Bank refunds and tax disputes: how Maldives issues affect Russian tour operators

Bank refunds: what’s happening?

In early October the biggest bank in the Maldives — Bank of Maldives — started returning money linked to payments from Russian tourists. Operators who had already paid for accommodation discovered that the funds had vanished from their accounts. The refund is made even when the payment was carried out by a foreign counterpart.

The Russian Union of the Tourism Industry (RUTI) responded with letters sent on 6 November, asking the Ministry of Economic Development and the Russian ambassadors in Sri Lanka and the Maldives to intervene. According to them, the delayed funds total about two million dollars.

Why is the bank doing this?

RUTI says the bank treats any payment aimed at covering Russian guests’ stay as “connected to Russia”. In some cases the international payment message identifier (UETR) is missing, which, the bank argues, makes verification harder.

The biggest victim — Resort Life

Resort Life, a company that has been serving Russian clients for more than twenty years, turned out to be one of the first to feel the impact. Its general director says that in recent years the bank has never scrutinised such operations so tightly. As a result, the hotel missed roughly 1.8 million dollars for tourists who have already gone on holiday.

Lack of funds creates a real conflict: the hotel is forced to ask guests to pay again or to refuse check‑in. A representative of the tour operator “Art‑Tour” confirmed that such situations have indeed occurred.

How are other operators reacting?

Some agencies, for example “Persona Grata”, managed to re‑book and place tourists in the same or similar hotels after a second payment. Others, like Anex, work through a foreign principal, which, according to their deputy CEO, spared them from refund problems.

Nevertheless, industry representatives fear that incidents like these will erode confidence in the Maldives as a travel destination. The CEO of Space Travel demands explanations from the bank – on what basis it returns payments and what alternative settlement schemes are available.

Tax issue: 17‑percent levy

Besides the banking headaches, local authorities introduced in August a 17 percent tax on goods and services applied to the margin of foreign tour operators. Russian companies asked to be exempted from this charge. On 6 November Maldives tourism minister Mohamed Amin announced that the tax regime will stay unchanged.

Financial context for Russian tourists

The Maldives remain one of the most expensive spots for Russians. Data from the Association of Russian Tour Operators (ATOR) show that in November the islands accounted for 1.7 % of all bookings, and the average tour price reached 585.6 thousand rubles – up almost 15 % from the previous year. That’s twice the cost of a comparable holiday in Egypt.

By 1 November the Maldives had welcomed more than 258 thousand Russian tourists, 11 % more than a year earlier. In terms of arrivals, Russia is second only to China.

What does this mean for travelers?

For tourists the situation could mean higher prices and the risk of extra expenses if their tour operator runs into bank refunds. When choosing the Maldives, it’s worth asking the agency how they plan to handle payments and checking whether they have backup settlement schemes.

Outlook

Until the bank and the Maldives government issue official clarifications, the sector will keep looking for ways to minimise financial losses. Possible routes include working through international legal entities, using alternative payment systems and tightening document checks before sending funds.

For Russian tourists it’s important to follow the news and pick reputable operators who can react quickly to changes in the country’s financial and tax policies.

Based on materials from: trn-news.ru.