The Tourism Employees Association of Maldives (TEAM) has stated that the current dollar shortage facing the country is the result of flawed government policies and political decisions.
The association asserted that there is no justification for resort employees to bear the financial burden of these failures.
The central bank has set a target to ban dollar-denominated salary payments by 2030, alleging that those earning in foreign currency are profiting by exchanging dollars on the black market. Additionally, the government has decided to amend regulations to mandate that resorts convert 40 percent of their foreign currency earnings into local currency.
In a statement, TEAM noted that resorts are already cautioning that if these changes are implemented, they will be forced to pay salaries and service charges in Maldivian Rufiyaa instead of dollars. The association expressed deep concern that the government is pursuing such objectives despite these potential consequences.
"This change will drastically reduce the real income of employees and impose an unbearable financial burden on them. We wish to state that we will not accept any attempt to shift the weight and responsibility of the country's foreign exchange crisis onto the shoulders of tourism sector workers," the TEAM statement read.
TEAM emphasized that there is no logical basis for employees to pay the price for a situation created through no fault of their own. The association further clarified that it does not support a transition to Rufiyaa-based salaries as long as there is no guarantee that employees can access dollars at the official exchange rate.
"If the government can fully guarantee that employees will be able to obtain as much foreign currency as they need at the official rate of MVR 15.42, we do not believe there would be concerns regarding salaries in Rufiyaa. However, without such an assurance, converting dollar earnings into Rufiyaa would cause immense harm to resort workers and the industry as a whole," the statement continued.
The association stressed that any measures affecting the income of resort workers should only be considered as a last resort and following extensive consultation. TEAM also called on the government to reduce its own expenditures as a primary means of addressing the dollar crisis.
