Russian Travel Industry Seeks Government Help as Maldives' Largest Bank Returns Russian Payments

The Russian Union of Travel Industry (RST) said on Monday that it has asked the Russian government to hold talks with authorities in the Maldives. The reason is that the island nation's largest lender, Bank of Maldives, has been returning payments made by Russian tourists since Oct. 18. The total volume of delayed or returned payments is estimated at roughly $2 million.

Some of the rejected payments come from foreign third-party entities acting as intermediaries. Last Friday, RST appealed to Russia's ambassador to Sri Lanka and the Maldives, as well as a senior official at Russia's Economic Development Ministry, asking them to hold consultations with Maldivian officials.

Industry representatives' comments

RST board member Artur Muradyan said the industry needs to understand what is behind this approach and how to ensure hotel services are paid for on time. RST executive Dmitry Arutyunov said Russian tour operators are having to absorb repeated bank transaction fees while hotel stays remain unpaid. In several cases, Russian tourists had to pay for their rooms a second time on arrival or face eviction.

The Russian market's weight for the Maldives

According to the business daily Kommersant, Russia is the second-largest source of foreign tourists for the Maldives after China. Between January and October, 258,100 Russian visitors arrived, making up 14.3% of all arrivals. Travel agencies in Russia regard the Maldives as one of the most profitable luxury destinations, with an average package priced at around 585,600 rubles ($7,000).

Industry leaders warn that if the banking problem is not resolved, Russian tour operators will have to reconsider their investments in the island nation and its promotion.