The Tourism Employees Association of Maldives (TEAM) has called for consultations over the government’s decision to require resorts to exchange 40 percent of their foreign currency earnings through Maldivian banks.
In a statement issued last night, TEAM said the policy could result in resort employees being paid their salaries and service charges in rufiyaa instead of USD.
The association said it was concerned that the government would proceed with the policy without adequately considering its impact on tourism sector employees.
“Any action affecting the salaries and service charges of resort employees should be taken as a last resort and after full consultation with employees and employee representatives,” TEAM said.
The association said requiring resorts to exchange 40 percent of their foreign currency earnings through local banks could have an adverse impact on employees, potentially reducing their income and creating an “extremely low income” and financially unsustainable situation for workers.
TEAM said tourism sector employees should not be made to bear the burden of measures introduced to address the country’s foreign exchange shortage.
“This union federation will not accept any attempt to place the burden and responsibility of the foreign exchange crisis on the shoulders of the tourism sector,” the association said.
TEAM said it was unfair for tourism workers to suffer the consequences of measures introduced to address the foreign exchange crisis.
The Maldives Association of Tourism Industry (MATI) and the Resort Owners Association have also expressed concern over the proposed policy.
In a statement issued last night, the associations said resorts could not afford to exchange 40 percent of their foreign currency revenue through local banks because they have significant expenses that must be paid in USD, including fuel, salaries, service charges and taxes such as tourism goods and services tax, green tax, withholding tax and income tax.
Maldives Monetary Authority (MMA) Governor Ahmed Munawar said at a press conference at the President’s Office on Monday that he would propose amendments to the Foreign Exchange Act to remove the option for resorts to deposit USD 500 per tourist and instead require them to deposit 40 percent of their foreign currency revenue into Maldivian banks each month.
