The Maldives Association of Tourism Industry (MATI) has said that forcing resorts to convert 40 percent of their gross revenue into Maldivian rufiyaa is not sustainable for the tourism industry.

In a statement issued by MATI, it noted that resorts have to make large dollar-denominated payments for fuel, staff salaries, service charge, taxes, and foreign loans. Therefore, converting such a large portion of revenue would create serious difficulties in running these businesses, the association said.

MATI also stated that in an earlier meeting held with the MMA (Maldives Monetary Authority) this month, discussions were based on a 20 percent conversion rate, and that suddenly raising the figure to 40 percent without any consultation is unacceptable.

Regarding allegations by investigative agencies that some resorts are dealing in dollars on the black market and inflating the exchange rate, MATI said the association has not received any information indicating such activity, and that members are always urged to comply with laws and regulations. It further stated that setting policies affecting the entire industry based on allegations against individual operators is not a fair approach, and that linking the black market issue solely to resorts is contrary to the facts.

MATI, which represents 146 of the 200 resorts operating in the Maldives, said the association stands ready to engage in sincere discussions with the government and the MMA on national economic issues.

Notably, in the first year of the foreign currency law taking effect, the tourism sector converted 1.7 billion dollars through banks, yet the price of the dollar did not decrease. Currently, the dollar stands at 23 rufiyaa.