Central bank Maldives Monetary Authority (MMA) has opened up for public comments a draft bill which includes a number of changes to the tourism forex regulation.
Central bank Maldives Monetary Authority (MMA) has opened up for public comments a draft bill which includes a number of changes to the tourism forex regulation.
As per the 'Foreign Currency Bill' opened for comments by MMA, all tourism sector businesses must exchange a set amount at local banks.
Category A includes resorts, hotels and tourist vessels. Those in this category are required to exchange USD 500 at a local bank per guest accommodated at the establishment each month.
Category B includes guesthouses, who must exchange USD 25 per guest at a local bank each month.
As per the bill, unless in instances where the law has determined foreign currency transactions, it will not be compulsory to pay in foreign currency for any goods or services obtained by a Maldivian in Maldives.
There are also some changes brought in relation to concerns raised by tourism industry leaders about the existing regulations. As such, businesses who receive a minimum of USD 20 million per year should deposit their revenue in an account in a local bank. This is to be done under a regulation where no higher than 25 percent of foreign currency income is to be exchanged.
Also included is a list of those who are exempt from these conditions. These are:
- Guests who stay less than 24 hours
- Children under the age of 2 years
- Guests who stay under complimentary offers
The other major change in the bill is that tourist hotels on inhabited islands, regardless of whether they have more or less than 50 hotels, will now fall into Category B, which then requires them to exchange USD 25 per guest.
Tourist vessels registered abroad are also exempt.
Major leaders in the tourism industry have earlier voiced reservations about the existing forex exchange regulations, even sending letters to MMA stating they cannot comply. However, President Dr Mohamed Muizzu asserted at the time that no changes would be brought, and all tourism businesses must comply with the regulations as is.
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