President Muizzu Assures Tourism Sector New Forex Law Won't Affect Operations

President Dr. Mohamed Muizzu has assured resort operators that the newly ratified amendments to the Foreign Exchange Act will not disrupt the operational costs or management of tourism properties. Speaking after signing the government-sponsored bill into law, the President emphasized that the policy shift followed rigorous technical evaluations by industry experts to ensure it remains feasible for the hospitality sector. The updated legislation shifts the requirements for Category-A tourism establishments. Under the previous framework, resorts were required to exchange either USD 500 per month for every arriving tourist or 20 percent of their total revenue. The new law mandates that these establishments now convert 40 percent of their total monthly foreign currency revenue into Maldivian Rufiyaa (MVR). Addressing potential concerns from the industry, President Muizzu stated that statistical data confirms the new threshold is manageable. He explained that after deducting loans, salaries, and general expenses, resorts maintain sufficient liquidity to meet the 40 percent requirement. "The numbers show that this is not something that will cause difficulty to any resort," the President stated, adding that the move is designed for the broader benefit of Maldivian citizens. The policy aims to address a significant gap in the domestic banking system. While the tourism sector generated USD 5.6 billion last year, only 21 percent of the USD 3.8 billion that entered the banking system was actually exchanged. By increasing this share, the government intends to stabilize the national economy and secure more foreign currency reserves. President Muizzu urged resort operators to view the transition as a vital national responsibility. He noted that the increased reserves will directly support public welfare by facilitating the Telegraphic Transfers (TTs) necessary to import essential goods into the country. The administration maintains that the primary objective of the amended Act is to enhance public service delivery and drive positive economic change for all Maldivians.