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Coronavirus could cost 75 mln tourism jobs globally, new study says
Up to 75 million jobs are at immediate risk in global travel and tourism due to the coronavirus pandemic, says a leading industry body.
The alarming figure, based on research from World Travel & Tourism Council (WTTC), shows a punishing travel and tourism GDP loss to the world economy of up to $2.1 trillion in 2020.
The latest projection of a 50 per cent increase in jobs at risk, in less than two weeks, represents a significant and worrying trend, with an astounding one million jobs being lost every day in the travel and tourism sector, due to the sweeping effect of the coronavirus pandemic.
“The number of jobs now at risk in the global travel and tourism sector is a staggering 75 million, bringing real and profound worry to millions of families around the world,” WTTC chief executive Gloria Guevara was quoted in a statement, as saying.
“This chilling new figure also represents the collective delay by many governments around the world to react quickly enough to come to the aid of a sector which is the backbone of the global economy.”
The analysis by WTTC, which represents the global travel and tourism private sector, also exposes the depth of the crisis for individual regions.
Asia-Pacific is expected to be most heavily impacted with up to 49 million jobs at risk throughout the region, representing a loss of nearly $800 billion to travel and tourism GDP.
The latest figures also suggest that in Europe, up to 10 million jobs in travel and tourism are at risk, totalling a loss of nearly $552 billion.
Germany is set to be the most affected country in Europe, with almost 1.6 million jobs at risk, followed by Russia with an estimated 1.1 million in potential job losses. Italy and the UK follow as the third most impacted, with both countries projected to lose up to one million jobs in the Travel and tourism sector.
The Americas are also expected to be hit hard by this crisis, with the United States, Canada and Mexico expected to lose up to $570 billion combined, with nearly seven million jobs in travel and tourism at risk.
Other countries expected to be hit hard by this crisis include Brazil, France, Japan, Indonesia and India.
“If urgent action is not taken within the next few days, the travel and tourism sector faces an economic meltdown from which it will struggle to recover and plunge millions of people dependent upon it for their livelihoods into debt. Not only will this have an enormous negative impact on major businesses in the travel and tourism sector around the world, the ‘domino effect’ will also result in massive job losses across the entire supply chain, hitting employees and those in self-employment,” Guevara said.
“We call on all those in positions of power to help the powerless and enact policies to support and sustain a sector which is a driving force of the global economy and responsible for generating one in five of all new jobs.”
Travel and tourism contributes to 10.4 per cent of Global GDP, is directly responsible for generating one in 10 of the world’s jobs, and for eight successive years, has outpaced the growth of the global economy.
Maldives on Wednesday announced a blanket suspension of on-arrival visa in a bid to combat the spread of the novel coronavirus.
Even before Wednesday’s announcement, the Maldives had closed its borders to arrivals from some of the worst-hit countries, including mainland China, Italy, Bangladesh, Iran, Spain, the United Kingdom, Malaysia and Sri Lanka. Visitors from three regions of Germany (Bavaria, North Rhine-Westphalia and Baden-Württemberg), two regions of France (Île-de-France and Grand Est) and two regions of South Korea were also banned from entering the country.
All direct flights to and from China, Italy, South Korea and Iran were also cancelled.
Cruise ships and foreign yachts were also banned from docking at any of the country’s ports.
On March 8, Maldives reported its first cases of the novel coronavirus, as two hotel employees tested positive for Covid-19 at a luxury resort in the archipelago. Eleven more cases — all foreigners working or staying resorts and liveaboard vessels — were later identified.
However, eight out of the 13 have made full recoveries, whilst the rest are being treated at designated quarantine facilities.
The Maldives announced a state of public health emergency on March 12, the first such declaration under a recent public health protection law.
The public health emergency declaration has allowed the government to introduce a series of unprecedented restrictive and social distancing measures, including a ban on inter-island travel of tourists, including for excursions and between resort islands.
A nationwide shut down of all guesthouses and city hotels has also been ordered. Spa facilities located on inhabited islands have also been closed.
The Covid-19 outbreak has hit the Maldivian economy hard, as travel restrictions and other preventive measures affect the country’s lucrative tourism industry, which contributes the bulk of the island nation’s state revenue and foreign reserves.
Before the pandemic, the government had been bullish about tourism prospects, targeting two million, high-spending holidaymakers this year after last year’s record 1.7 million.
However, tourist arrivals saw a year-over-year decline of 22.8 per cent in the first 10 days of this month. With arrival numbers falling, several resorts across the Maldives had been closed.
Tourism has been the bedrock of the Maldives’ economic success. The $5 billion-dollar economy grew by 6.7 per cent in 2018 with tourism generating 60 per cent of foreign income.
However, the government is at present projecting a possible 5.6 per cent economic contraction this year — an estimated $446 million hit.
The government has launched an emergency MVR 2.5 billion ($161.84 million) facility and a package of financial measures to shore up the local economy against the coronavirus pandemic.
The MVR 2.5 billion stimulus plan includes MVR 1.55 billion ($100 million) in emergency loans for businesses to meet short-term working capital needs.
The emergency facility is complemented by a package of financial measures, including a six-month moratorium on principal and interest repayments for personal and business loans sanctioned by commercial banks.
Meanwhile, Bank of Maldives (BML) has announced a $2 million short-term financing facility for the tourism industry.
The facility by the country’s largest bank allows operational resorts and guesthouses finance up to $2 million to manage their working capital requirements, with a repayment period of three years.
Featured
Maldives wellness economy soars with GWI and JOALI BEING collaboration
The Global Wellness Institute (GWI), a leading non-profit research organisation for the global wellness industry, announced a strategic collaboration with JOALI BEING, marking the Maldives as the 11th country to feature on GWI’s Geography of Wellness platform. JOALI BEING, which opened in 2021, is a pioneering wellbeing resort designed around biophillic principles and focused on delivering transformative, holistic wellness experiences.
The Maldives, as an island economy, has emerged as a premier destination for luxury wellness tourism and spas. The country’s wellness economy comprises two major segments: wellness tourism, valued at $1 billion following an impressive annual growth rate of 35.4% from 2022 to 2023, and the spa sector, valued at $448 million, with an exceptional 63.7% growth rate over the same period.
Through this collaboration with JOALI BEING, GWI has made detailed data on the Maldives’ position within the $6.3 trillion global wellness economy accessible to stakeholders interested in investing in the country’s expanding wellness tourism and spa industries. GWI’s chair and CEO, Susie Ellis, emphasised that by sponsoring the Geography of Wellness report, JOALI BEING is playing a pivotal role in shaping the future of wellness tourism in the region. This collaboration aims to help the Maldives capitalise on the rising demand for wellness travel while maintaining competitiveness in the evolving wellness tourism sector.
Özgür Cengiz, global director of wellness development at Gürok Tourism Group, which operates JOALI BEING, expressed pride in the partnership with GWI. Cengiz highlighted the Maldives’ long-standing association with luxury and natural beauty and noted that the collaboration integrates data-driven wellness insights to enhance its global appeal. By aligning offerings with emerging trends such as nature connection, eco-wellness, and transformative travel, the initiative seeks to attract high-value travellers while promoting sustainability and community development.
The Maldives, spanning 1,192 islands across 26 atolls, is celebrated as a quintessential island paradise with jewel-like islands, white sands, turquoise waters, and luxury wellness resorts. Nature-centred wellness experiences, including encounters with vibrant coral reefs teeming with sea turtles, manta rays, and whale sharks, highlight one of the world’s richest marine ecosystems. The Maldivian way of life fosters a deep connection to nature, with a diet rich in tropical fruits, herbs, and fresh seafood contributing to holistic wellbeing. Environmental sustainability remains a key priority, with government-led initiatives aimed at protecting coral reefs, mangroves, and seagrass beds to ensure harmonious coexistence with tourism.
The Maldives’ traditional healing practice, Dhivehi beys, combines indigenous plant-based remedies with global influences to restore balance within the body. Emphasising harmony among the body’s ‘humours’ of hot, cold, and dry, Dhivehi beys uses natural herbs for healing. The government has recognised its cultural significance and is actively integrating this ancient tradition into tourism, allowing visitors to experience it alongside the country’s natural beauty.
The Global Wellness Economy: Maldives report provides critical data for industry stakeholders and is available for free download.
The Global Wellness Institute (GWI) is a nonprofit organisation recognised as a leading global research and educational resource for the wellness industry. It introduces major industry initiatives and hosts regional events to unite leaders in shaping the future of wellness. GWI aims to improve global health by educating institutions, businesses, and individuals on preventing disease, reducing stress, and enhancing overall quality of life, with a mission to empower wellness worldwide.
Celebration
Bandos Maldives kicks off festive season with joy and tradition
Bandos Maldives recently announced the commencement of the Festive Season with a grand evening featuring the traditional Jolly Mix and the ceremonial lighting of the Christmas Tree. This event marks the beginning of a magical holiday celebration on the island.
Guests can enjoy the spirit of the season through a variety of festive activities planned daily. The lineup includes engaging activities for both children and adults, meaningful coral planting experiences, a traditional Maldivian feast, and thrilling land and sea games. These events are designed to create unforgettable memories for all visitors.
The tropical paradise of Bandos Maldives offers a warm and joyous holiday experience, filled with wonder and the true essence of the season.
Conveniently located just 7 kilometres from Malé International Airport, Bandos Maldives is a pristine coral island spanning 18.66 hectares in the heart of North Malé Atoll. For half a century, it has embodied its ethos as ‘the island of hospitality,’ making it a premier travel destination in the Maldives.
Set amidst the crystal-clear turquoise waters of the Indian Ocean, the resort features 220 accommodations, along with three vibrant bars and four restaurants. Guests can relax at the Orchid Spa or stay active at the state-of-the-art Clubhouse sports complex, which includes beach volleyball, tennis, steam baths, a sauna, and a modern fitness suite. For diving enthusiasts, Dive Bandos, one of the Maldives’ longest-established dive centres, offers safe and thrilling underwater adventures.
Action
Dive into conservation: Sun Siyam Iru Fushi introduces snorkelling with a purpose
Sun Siyam Iru Fushi has introduced an exciting new activity for ocean enthusiasts: Conservation Snorkelling. Led by the resort’s resident marine biologist, Mohamed Shah, this immersive experience allows participants to contribute to marine conservation efforts while exploring the vibrant underwater ecosystem of the Maldives. Combining education, exploration, and action, the initiative offers an enriching opportunity for visitors of all ages.
Participants engage in collecting critical data on coral health and fish populations using underwater fish guides, coral health charts, and writing slates, while learning to identify various fish species. They assess reef conditions and contribute to the protection of the local marine environment. The findings are then discussed with Mohamed Shah, providing deeper insights into the marine life of the Iru Fushi lagoon and house reef.
This activity is a key component of Sun Siyam Cares, the resort’s initiative focused on environmental protection and community support. Families, young couples, and other guests can participate in global conservation efforts through the Coral Watch citizen science project. The activity is open to strong swimmers aged eight and above who feel comfortable snorkelling.
“At Sun Siyam Iru Fushi, we strive to protect the stunning natural environment around us,” said Abdullah Atham, Resort Manager. “Through activities like Conservation Snorkelling, we encourage guests to explore and actively contribute to ocean conservation.”
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