Month: November 2024

The Maldives Monetary Authority (MMA) has shared a draft bill on foreign currency exchange with various stakeholders, inviting feedback on its provisions. The proposed legislation includes specific exchange requirements, such as resorts exchanging $500 per tourist and guesthouses exchanging $25 per guest, with some exemptions outlined.

Stakeholders have been asked to submit their comments via email by Sunday afternoon.

Currently, under the existing regulations:

• Resorts, liveaboards, and guesthouses with more than 50 rooms (Category A) must exchange $500 per tourist.
• Guesthouses with fewer than 50 rooms (Category B) are required to exchange $25 per guest.

The draft bill introduces significant changes, including a new category for businesses earning $20 million or more annually in foreign currency. These businesses would need to deposit their foreign exchange earnings into a local bank account, with 25% of the revenue allocated for conversion.

Key proposed changes in the bill:

1. New Inclusion for High-Earning Businesses: Businesses generating $20 million or more annually in foreign exchange must deposit these earnings in local bank accounts, converting 25% of the revenue.
2. Category B Adjustments: All guesthouses and liveaboards, regardless of room count, would be classified under Category B, requiring $25 per guest to be exchanged instead of $500.
3. Maintained Resort Requirement: Resorts would still need to exchange $500 per tourist.
4. Exemptions for Certain Tourists: Tourists spending less than 24 hours in the Maldives, children under two years of age, and complimentary guests would not be subject to the exchange requirement.
5. Exemption for Foreign-Registered Tourist Vessels: Tourist vessels registered outside the Maldives would be excluded from the bill.

The $500 per tourist requirement has faced criticism from over 70 resorts, with concerns raised about its impact. Despite this, President Mohamed Muizzu has affirmed his support for maintaining the policy, emphasizing its alignment with public interest and economic priorities.

The Maldives Marketing and Public Relations Corporation (MMPRC/Visit Maldives) organized a special event to honor the Maldives’ remarkable achievements at the World Travel Awards 2024. The Maldives was crowned the World’s Leading Destination for the fifth consecutive year and, for the first time, received the title of the World’s Leading Green Destination. The celebration took place on November 27, 2024, at the Waterfront, Velana International Airport.

The event was graced by the presence of Tourism Minister Ibrahim Faisal, MMPRC CEO and Managing Director Ibrahim Shiuree, and Maldives Airports Company CEO and Managing Director Ibrahim Shareef Mohamed.

Speaking at the event, Ibrahim Shiuree expressed pride in these accolades, emphasizing that they reflect the Maldives’ commitment to delivering outstanding travel experiences while championing sustainable tourism. He also commended the dedication and efforts of industry stakeholders who have continually worked to elevate the Maldives as a premier global destination.

As part of the celebration, new “Maldives signage” was unveiled at Velana International Airport, symbolizing the nation’s achievements and further enhancing its global brand presence.

These prestigious awards, coupled with a steadfast focus on sustainability, reinforce the Maldives’ position as a leading global travel destination. They are expected to play a key role in driving growth and ensuring continued success in the country’s tourism industry

The Maldives has once again claimed the World’s Leading Destination Award at the World Travel Awards, marking its fifth consecutive win.

Tourism Minister Ibrahim Faisal and Shiuree Ibrahim, Managing Director and CEO of the Maldives Marketing and PR Corporation (MMPRC), accepted the prestigious award at a ceremony held in Portugal.

In a post on X, Faisal attributed this remarkable achievement to the dedicated efforts of countless individuals who contributed to the Maldives’ success.

Additionally, the Maldives was honored with the World’s Leading Green Destination Award, further cementing its position as a top global destination.

The Maldives previously secured the World’s Leading Destination title in 2020, 2021, 2022, and 2023.

This accolade is considered the most distinguished award in the World Travel Awards program, which is recognized as the most prestigious and comprehensive platform in the global travel industry.

The Ministry of Tourism has introduced safety standards to minimize accidents during watersports and other tourist activities in the Maldives. These guidelines aim to prevent incidents that have previously resulted in tragedies during water-based and beach-related excursions.

In a circular issued on Thursday to tourism service providers, the ministry announced plans to develop formal regulations for safer practices. Until then, the circular outlines safety measures that must be adhered to by councils, guesthouses, hotels, homestays, tourist vessels, and diving service operators.

Key safety measures include:

• Providing participants with safety information before any watersports activity.
• Ensuring all aquatic equipment meets safety standards and is used for its intended purpose.
• Conducting activities in designated zones specifically marked for each sport.
• Requiring tourists who cannot swim to wear life jackets during watersports.
• Monitoring weather conditions closely, with activities suspended during weather warnings or unsafe conditions identified by instructors.
• Using color-coded flags or surface balloons (white, yellow, orange, red, or green) to signal weather changes.
• Maintaining a means of communication between instructors and the aquatic center for emergency preparedness.
• Keeping a logbook of participants, including their names and identification or passport numbers.

The ministry emphasized the importance of these measures to mitigate risks for tourists, who are the primary participants in water-based and beach activities. These efforts are part of a broader initiative to enhance safety standards within the Maldivian tourism industry.

Coco Collection, a prominent Maldivian resort brand, has been celebrated at the 2024 Seven Stars Luxury Hospitality and Lifestyle Awards, with both Coco Bodu Hithi and Coco Palm Dhuni Kolhu earning accolades for their exceptional luxury hospitality.

The Seven Stars Luxury Hospitality and Lifestyle Awards, renowned as the ultimate authority in luxury recognition, serve as a trusted guide for sophisticated travelers and lifestyle enthusiasts worldwide, particularly in India and the Middle East.

Coco Bodu Hithi, acclaimed for its romantic ambiance, has been awarded the title of Best Luxury Honeymoon Resort in the Maldives. This recognition underscores the resort’s outstanding service and its ability to create unforgettable experiences for couples seeking a serene getaway.

The resort’s appeal to diverse guests, including Indian celebrities like Mouni Roy and Surbhi Jyoti, demonstrates its ability to curate unique and memorable stays. Signature experiences such as the Sunset Cruise and the intimate Dinner Under the Stars in a private pergola exemplify the resort’s dedication to delivering personalized luxury.

Meanwhile, Coco Palm Dhuni Kolhu, celebrated for its eco-conscious ethos, has been named the Best Barefoot Luxury Resort in the Maldives. This award highlights the resort’s steadfast commitment to sustainability and environmental stewardship, even 25 years since its establishment.

The resort’s dedication to ecological practices has also earned it recognition at the World Luxury Hotel Awards, where it received multiple accolades in key categories that align with its advocacy for sustainable tourism.

This winter, guests can bask in the Maldivian sunshine at Coco Bodu Hithi and Coco Palm Dhuni Kolhu with the exclusive Discover Coco offers, featuring discounts of up to 40% on spacious, comfortable villas. For reservations, contact [email protected] and secure an extraordinary tropical escape.

Cruise liners have ceased operations in the Maldives due to increased costs resulting from the imposition of the Tourism Goods and Services Tax (TGST) on tourists. This change has significantly affected the operations of local agents who facilitate cruise line visits to the country.

According to regulations introduced under the previous administration, cruise tourists are required to pay TGST starting from their arrival date. Cruise operators are mandated to remit 16% of the total package price, including Maldivian destinations, as GST through local agents.

Mohamed Firaq, CEO of Inner Maldives and a representative for several cruise lines, explained that the Maldives has become a comparatively expensive destination. He provided an example to illustrate the disparity:

• A cruise liner carrying 1,500 passengers incurs approximately $80,000 in taxes to dock in the Maldives.
• In contrast, docking fees in Dubai are $28,000, while in Sri Lanka, they are $18,000.

“Cruise lines operate as businesses focused on minimizing costs. If the Maldives is significantly more expensive, operators will choose alternative destinations,” Firaq said.

In previous years, 20 to 30 cruise liners visited the Maldives annually, especially during the winter season. However, no arrivals are expected this year.

Firaq highlighted that neighboring countries, such as Sri Lanka and India, are reaping the benefits of this situation. Cruise liners are utilizing the port of Hambantota in Sri Lanka, while Cochin in India has seen increased activity.

The Maldives has also faced criticism for its high docking fees and inadequate services for cruise liners. Neighboring countries reportedly offer superior services at more competitive rates.

“This combination of high costs and subpar services has made the Maldives less appealing to cruise operators,” Firaq noted.

He attributed the issue to missteps in drafting TGST regulations. Initially, the intention was to exempt high-end yachts from TGST, but cruise liners were inadvertently included under the same rules.

Firaq stressed the urgency of amending these regulations before February 2025, as cruise itineraries for the following year are typically finalized by then.

“Taxation is not the issue, but it must be reasonable and aligned with the realities of the cruise industry and the competition from other destinations,” he concluded

Kuramathi Maldives has successfully renewed its Travelife Gold Certification, a prestigious global recognition that highlights the resort’s dedication to sustainability. Travelife is an industry-driven initiative that focuses on promoting environmental stewardship and social responsibility among accommodation providers and tour operators. This certification reflects Kuramathi’s unwavering commitment to corporate social responsibility (CSR), demonstrated through various efforts such as protecting biodiversity, conserving marine ecosystems, adopting energy and water-efficient practices, and fostering partnerships with local communities to advance education and employment opportunities.

A significant component of Kuramathi’s sustainability framework is aligned with Travelife’s focus on employee welfare. The resort ensures ethical working conditions, fair wages, opportunities for professional growth, and compliance with health and safety regulations. Additionally, Kuramathi fosters inclusivity by providing equal employment opportunities and actively involving staff in sustainability initiatives. These practices cultivate a workplace environment where employees feel empowered and take shared responsibility for achieving CSR goals.

At the heart of Kuramathi’s sustainability strategy is its Eco Centre, led by a dedicated team including a Sustainability Manager, a Horticulturist, and an Eco Centre Coordinator. This team collaborates with the resort’s environment committee, which consists of representatives from different operational departments, to implement programs that promote environmental, social, and economic sustainability. By reducing environmental impact, enhancing community well-being, and advocating for human rights and fair labor practices, Kuramathi exemplifies responsible tourism, effectively balancing growth with conservation.

LUX* South Ari Atoll has been honored with the title of “Best for Families” in the Africa, Asia, and Middle East regions at the 2025 Condé Nast Johansens Awards for Excellence. This prestigious accolade highlights the resort’s dedication to providing exceptional family-friendly experiences in the Maldives.

Condé Nast Johansens, a globally renowned luxury travel guide, is celebrated for its expert selection of the world’s finest hotels, restaurants, and travel experiences. The Awards for Excellence, recognized as one of the most esteemed honors in the hospitality industry, are determined by an independent panel of experts who evaluate accommodation quality, service standards, dining options, and overall ambiance.

John Rogers, General Manager of LUX* South Ari Atoll, expressed his pride in receiving the award, reaffirming the resort’s commitment to creating the perfect blend of adventure and relaxation for families, ensuring memorable experiences for guests of all ages. The resort’s family-friendly accommodations, vibrant PLAY kids’ club, and diverse island activities exemplify this commitment.

This recognition strengthens LUX* South Ari Atoll’s reputation as a leading family travel destination. With unique experiences such as open-air cinema under the stars, coral planting workshops, snorkeling with whale sharks, and island treasure hunts, the resort continues to set a global standard for luxury family vacations

Maldives Tourism Faces Challenges Amid Regulatory USD Exchange Requirement

The Maldives’ tourism industry, still recovering from the impacts of the COVID-19 pandemic, is grappling with a significant challenge introduced by the Maldives Monetary Authority (MMA). The new regulation mandates resorts to exchange USD 500 per tourist, a policy that has drawn widespread criticism from resort operators. They argue that this one-size-fits-all approach fails to account for differences in operating costs, guest profiles, and market positions, making it unfeasible for many resorts.

Resort Operators Advocate for Policy Revisions

Resort operators are urging the MMA to reconsider this fixed exchange requirement, citing operational and financial impracticalities. Most resorts generate the majority of their revenue in USD and face substantial USD outflows for operational expenses. As an alternative, they propose a percentage-based exchange requirement, such as 10% of USD earnings, which would align better with the financial realities of the industry.

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Financial Realities of Maldivian Resorts

Maldivian resorts primarily earn revenue in USD, with international payments accounting for the bulk of their income. Over 75% of resorts operate with an Average Daily Rate (ADR) below USD 800, making them particularly vulnerable to the financial pressures of the fixed exchange mandate. The majority of USD revenue is consumed by essential expenses:

• Taxes and Lease Rentals: 25%
• Salaries and Employee Costs: 20%
• Financing Costs and Loan Repayments: 20%
• Fuel Costs: 10%
• Food Supplies: 4%
• Maintenance: 5%
• Management Fees: 8%

These costs collectively consume over 90% of revenue, forcing resorts to acquire additional USD from external sources at premium rates to comply with the mandate. This adds financial strain, undermining liquidity, stability, and contractual obligations.

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Fixed USD Exchange Policy: A Financial Strain

The fixed exchange requirement is particularly burdensome for resorts with lower ADRs, as their per-guest income is comparatively lower. With over 90% of revenue allocated to operational costs, the mandate overlooks the diverse financial structures across resorts.

A percentage-based exchange model would offer a more equitable solution, reducing financial stress on smaller resorts while still fulfilling the MMA’s objective of increasing local currency liquidity. For example, a 10% earnings-based exchange requirement would be more sustainable, enabling compliance without compromising the financial health of resorts.

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Addressing Transparency Concerns in a Percentage-Based Model

Critics of a percentage-based policy may argue that resorts could underreport earnings to avoid compliance. However, with over 60% of bookings made via Online Travel Agencies (OTAs), the MMA can leverage OTA data to monitor nightly rates and occupancy. This ensures transparency and minimizes the risk of misreporting. OTA-based data provides an objective mechanism to enforce compliance effectively.

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Long-Term Implications for Tourism and the Economy

If the fixed USD exchange policy remains unchanged, its ripple effects could harm the Maldivian economy. Resorts may face rising operational costs, leading to higher prices, reduced reinvestment, and potential declines in service quality. This, in turn, could weaken the Maldives’ competitive position in the global tourism market, as rival destinations continue to enhance their offerings.

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A Balanced Solution: Percentage-Based Exchange Requirement

Transitioning to a percentage-based USD exchange model could address the MMA’s goals while safeguarding the financial stability of resorts. Key benefits include:

• Alignment with Financial Realities: Proportional exchange requirements reduce pressure on lower-revenue properties.
• Enhanced Compliance: With ADR data accessible via OTAs, earnings reporting becomes transparent and verifiable.
• Support for Sustainable Tourism: Lower reliance on expensive external USD sources allows resorts to maintain financial health and reinvest in quality improvements.

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Toward Financial Resilience in Maldivian Tourism

A collaborative approach between the MMA and resort operators is essential to develop a sustainable solution. By adopting a flexible, earnings-based model, the MMA can achieve its objectives without jeopardizing the operational stability of resorts. Such a policy would support local currency reserves while fostering long-term resilience in the Maldivian tourism sector.

Sirru Fen Fushi – Private Lagoon Resort, an eco-friendly sanctuary nestled in the clear waters of the Shaviyani Atoll and a prestigious member of Leading Hotels of the World, is launching what may be the Maldives’ most ambitious luxury giveaway to date: the “Millionaire for a Month” competition. This exceptional social media contest offers travel enthusiasts the opportunity of a lifetime—a month of unparalleled luxury and adventure.

Participants are invited to submit their favorite travel memories or breathtaking Maldives-inspired photos on Instagram for a chance to win a 30-night escape, complete with seaplane transfers, at Sirru Fen Fushi – Private Lagoon Resort. The winner and their guest will indulge in the resort’s exclusive villa offerings, experiencing the beauty and luxury of this 5-star paradise firsthand.

To enter, participants must follow @sirrufenfushi.maldives on Instagram and post a captivating travel memory or photo capturing the essence of the Maldives, along with the hashtag #SirruMillionaire. They should also tag a friend they would bring on this adventure and share the post in their Instagram Story, tagging the resort.

Open to all Instagram users aged 18 and over, this competition is unique in its inclusivity—no minimum follower count is needed. It celebrates creativity and passion, inviting anyone with a love for travel and storytelling to join.

The winner will enjoy a month-long stay in the finest accommodations at Sirru Fen Fushi, rotating weekly. The experience begins in the Sunset Deluxe Beach Villa, transitions to the Safari Tent Villa inspired by glamping, continues to the Sunrise Water Villa with its incredible overwater views, and concludes with a stay in the opulent Grand Water Villa. This luxurious experience includes gourmet dining, seaplane transfers, and a lineup of unforgettable activities like private beach dinners, dolphin cruises, spa treatments, snorkeling, and movie nights at the jungle cinema.

Adding a special touch, the winner will act as an ambassador for the resort, capturing and sharing their experiences throughout the stay. This role involves daily social media coverage, showcasing the allure of island life as an island millionaire.

More than just a holiday, this grand giveaway showcases Sirru Fen Fushi’s commitment to creating once-in-a-lifetime experiences. With this daring campaign, Sirru Fen Fushi reaffirms its position as a leader in world-class luxury and unforgettable adventures.

For full competition details and terms, visit www.sirrufenfushi.com/millionaire-for-a-month and explore #SirruMillionaire on Instagram