Universal Resorts has announced that they will now be paying service charge in Dhivehi Rufiyaa due to challenges faced in operating resorts under the Foreign Currency Act, which stipulates that resorts have to exchange a specified amount of dollars per guest from local banks.

The foreign exchange stipulations for tourism service providers were first brought into effect under a regulation formulated by central bank Maldives Monetary Authority last year. Later, the Foreign Currency Act was ratified.

Under this act, Category A (resorts) must exchange USD 500 per tourist or 20 percent of their monthly revenue in foreign currency and Category B (guesthouses) must exchange USD 25 per tourist or 20 percent of their monthly revenue in foreign currency.

A circular signed by the Chief Operating Officer of Universal Resorts, which operates eight resorts in the Maldives, Visha Mahir, and sent to staff states that despite challenges faced with the law having come into effect in January, the company worked to avoid letting it affect the staff.

However, it has now reached a point where it would be difficult to continue operating the resorts without bringing this change into effect, the circular said.

Hence, from July onwards, service charge will be paid to all staff in Maldivian Rufiyaa, it said.

Staff who do not MVR bank accounts will be assisted in opening accounts by the company's HR Department, they said.

In November last year, Chairman of Universal Enterprises Mohamed Umar Manik (M U Manik) sent a letter to the governor of MMA stating that they cannot comply with the new Tourism Forex Regulations.

Resorts operated by Universal include Kurumba Maldives, Velassaru Maldives, Baros Maldives, Huvafenfushi Maldives, Kuramathi Maldives, Milaidhoo Maldives and Dhigali Maldives.