Maldivian Democratic Party (MDP) chairperson, Fayyaz Ismail, has expressed concerns over the impact of new foreign exchange regulations on guesthouses and small and medium enterprises.

The Maldives Monetary Authority (MMA) has introduced a rule requiring all foreign currency earned by the tourism sector to be deposited with a local bank. Under the new regulation, resorts must deposit USD 500 per tourist, while guesthouses are required to deposit USD 25 per tourist.

In a post on X, Fayyaz, who also served as the economy minister in the MDP government, acknowledged that depositing foreign income locally is a significant step in addressing the country’s foreign exchange crisis. However, he raised concerns about the current implementation, stating that guesthouses and low-end resorts could suffer severely under the policy.

Fayyaz suggested that instead of a flat dollar amount per tourist, the government should consider a revenue-based percentage approach. He warned that the current formula could harm small and medium-sized establishments, the liveaboard industry, and future foreign investment.

He called on the government and MMA to engage in discussions with stakeholders to review the policy and reach a more balanced solution.