On 23 August 2026, MATI’s Executive Board was summoned to an urgent meeting at the President’s Office, attended by high-level Cabinet Ministers and Government officials. The Board was informed that ongoing law enforcement investigations have allegedly found certain resort operators fuelling the parallel foreign currency market through illegal transactions, artificially inflating the parallel exchange rate.

MATI stated clearly that it holds no knowledge of any such activity and reaffirmed that it has consistently and unambiguously urged all Members to comply fully with applicable laws and regulations at all times, without exception.

On 24 August 2026, the President’s Office held a press conference on this matter, with a panel comprising MMA Governor Ahmed Munawar, Minister of Homeland Security, Labour and Technology, Hon. Ali Ihusaan, Minister of Economic Development, Transport and Trade, Hon. Mohamed Saeed, and Minister of Finance and Public Enterprises, Hon. Hassan Zareer. The allegation against certain operators was used to justify raising the mandatory currency conversion requirement for Category A establishments — which includes resorts — to 40% of total sales.

An allegation currently under investigation, concerning the conduct of some individual resort operators, should not justify a sweeping policy measure applied to an entire industry segment. Nor is it accurate or fair to attribute pressure on the parallel market solely to resort operators.

MATI wishes to place on record that the association was asked to meet with the MMA Governor earlier this month to discuss conversion requirements. At that meeting, the MMA proposed removing the existing USD 500-per-tourist conversion requirement option in favour of a uniform 20% conversion requirement across Category A establishments. MATI’s position has consistently been that any such requirement should not exceed 10% of total sales. Furthermore, we requested that long-pending exemption requests from resorts unable to meet the existing conversion requirements — submitted in accordance with the law and relevant regulations — be resolved as soon as possible.

Given this, MATI is deeply concerned that a further one hundred percent increase, amounting to 40% of total sales, is now being proposed within weeks of the meeting — an increase the industry does not consider viable because resorts already make substantial payments in USD for fuel, salaries, service charge, supplies, logistics, guest transfers, TGST, green tax, withholding tax, income tax, tourism land rent, and foreign currency loan obligations.

MATI represents 146 resorts out of a total of 200 members, who are among the largest investors, earners and converters of foreign currency into the domestic economy. The industry has consistently engaged in good faith with the Government on matters of national economic importance, including the country’s foreign exchange position, and will continue to do so. MATI remains committed to constructive dialogue with the Government, the MMA, and all stakeholders to reach solutions that are fair, sustainable, and grounded in fact.

End.