Resorts exchanged only MVR 68 million with banks: MMA

Sep 25, 2024, 6:22 AM
A resort in Maldives. -- Photo: Adhadhu

A resort in Maldives. -- Photo: Adhadhu

Resorts exchanged only MVR 68 million from the money they deposited in Maldivian banks last year, the Maldives Monetary Authority (MMA) said on Tuesday.

According to the central bank, resorts generated USD 4.5 billion in revenue last year, out of which only USD 2.3 billion or 52 percent was deposited in banks in Maldives.

Only three percent of the money deposited by the resorts in the banks was exchanged. That is just 1.5 percent of the total revenue generated by the resorts.

Other figures shared by the MMA show that in 2019, the year before the Covid Pandemic, resorts generated USD 3.4 billion in revenue, out of which USD 2.5 billion or 74 percent was deposited in Maldivian banks.

The revenue increased by 34 percent four years later, but bank deposits were lower. Revenue increased by USD 1.1 billion during the period, while bank deposits decreased by USD 200 million.

Even in 2019, just USD 152.5 million of the dollars deposited by resorts were exchanged in Maldivian banks. That is six percent of the deposit.

Due to the decrease in dollar deposits from resorts, banks are increasingly more dependent on MMA to raise dollars. In 2019, the MMA disbursed USD 376.6 million to banks compared to USD 480.1 million last year, which is a 27 percent increase.

Despite low dollar deposits by resorts, the foreign exchange deposits in banks increased from USD 1.2 billion to USD 1.8 billion from 2019 at the end of last year. This is an increase of 45 percent.

The root cause of the foreign exchange crisis facing the Maldives now is also the problem of taking dollars deposited in banks as cash and selling them in the black market at higher rates.

Comments

Read More

Latest News

EyeCare offers 20 percent discount to mark World Sight Day

To celebrate World Sight Day, EyeCare is offering a 20 percent discount on selected frames with the purchase of prescription lenses through October. Available at all outlets, the promotion aligns with the "Love Your Eyes" theme to encourage eye health. Professionals are on hand to help customers choose the best options for their lifestyle.

Dhiraagu Maldives Junior Open to begin on December 13

Registration is open for the Dhiraagu Maldives Junior Open 2026, a badminton tournament running from December 13 to 19 in Malé. The event features various youth age groups and a Para category to foster local and international talent. Interested players must register by November 25 to compete in this endorsed sporting event.

MTCC has 6700 employees, most positions are contract-based

MTCC reports a workforce of 6,700 employees, with only 2,500 being permanent staff. Following a merger with the Road Development Corporation, the company’s headcount will grow by over 4,000, establishing a presence on every inhabited island. This expansion comes amid criticism over rapid hiring practices within state-owned enterprises.

Moody’s upgrades Maldives credit rating to Caa1

Moody’s has upgraded the Maldives' credit rating from Caa2 to Caa1 with a stable outlook, citing a reduced risk of default after successful debt payments. While the upgrade restores the rating to previous levels, the agency warns of a rising budget deficit and a high debt-to-GDP ratio that remains above 100 percent.

Board appointed for new Awqaf Investment company

The Maldives has formed the board for Maldives Awqaf Investment, a new state-owned enterprise led by Chairperson Izzuddin Adnan. The company will manage mosque construction, renovations, and waqf property development through Shari’ah-compliant activities. It holds an authorized capital of MVR 100 million to ensure project sustainability.

Government revenue exceeds MVR 30 billion

The Maldivian government’s revenue surpassed MVR 30 billion, marking a slight increase over last year despite a slowdown in tourism-related tax growth. While tax revenue rose to MVR 23.8 billion, non-tax revenue saw a decline. Economic experts link the stagnation to a cooling tourism sector, which may impact year-end budgetary targets.

TGST declines due to low tourist arrivals

Maldives' state revenue is declining as Tourism Goods and Services Tax collections fell by MVR 110.5 million due to a drop in visitor arrivals. Disruptions in Middle Eastern air travel have slowed tourism momentum since the second quarter. It is now unlikely the country will meet its annual target of 2.4 million tourists.

Newsletter

Get the latest news delivered straight to your inbox