MATI: Foreign exchange regulations formulated without addressing concerns

The Maldives Association of Tourism Industry (MATI) has accused the Maldives Monetary Authority (MMA) of failing to address any of the concerns raised by the association when it formulated key regulations that will have a significant impact on the revenues of tourist establishment.

On Tuesday, the MMA published two new regulations the Regulation on Foreign Currency and the Regulation on Money Changing Business. It requires all tourism revenues to be deposited in the Maldives and imposes a mandatory surrender of USD for each tourist.

But in a statement on Wednesday afternoon, MATI said that though MMA’s press statement indicates that the regulations were formulated after consultation with relevant stakeholders, it did not occur as stated.

MATI said that during its meeting with the MMA, the association said that the proposals presented by the central bank for inclusion in the new Foreign Currency Regulation were not acceptable to association.

“We note that when the regulation was gazetted, none of the concerns raised by this association were addressed by the MMA,” it said.

MATI also provided assurance that it will “always remain committed to cooperating in any matter that the country faces.”

The new regulations published on Tuesday seek to address the Maldives’ foreign currency crisis.

It requires ‘Category A’ tourist establishments - tourist resorts, integrated tourist resorts and resort hotels – to exchange USD from a local bank at the rate of USD 500 per tourist for all monthly arrivals before the 28th day of the third month following each respective month.

Meanwhile, ‘Category B’ tourist establishments – tourist guesthouses and hotels in residential islands with registered rooms of 50 or under - must exchange USD in the same manner, but at the rate of USD 25 per tourist.

Tourist establishments can apply to exchange USD at a lower rate under certain circumstances.

The decision to impose a USD rate per tourist has sparked concern from tourism stakeholders and economists, especially over the significant impact it could have on guesthouses and lower-tier resorts.