The Foreign Exchange Bill, which establishes new rules mandating that foreign exchange earners in the tourism industry convert a percentage of their foreign exchange profits to Maldivian Rufiyaa, was ratified by President Mohamed Muizzu on Saturday.
On 12th December 2024, the bill was approved by the parliament. Important provisions of the law include:
- Category A establishments (resorts): Resorts can either exchange $500 per tourist or 20% of their total revenue in foreign currency
- Category B establishments (guesthouses, liveaboards, hotels): Guesthouses and other similar establishments have the option to exchange $25 per tourist or 20% of their foreign currency earnings
- Other entities receiving significant foreign exchange: Businesses that earned at least $15 million in foreign currency over the past year must exchange 20% of their foreign exchange income
According to the law, minors under the age of twelve are exempt from counting as tourists for determining retention requirements.
Among the modifications proposed by the finance committee were clauses allowing for concessions meant to make compliance easier. Some interested parties, however, are worried that the concessions would not be applicable consistently to all kinds of resorts.
Four parties provided written comments on the law:
- Maldives Association of Tourism and Travel Operators (MATATO)
- Maldives Monetary Authority (MMA)
- Kanifushi Investment
- Maldives Association of Tourism Industry (MATI)
The initial bill to formalize the new foreign exchange transaction regulations that were announced in October of last year was produced by MMA.
More than 50 resorts have notified the MMA that they will not be complying with the October regulations requiring them to swap $500 for each visitor without any other choice. Concerns have been raised by stakeholders regarding the practicality and equity of the regulation’s provisions, especially with regard to various resort types.
