dollar exchange regulation impacting the tourism sector.
Khaleel, a key player in the industry as the Managing Director of Pulse Hotels and Resorts and a stakeholder in Reollo Group and Manta Air, joins the council amid mounting resistance to the Maldives Monetary Authority’s (MMA) directive requiring tourism businesses to exchange US dollars through local banks.
The MMA policy, intended to bolster foreign exchange reserves and ensure economic stability, has faced sharp criticism from resort owners, including Pulse Hotels, which recently declared it would not comply. Multiple appeals have been made to the MMA and the President’s Office, with stakeholders expressing fears the regulation could disrupt resort operations and create cash flow challenges.
President Muizzu, speaking during a ceremony marking the first year of his administration, insisted that compliance with the regulation would lead to increased flexibility for the sector. He stated that the government would raise limits on telegraphic transfers for importing essential goods and enhance credit card limits to provide further support for businesses.
The policy has polarised opinions within the industry, with proponents highlighting its potential to stabilise the economy while detractors warn of its impact on business flexibility and profitability.
As Khaleel steps into his role on the Economic Council, his influence will likely be pivotal in shaping the administration’s economic strategies. Known for his leadership in high-end tourism ventures, his appointment signals a possible recalibration of government priorities to balance policy objectives with industry concerns.
The coming months will test the government’s ability to navigate these economic waters, with the tourism industry watching closely for signals of compromise or further contention.
