Tourism Sector Payment Shift Could Violate Employee Rights, Says Gasim

Jumhoori Party leader and resort owner Gasim Ibrahim has voiced concern over a growing trend among tourism operators to pay service charge and salaries in Maldivian Rufiyaa (MVR) instead of US dollars (USD), citing potential legal and ethical issues tied to the shift.

His comments come amid operational challenges linked to foreign exchange regulations under the Foreign Currency Act. Resorts classified as ‘Category A’ are required to exchange either USD 500 per guest or 20 percent of their monthly foreign currency income through local banks. Universal Resorts recently stated that this requirement has created financial pressure, prompting the company to begin paying service charges to staff in MVR going forward.

Gasim, who employs thousands in the tourism sector, strongly opposed the change. He argued that service charges are collected in USD and should rightfully be distributed to employees in the same currency. Citing Article 212 of the Penal Code, he said failure to do so—especially when staff expect USD payments—could be considered a form of extortion.

He also referenced legal and religious obligations to fulfill monetary entitlements as originally agreed upon. While acknowledging the difficulties caused by foreign exchange regulations, Gasim stated that employers should not shift this burden onto employees, warning that converting payments to MVR could reduce their value.

Gasim added that he is deeply troubled by reports that some resorts are now extending this practice to regular salaries as well. He stressed that employee rights must be upheld and that existing contracts should be honored through to their completion, regardless of broader economic pressures on the tourism sector.