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Mozambique Enforces New Law: Tourist Resorts Must Accept Metical, Curb Capital Flight

Mozambique Enforces New Law: Tourist Resorts Must Accept Metical, Curb Capital Flight

Mozambique’s Council of Ministers recently passed a groundbreaking Tourism Law, marking a significant shift in the nation’s approach to handling currency within the tourism sector. This legislation mandates that all tourist resorts accept the metical, Mozambique’s national currency, for service payments, addressing the longstanding issue of some establishments favoring foreign currencies.

Addressing Currency Discrimination
Instances of tourist establishments, particularly those situated near beaches and borders, refusing the metical in favor of currencies like the South African rand or the US dollar have spurred this legislative change. Deputy Director of Tourism, Gisela Malauene, emphasized the importance of accepting the metical, stating that while it’s permissible for these businesses to accept foreign currencies, the outright rejection of Mozambique’s own is unacceptable. This move aims to reinforce the metical’s validity and usage across all tourist-related transactions within the country.

Preventing Capital Flight

Another critical aspect of the new law is its focus on financial regulation to prevent capital flight. It stipulates that revenues generated by tourist resorts must be collected through accounts in banks operating within Mozambique. This measure is designed to ensure that the economic benefits of tourism circulate within the Mozambican economy and are not lost to other nations. Collaborative efforts with the Tax Authority and the Bank of Mozambique are in the pipeline to facilitate the repatriation of foreign currency, further solidifying the law’s intent to bolster the national economy.

Regulating the Tourism Industry
Beyond currency regulation, the legislation introduces comprehensive regulations for Travel Agencies and Tourist Information Professionals. This move signifies a broader attempt to streamline and effectively regulate the tourism industry, ensuring that it operates transparently and contributes positively to Mozambique’s economic landscape. By setting clear standards and requirements, the law aims to enhance the overall quality and reliability of tourism services across the nation.

See Also

The enactment of this new Tourism Law by Mozambique’s Council of Ministers underscores the government’s commitment to strengthening the national currency’s standing and ensuring the economic benefits of tourism are felt within the country. By addressing the dual issues of currency discrimination and capital flight, the law paves the way for a more inclusive and sustainable tourism sector. As these measures take effect, the potential for enhanced economic stability and growth within Mozambique looms large, marking a significant step forward in the nation’s tourism and financial policies.

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