The central bank, Maldives Monetary Authority (MMA) has reported that nearly all resorts in the Maldives have registered under a new policy mandating tourism establishments to convert a portion of their US dollar revenue through a local bank.
MMA introduced the policy to address the issue of dollar shortage in Maldivian banks. As per the policy, Category A resorts, hotels, and tourist vessels are required to deposit and convert $500 at a local bank for each guest check-in. Meanwhile, Category B establishments such as guest houses are required to deposit $25 per guest. The new policy came into effect on October 1.
The central bank established an online registration portal for compliance, and 173 out of 174 Maldivian resorts operating in the Maldives have signed up. This information was disclosed following a request by Mohamed Moosa (Uchchu), owner of Champa Brothers, one of the Maldives' largest tourism companies, to suspend the new policy.
The central bank acknowledged it had received complaints from some resorts regarding the policy. However, the number of complaints was not disclosed.
Resistance to the policy has been particularly strong among senior figures in the Maldives Association of Tourism Industry (MATI). However, the majority of the public believes the decision is beneficial for the country, and a necessary step to revitalize the country's economy.
The policy is expected to add dollars to the banking system and boost the country's reserves. Experts say the move is expected to strengthen the Maldivian Rufiyaa and support the stability of the national economy.
