'Champa' Mohamed Moosa requests suspension of tourism income exchange regulation

One of the leading tourism sector businessmen in the Maldives, 'Champa Uhchu' Mohamed Manik has requested the government to suspend the regulations they set in place which stipulate that tourism foreign income must be deposited in local banks.

A letter sent to the Maldives Monetary Authority by Moosa raises the concern that depositing USD 500 per each tourist that stays at a resort would result in major loss to businesses.

The letter, sent on Moosa's shareholding company Kurehdhoo Holdings, said that it is unjust to take such a measure targeting businesses in the tourism sector.

He called for the decision to be reviewed, citing that the regulations had been set in place without sufficient consultation with industry leaders.

Main points highlighted in Moosa's letter

- Sufficient consultation and discussion was not held with industry professionals when considering the gravity of the decision taken

- Implementation of the regulations from the day it was published in the government gazette without allowing a reasonable window for businesses to adjust to the change

- The regulation failing to consider the duration tourists stay at a resort

- Having a blanket standard for all resorts not being financially just

- Guests who come to resorts under special circumstances not being made exempt from the regulation. As an example, the letter highlighted those who visit on fame trips or sponsor trips

- Being forced to decrease costs, such as that on staff welfare

- The regulations being unclear about the stipulations for many resort which have investment prices of over USD 70 million and have debts

Moosa, in his letter, assured that as having been involved in the tourism industry for over 40 years, he will continue to provide assistance to the government in important issues.

He pointed out that tourism businesses already pay large amounts in taxes, fees and rent, and as such it is not sustainable for these businesses to also work within the MMA guidelines.

He voiced concerns that the regulations will lead to loss of investor confidence, affect tourism industry investors, and subsequently have a negative impact on the economy.