Gasim says it is resort workers' right to get service charge in dollars

Villa Resorts owner and Jumhoori Party leader Gasim Ibrahim has stated that it is wrong on the parts of some resorts to decide to pay service charge in Maldivian Rufiya citing difficulties faced due to the foreign exchange laws.

The Foreign Currency Act stipulates that resorts, which fall into 'Category A' must exchange USD 500 per guest or 20 percent of monthly foreign currency income at a local bank.

Universal Resorts has announced that this Act has led to challenges in the continued operation of their resorts, and hence decided to here onwards pay service charge to resort workers in MVR instead of USD.

Meanwhile, the world's largest seaplane operator, TMA, has also announced that for the same reason, they will begin paying employee salaries in local currency.

However, Gasim opposes this, stating in a post on X that service charge is taken from guests in USD, and so should be paid to resort workers in USD as well.

"Refusal to pay service charge to staff in USD despite them wanting it so can be considered extortion as under Article 212 of the Penal Code. It is also a legal and religious obligation to deliver what is owed to a person as it is," Gasim said.

"I also run Category A resorts with thousands of employees. We also face this challenge. But I am sharing my opinion on the matter as this is a major right of employees, and it would be causing more loss to staff to pay them in MVR citing challenges in operating the resort," he said.

Gasim said that it is highly concerning that some companies are now saying that salaries will also be paid in MVR. He maintains that if an agreement is made with employees stating that salary will be paid in USD, then it must be honoured until the contract expires.