The Maldives tourism sector has made a substantial contribution to the national economy, with USD 150 million remitted to local banks so far this year, President Dr Mohamed Muizzu revealed in his latest address to the nation. Speaking during the “Rayyithunnaa Eku” [With Citizens] podcast organized by the President’s Office, Dr Muizzu emphasized the success of foreign exchange regulatory compliance within the tourism industry, reporting that approximately 95 percent of tourism service providers are fulfilling their remittance obligations.
According to the President, the strong rate of compliance represents a 40 percent increase in dollar remittances compared to previous periods. He also stated that ongoing efforts are focused on bringing the remaining five percent into full compliance, ensuring that all operators support the country’s monetary stability. The tourism sector, a vital pillar of the Maldivian economy, continues to generate increasing revenue, contributing positively to the government’s fiscal targets.
Under the current Foreign Exchange Regulation, tourism businesses are required to remit a fixed amount to local banks for every visiting tourist. Resorts are required to deposit either USD 500 per tourist or 20 percent of their gross monthly income, while guesthouses must deposit either USD 25 per tourist or 20 percent of their monthly revenue. These policies ensure that foreign exchange earnings directly benefit the national economy.
Recent statistics from the Maldives Monetary Authority (MMA) indicate that this boost in foreign currency inflow has increased the country’s usable reserves to USD 179 million, with total reserves now standing at USD 832 million. This improvement in reserve levels strengthens the Maldives’ financial resilience and capacity to meet future obligations.
President Muizzu also outlined a series of financial reforms designed to further ease foreign currency access for the public. These include increasing the bank allocation for travelers from USD 500 to USD 1,000, doubling credit card limits, and enhancing access to Telegraphic Transfers (TTs). The President expressed optimism that these steps, along with the responsible management of the tourism sector, would gradually lead to a decline in the parallel market exchange rate and reduce dependence on informal currency sources by government-owned companies.
With tourism continuing to drive growth and support the national economy, the Maldives remains a preferred destination not only for its natural beauty but also for its stable and forward-looking economic governance.
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