Maldives resorts face financial strain from strict currency exchange rules
The Maldives’ tourism industry which has still not fully recovered from the COVID epidemic is facing a significant hurdle due to a recent regulatory requirement imposed by the Maldives Monetary Authority (MMA) that mandates the exchange of USD 500 per tourist. This rigid policy has sparked widespread concern among resort owners, who argue that it […]
Tourism tax increases expected to boost Maldives’ revenue by MVR 2.8 billion
Maldives government expects to collect an additional MVR 2.8 billion in revenue following the approval of bills aimed at increasing tourism-related taxes, including the Tourism Goods and Services Tax (TGST). Parliament is set to resume Monday, where these changes will be discussed. The proposed changes to the TGST and green tax rates include: TGST: Increase […]
Maldives to increase tourism GST to 17%, double Green Tax
Maldives government is set to propose an amendment on Monday to increase the Tourism Goods and Services Tax (TGST) on tourists to 17% and double the green tax. The amendments to the tax act will be introduced in parliament Monday. The proposed changes include raising the TGST rate from 16% to 17%, effective from June […]
Maldives to increase main airport taxes from December 2024
Maldives government has put forward a proposal to increase the taxes levied on passengers using Velana International Airport (VIA). The proposed amendments to the Airport Departures Tax Act are set to be presented to the parliament in its upcoming session, which begins Monday. The amendments include adjustments to the departure fees for various passenger categories. […]
Maldives tourism businesses asked to register with MMA under new foreign exchange regulations
The Maldives Monetary Authority (MMA) has asked businesses in the tourism industry to register under the central bank’s new foreign exchange regulations. Under the new regulations, all businesses registered with the Maldives Inland Revenue Authority (MIRA) as sellers of goods and services within the tourism sector are required to register with the MMA by the […]
New foreign exchange policy risks collapsing Maldives’ tourism industry, economy
Government’s misguided foreign exchange policy will destroy the economy. The government’s newly announced policy to force tourist resorts to convert US$500 per head into local Maldivian Rufiyaa will spell a disaster for the industry and the economy as a whole. There is a belief amongst certain officials and the general public that Maldives resorts are […]
Maldives requires foreign currency deposits from tourism sector
The Maldives Monetary Authority (MMA) on Tuesday introduced a new regulation requiring all foreign currency income generated by the tourism industry to be deposited in local banks. As per the regulation, businesses active in the tourism industry and registered with the Maldives Inland Revenue Authority (MIRA) are required to re-register with MMA within 30 days. […]
Maldives imposes new regulations on foreign currency exchange, restricts to Maldivians
The Maldives Monetary Authority (MMA) on Tuesday introduced new foreign exchange regulations, replacing a 37-year-old rule. The newly enacted Money Exchange Business Regulations require the establishment of a special company to conduct foreign exchange transactions. Under the new rules, two types of licenses will be issued: Tier-1: A license to trade in foreign exchange. Tier-2: […]
Maldives recovers $5 million debt from tourism businesses
The government has recovered $5 million (MVR 77.1 million) from the tourism industry in the past 17 days, Tourism Minister Ibrahim Faisal said on Saturday. Addressing the nation at the Independence Day celebrations on Friday evening, President Mohamed Muizzu said the state lost $513 million due to the negligence of previous governments. The president said […]
Maldives cuts tourism forecasts amid market, geopolitical changes
The Ministry of Finance in Maldives has revised its tourism growth forecasts downward, reflecting changes in market composition and economic and geopolitical circumstances. According to the Macroeconomic Update, published in late June, in 2023, tourist arrivals reached 1.88 million, surpassing pre-pandemic levels with a 12.1 percent increase compared to 2022. The first three months of […]
Maldives ready for fiscal reforms with SOE restructuring start: Finance minister
The Maldivian government on Monday acknowledged shortcomings in implementing debt-reduction measures and announced a renewed commitment to fiscal reform, starting with a focus on state-owned enterprises (SOEs). Finance Minister Dr Mohamed Shafeeq made the announcement during a discussion on the World Bank report “Scaling Back and Rebuilding Buffers.” Dr Shafeeq admitted that planned reforms from […]
Tourism sector contraction spurs moderation amid Maldives’ fiscal challenges
The Maldives navigated through a year of economic moderation and resilience in 2023. According to the latest Quarterly National Account (QNA) estimates by MMA, the Maldivian economy witnessed a growth rate of 4.0% in 2023, a significant slowdown from the remarkable 13.9% growth recorded in the preceding year. This deceleration, falling short of the initially […]
