Tourism sector remits USD 150 million to banks so far: President

President Dr Mohamed Muizzu has announced that tourism service providers have remitted USD 150 million to banks so far this year.

During the podcast "Rayyithunnaa Eku" [With Citizens] hosted by President's Office, President Muizzu stated that dollar remittances to banks have increased by 40 percent compared to previous figures. He highlighted the high level of compliance with dollar remittance regulations, noting that approximately 95 percent of those required to remit dollars to banks are doing so.

"Efforts are underway to include the remaining 5 percent. There is strong cooperation in dollar remittance and the growing revenue from the expanding tourism sector will will enable us to reach our set targets," President Muizzu said.

According to the Foreign Exchange regulation, resorts are required to deposit USD 500 per tourist in a local bank, while guesthouses must deposit USD 25 per tourist. The Foreign Exchange Act also offers an alternative for Category A resorts, allowing them to deposit either USD 500 per tourist or 20 percent of their gross monthly income.

Category B guesthouses can choose to deposit either USD 25 per tourist or 20 percent of their monthly income.

With the increase in dollar remittance, the Maldives usable reserves have increased to USD 179 million, while total reserves stand at USD 832 million, according to statistics released by Maldives Monetary Authority (MMA).

As part of ongoing reforms, President Muizzu announced key measures, including increasing the USD 500 bank rate allocation for travelers to USD 1,000, doubling credit card limits, and expanding Telegraphic Transfer (TT) opportunities.

He also expressed confidence that the dollar exchange rate would decline in the future and that Government-owned companies would reduce their reliance on the black market for foreign currency purchases.