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An event held by MATI -

MALÉ: The Maldives Association of Tourism Industry (MATI) has voiced serious concerns regarding the government’s proposal to increase mandatory foreign currency conversion for Category A establishments, including resorts, to 40 percent of total sales.

The announcement followed a press conference held by the President’s Office alongside high-level cabinet ministers and Maldives Monetary Authority (MMA) Governor Ahmed Munawar. Authorities cited law enforcement investigations into illegal foreign exchange trading as justification for the steep increase.

MATI stated that it holds no knowledge of any unlawful foreign exchange activities by resort operators and stressed that isolated allegations under investigation should not justify sweeping regulations across the entire tourism sector.

Key highlights from MATI’s statement include:

• Executive Meeting: MATI’s Executive Board was summoned to an urgent meeting at the President’s Office on August 23 to discuss alleged parallel market trading by certain operators.

• Concerns Over Viability: The proposed 40 percent conversion rate is unviable because resorts already pay heavy foreign exchange expenses, including fuel, foreign loans, land rent, guest transfers, taxes, and salaries.

• Shift in Proposals: The new 40 percent proposal follows a recent MMA suggestion of a uniform 20 percent requirement, whereas MATI advocated for a cap of 10 percent along side resolving long-pending exemption requests.

• Industry Representation: MATI represents 146 out of 200 operational resorts in the Maldives, accounting for the country’s largest investors and foreign currency earners.

MATI reaffirmed its commitment to constructive dialogue with the government and the MMA to find a fair, sustainable solution based on facts rather than broad industry measures.