Former Economic Minister Fayyaz Ismail has warned that recent government amendments to tax laws and foreign exchange regulations will cause a major downturn in tourism, halting businesses and stagnating the Maldivian economy as a whole.
Concerns are mounting over several changes set to take effect next month, including a 40 percent increase in mandatory foreign currency exchange requirements and the introduction of tax adjustments for foreign tour operators and travel agents under the destination principle. These concerns have been echoed by prominent companies within the Maldivian tourism industry.
In a post on social media X last night, Fayyaz, who previously served as the Chairperson of the main opposition Maldivian Democratic Party (MDP), accused the administration of attacking the tourism industry through its regulatory policies. He stated that these "attacks" are being carried out via sudden and abrupt policy shifts.
"Through consistent policy attacks on the tourism industry, the Maldivian economy is callously and systematically being dismantled," he warned, adding that "we can no longer dismiss the Muizzu administration’s decisions as being driven purely by incompetence."
Fayyaz further asserted that the government's recent measures do not align with international trade standards. He noted that some of these changes could violate international treaties to which the Maldives is a party.
"With a flick of the President’s hand, the decline of Maldivian tourism has begun. The effects of killing our golden goose will not stop at damaging the industry itself. The cascading downturn in our economic activity will ultimately result in the bankruptcy and unemployment of thousands of Maldivian workers and businesses," he wrote.
Fayyaz called on the government to refrain from implementing policies in haste. He further urged the administration to listen to the stakeholders expressing concern and to revise the current approach.
"This is why we need a wholesale rethink of our system of governance. No one person should wield the power to destroy the Nation," said Fayyaz, who has been advocating for constitutional reforms.
