Financial and economic experts and some tourism entrepreneurs have said it is not a good decision to suddenly force resorts and guesthouses to change dollars per tourist and that there were other ways to address the issue without upsetting the businesses.
The Maldives Monetary Authority (MMA) amended the Foreign Currency Regulation and Money Changing Business Regulation on Tuesday. The changes require tourist facilities to change dollars based on the number of tourists. Category A must change USD 500 for each tourist while Category B must change USD 25 for each tourist.
Category A
- Tourist resorts in Maldives
- Integrated tourist resorts
- Resort hotels
- Hotels (more than 50 rooms)
- Tourist vessels
- Other such places
Category B
- Guesthouses
- Hotels with 50 beds or less)
The Maldives Association of Tourism Industries (MATI) said on Wednesday that the changes were brought without consultation with relevant stakeholders.
Experts who spoke with Adhadhu said such major decisions cannot be resolved by rules announced overnight. They said discussions must be held at various levels before reaching a decision.
A financial expert with 25 years of experience said authorities must explain why the rich should keep their money in the Maldives to boost the country's foreign currency reserves and it should be not done "with a gun to their heads."
"They are entrepreneurs. They have to be explained why they need to keep the money. They should get benefits. They should have the guarantee that their accounts will not be frozen for political reasons," the expert said.
He said businesses get better benefits from keeping their dollars in other countries, but that can be changed. He believes authorities must discuss with the businesses and offer a good interest rate.
"Then they will keep dollars in Maldives instead of Singapore, New Zealand and Switzerland," the expert added.
Another expert noted that Maldives Airports Company Limited (MACL) receives about USD 200 million and Maldives Industrial Fisheries Company (MIFCO) receives about USD 60 million annually.
He said the MMA could purchase that money and circulate it through the banking system to find a solution to the dollar shortage.
Some resort operators said that the State Trading Organization (STO) currently sells oil to some resorts in Maldivian Rufiyaa and changing the transaction to dollars could also increase dollar revenue.
"There are so many such things that can be done. I told them [government officials] too," one person said.
Resort operators believe the rules change announced by MMA are difficult to implement and cannot be implemented fairly.
Experts also feel the MMA's decision is contrary to the government's business and economic policy.
"Economic Minister [Mohamed] Saeed says the Maldives has very liberal economic policies. However, the new MMA rules are contrary to that. So I believe both the Finance Minister and the Economic Minister should consult [with the industry] to find a solution," an expert told Adhadhu.
Some believe that the decision will reduce investor interest in Maldives.
