MMA Opens Draft Bill for Public Comment on Tourism Forex Regulation Changes

The Maldives Monetary Authority (MMA) has opened a draft bill for public comment, which proposes changes to the country’s tourism foreign exchange regulations. 

The ‘Foreign Currency Bill’ requires businesses in the tourism sector to exchange a specified amount of foreign currency at local banks. Under the bill, resorts, hotels, and tourist vessels (Category A) must exchange USD 500 per guest per month, while guesthouses (Category B) must exchange USD 25 per guest per month. 

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The bill also clarifies that, unless specified by law, Maldivians will not be required to pay in foreign currency for goods or services within the Maldives.

In response to concerns raised by tourism industry leaders, the bill introduces a new provision for businesses with annual revenues of at least USD 20 million, which would require them to deposit their foreign currency earnings into a local bank account, with no more than 25% of the income to be exchanged. 

The bill also lists exemptions from these exchange requirements, including guests staying less than 24 hours, children under the age of 2, and guests on complimentary offers.

Additionally, tourist hotels on inhabited islands, regardless of size, will now fall into Category B, requiring them to exchange USD 25 per guest per month. Tourist vessels registered abroad are exempt from the regulations.

The general public can submit their opinions on the bill until 14:00 on Sunday, December 1st.

Tourism industry leaders previously voiced concerns about the existing foreign exchange regulations, with some claiming they were unable to comply. 

However, President Dr Mohamed Muizzu had earlier stated that no changes would be made, and all tourism businesses must comply with the current regulations. The MMA is now seeking public feedback on the draft bill before finalising the changes.