Champa Mohamed Moosa (Uhchu ), a prominent figure in the Maldivian tourism sector, has formally requested the government to suspend recently implemented regulations mandating that foreign income from tourism be deposited in local banks. The letter, addressed to the Maldives Monetary Authority, expresses serious concerns regarding the financial implications of these regulations on the business landscape.

In his communication, Moosa highlighted that the regulation requiring a deposit of USD 500 for each tourist staying at a resort could drive businesses into significant financial distress. The letter was sent on behalf of Moosa's shareholding company, Kurehdhoo Holdings, and emphasizes the perceived injustice of such a measure targeting tourism sector enterprises.

Key Points from Moosa's Letter:

1. Lack of Consultation: Moosa criticized the absence of thorough discussions with industry professionals before enacting this substantial decision. He stressed that, considering the gravity of the regulations, proper consultation should have been prioritized.

2. Immediate Implementation : The regulations took effect immediately upon their publication in the government gazette, leaving businesses no reasonable timeframe to adapt to the changes.

3. Duration of Stay Ignored : The letter points out that the regulations failed to consider the varying lengths of tourist stays at resorts, potentially penalizing businesses unfairly.

4. Financial Injustice : Moosa argued that applying a blanket standard across all resorts is not economically viable, especially given their differing financial profiles.

5. Exemptions for Special Circumstances : The letter advocates for exemptions for guests visiting under unique situations, such as fame trips or sponsored trips, which the current regulations do not acknowledge.

6. Staff Welfare Costs : Moosa expressed concern that businesses may be compelled to reduce costs, including those related to staff welfare, as a direct consequence of the regulations.

7. Unclear Regulations : The letter highlighted the ambiguity in the regulations concerning resorts that have made substantial investments of over USD 70 million and are grappling with debt.

With more than 40 years of involvement in the tourism industry, Moosa reiterated his commitment to providing support to the government on important issues affecting the sector. He underscored the financial burden that tourism businesses already bear in terms of taxes, fees, and rent, criticizing the sustainability of imposing additional constraints aligned with the MMA's guidelines.

Moosa concluded by voicing fears that these regulations could erode investor confidence, deter tourism industry investments, and ultimately pose a threat to the broader economy of the Maldives.