Universal Resorts to stop paying service charge in USD
Universal Resorts has decided to pay service charge in Maldivian Rufiyaa instead of U.S. dollars starting from July in response to the government's amendments to the Foreign Currency Act
One of Universal's resorts
Universal Resorts has announced their decision to stop paying service charge in U.S. dollars.
It has been reported that a circular signed by the company's Chief Operating Officer highlights that after considering important factors and consultations, it has been decided to pay service charge in Maldivian Rufiyaa starting from July.
The company has stated that this change was made in response to the government's amendments to the Foreign Currency Act. Universal also mentioned that such a change was made as there seemed to be no other option at this time for the smooth operation of the company. Universal further stated that if the government provides any relief to the USD policy, they would be able to return to a situation where service charge was paid to employees in USD in line with such changes, and they will be closely monitoring any such changes.
Tourism industry workers have noted that with the implementation of the law requiring dollar-earning businesses to convert dollars, resort employees' income has decreased as salaries and service charges are now being paid in Maldivian Rufiyaa.
According to the Tourism Employees Association of Maldives (TEAM), employees who were previously receiving salaries in dollars will see a reduction in monthly income ranging from MVR 3,000 to MVR 5,000 when paid in MVR.
Under the amendments to the law that came into effect this January, businesses earning foreign currency, including resorts, are required to convert either USD 500 per tourist or 20 percent of their revenue to Maldivian Rufiyaa. As a result, some resorts have started paying salaries and service charges in Maldivian Rufiyaa instead of U.S. dollars.
Citing the financial difficulties faced by employees due to these changes, TEAM has called on the government to take immediate action. TEAM has also urged the government to stop the conversion of salaries and service charges to Maldivian Rufiyaa.
With the government's changes to the dollar conversion policy, President Dr. Mohamed Muizzu has stated that dollars will be available at the general rate by 2027.
