Eleven resorts operating in the Maldives have decided to pay service charges in Maldivian Rufiyaa (MVR).

Tourism Employees Association of Maldives (TEAM) General Secretary Mauroof Zakir told Adhadhu that they had seen circulars from 11 resorts stating their decision to pay service charges in dollars.

“We have received circulars from 11 resorts. We are identifying the resorts that have decided to pay service charges in MVR, and we will announce them very soon,” he said.

As the law stipulates that service charges must be paid in dollars, we are telling employees that this cannot be done, he added.

Adhadhu has obtained a circular issued by Fushifaru Resort on December 25, which states that the service charge for December will be paid in MVR.

The resort justified its decision by citing the foreign currency exchange law, according to the circular.

Due to the requirement to exchange a specified amount of dollars per tourist, as stipulated by the Foreign Exchange Act, Pulse Company had earlier informed its employees that salaries and service charges would be paid in MVR. Other companies have issued similar notices to their employees.

Under the Foreign Exchange Act, starting next year, Category A resorts will be required to pay $500 per tourist, or 20% of their monthly income, into foreign currency.

This change has raised concerns among resort employees, as many fear that service charges will increasingly be paid in MVR.