TEAM blames govt policies for Maldives’ dollar crisis

The Tourism Employees Association of Maldives (TEAM) has said the Maldives is not receiving dollars because of the government’s “foolish policies” and not because of tourism workers.

In a statement issued on Tuesday, TEAM said the government’s decision to increase the foreign exchange requirement of resorts to 40 percent has raised serious concerns among tourism employees. Following the decision, some resort operators have said staff salaries and service charges may be paid in Maldivian Rufiyaa instead of dollars.

TEAM said such a change would result in extremely low income for employees and create a financially unbearable burden. The association said the country’s access to dollars has been restricted due to the government’s “foolish policies and political decisions,” and stressed that workers should not be made to pay for the situation.

The association’s statement called for several measures. TEAM urged the government to reduce wasteful spending, cut political staff, temporarily reduce embassies and missions abroad, and better manage foreign exchange generated by tourism.

TEAM also called on the government not to introduce policies that would reduce the income of tourism workers.

Parliament passed the Foreign Exchange Bill on Wednesday, prohibiting the publication of black-market dollar rates and banning the sale of foreign currency above the MMA-mandated rate. The bill also requires resorts to deposit 40 percent of their dollar earnings into Maldivian banks.

The bill, submitted by PNC MP Abdul Sattar Mohamed (Sato) on behalf of the government, initially required resorts to pay 20 percent of their revenue at USD 500 per tourist. After the committee completed its review and forwarded the bill to Parliament, it was sent back for further amendments.

The Maldives Association of Tourism Industry (MATI) has also expressed concern over the issue.