The central bank, MMA, announced today that all resorts except one have registered under the regulation requiring resorts to exchange dollars they receive through banks.
MMA stated that 173 resorts have registered under the foreign currency regulation. Currently, there are 174 resorts operating in the Maldives.
The regulation came into effect on October 1. Even after that, those who register for TGST are given a 30-day period by MMA to register. Registration under the foreign currency regulation must be done through a special portal designated by MMA. Resorts must include their information on this portal.
MMA said that some resorts have filed complaints regarding the regulation. However, the number of resorts that have complained is not yet clear.
According to the new regulation published by the central bank MMA, all businesses in the tourism sector must exchange a specified amount through banks.
Category “A” includes resorts, hotels, and tourist vessels. Entities in this category are required to deposit $500 per tourist into a Maldivian bank. Category “B” includes guesthouses, which must deposit and exchange $25 per tourist each month through a bank.
Under this regulation, dollar exchanges must begin from late January next year. In January, the amount to be exchanged will be based on the number of tourists who visited the resort in October.
MMA introduced this change to the regulation to increase the proportion of foreign currency entering the Maldivian banking system and to find a way to increase the proportion of foreign currency provided by the banking system to businesses and the general public.
In 2019, the tourism sector exchanged $153 million through Maldivian banks. However, last year, this amount decreased to $68 million. This represents only three percent of the total tourism revenue.
With the new change, about 15 percent of the total revenue from the tourism sector is mandated to be exchanged through banks.
