Tourism service providers have deposited over USD 25 million in banks as of Monday, complying with the Foreign Exchange Act, President Dr Mohamed Muizzu said.
The Act came into effect on January 1 this year. Maldives Monetary Authority (MMA) formulated regulations in October last year, requiring tourism operators to deposit a specified amount per tourist in local banks. This includes deposits for tourists who visited during the last three months of 2023.
Speaking to the residents in Haa Dhaalu atoll Hoarafushi during his tour of the atoll, President Muizzu stated that nearly all resorts have fully adhered to the new regulations. He said that according to the latest update from the MMA Governor, over USD 25 million had been deposited in banks.
President Muizzu said that no exemptions would be granted to those required to deposit foreign currency under the regulations, adding that proper implementation of this policy would significantly benefit the economy.
According to the regulation, resorts must deposit USD 500 per tourist in a local bank, while guesthouses are required to deposit USD 25 per tourist.
The Foreign Exchange Act also provides an alternative option for Category A resorts, allowing them to deposit either USD 500 per tourist or 20 percent of their gross monthly income. Similarly, under Category B, guesthouses can opt to deposit either USD 25 per tourist or 20 percent of their monthly income.
The deadline for the first phase of deposits under the new regulations expired yesterday. While the exact amount deposited is yet to be officially announced, MMA has estimated that total deposits during this period would range between USD 30 million and USD 40 million.