All resorts except for one have registered under the newly formulated tourism foreign exchange income regulation, central bank Maldives Monetary Authority has stated.
All resorts except for one have registered under the newly formulated tourism foreign exchange income regulation, central bank Maldives Monetary Authority has stated.
MMA said tonight that 173 resorts have registered under the regulation. At present, 174 resorts are in operation in the Maldives.
The regulation came into effect from October 1 onwards. Any businesses that registered for TGST after that have also been provided a 30 day window within which to register under the new regulation. Under the Foreign Currency regulations, businesses have to register via a portal set up by the MMA. Details of the resort has to be included in the registration on the portal.
MMA revealed that some resorts have submitted complaints in relation to the regulation. The exact number of resorts which submitted complaints is so far unclear.
The regulation mandates income generated from tourism to be deposited into local banks and to have a certain percentage exchanged via these banks, while the banks are required to sell 60 percent of foreign currency received each week to MMA.
Category A includes resorts, hotels and tourist vessels. Those that fall within this category must deposit USD 500 per guest every month in a local bank.
Category B includes guesthouses, which must deposit USD 25 per guest every month in a local bank.
As per the regulation, dollar deposits must commence from end of January 2025 onwards. In January, the deposits must meet the number of guests the resort accommodated in October.
MMA implemented these regulations in a bid to increase the proportion of foreign currency entering the local banking system as well as that supplied by the banking system to businesses and the public.
In 2019, the tourist sector exchanged a total of USD 153 million in local banks. Last year, the figure was decreased to USD 68 million. This covers only 3 percent of tourism income.
With the new regulation, about 15 percent of tourism income will be exchanged in local banks.
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