Tourism Establishments to Lose USD 500-Per-Tourist Currency Exchange Option Under Proposed Amendment

Tourism establishments classified under Category A will be required to exchange 20 per cent of their total monthly foreign currency revenue into Maldivian rufiyaa under a proposed amendment, removing the option to exchange USD 500 per tourist.

The amendment proposes changes to the foreign currency exchange requirements for tourism establishments, requiring all Category-A establishments to exchange 20 per cent of their total monthly foreign currency revenue.

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Currently, the law requires businesses receiving more than USD 15 million annually to exchange 20 per cent of their foreign currency revenue. The MMA now proposes raising this threshold to USD 25 million.

According to the MMA, the amendments are being made because the USD 500-per-tourist option creates a disparity between the amounts of foreign currency exchanged by luxury resorts and other resorts.

The two-option system was introduced through a bill passed in December 2024. The bill, drafted by the Maldives Monetary Authority (MMA) on behalf of the government, applies the requirements to resorts, guesthouses, hotels and safari vessels.

The existing law also allows resorts facing financial difficulties to request a reduction in the 20 per cent exchange requirement. Establishments seeking such an exemption must demonstrate financial hardship to the MMA.

Meanwhile, the proposed amendment also sets a lower requirement for businesses that are fully owned by Maldivians. Such businesses will be required to exchange seven per cent of their total monthly foreign currency revenue.

The proposed changes would therefore remove the USD 500-per-tourist option for Category-A tourism establishments and make the percentage-based requirement mandatory.