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Virus crisis forces Maldives to cut public sector wages

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Maldives is cutting wages and other benefits in the public sector and state enterprises for at least three months, as part of austerity measures to mitigate the impact from the novel coronavirus pandemic.

Finance minister Ibrahim Ameer told reporters Thursday that 25 per cent from wages between MVR 20,000-25,000 ($1,290-$1,613), 30 per cent from wages between MVR 25,000-60,000 ($1,613-3,871), and 35 per cent from salaries above MVR 60,000 ($3,871) in the public sector will be cut.

These cuts will not affect employees receiving wages below MVR 20,000 ($1,290), but will only apply to basic salaries of contract staff and top officials such as permanent secretaries in the civil service and officials from other state institutions and independent bodies, he said.

Caps will also apply to limit allowances and other benefits to public sector employees.

Take home pay will be capped at:

  • MVR 25,000 ($1,613): for basic salaries below MVR 10,000 ($643)
  • MVR 30,000 ($1,935): for basic salaries between MVR 10,000-15,000 ($643-967)
  • MVR 35,000 ($2,258): for basic salaries between MVR 15,000-20,000 ($643-1,290)
  • MVR 40,000 ($2,581): for basic salaries between MVR 20,000-25,000 ($1,290-1,613)
  • MVR 45,000 ($2,903): for basic salaries between MVR 25,000-30,000 ($1,613-1,935)

“From our estimates, these pay cuts will allow us to save some MVR 15 million ($967,993) per month from state expenditure,” Ameer said.

The finance minister said a 32 per cent cut will be made from the basic salaries of managing directors, deputy managing directors and chief executives of state-owned companies. They will not be receiving the MVR 11,500 ($742) board allowance either, he added.

The government had earlier announced plans to shave MVR 5 billion ($324 million) off state expenditure and reduce the total state expenditure for the year to MVR 30 billion ($1.944 billion) from the approved MVR 38.7 billion ($2.5 billion).

Previous austerity measures include a 20 per cent cut on salaries and allowances of all political appointees, and 30-70 per cent cuts across travel, training, renovations and capital equipment budgets.

A 36 per cent reduction has also been made to capital grants allocated to local councils under a recent legislative amendment to give more powers and financial flexibility to the local administration in the islands.

The Public Sector Investment Programme has also been put on hold.

The Maldives is also looking to secure a freeze on loan repayments worth MVR 4 billion ($259.2 million) under a recent debt moratorium agreed by the world’s wealthiest countries in the G20 grouping.

The Maldives is looking to borrow $233.37 million from international lenders to plug the gap in balance of payments stemming from the coronavirus pandemic.

Funds already pledged by international lenders include $28.9 million from the International Monetary Fund (IMF), $20 million from the OPEC Fund for International Development, $17.3 million from the World Bank, and $3.28 million from the European Union.

In the meantime, the government will borrow MVR 4.2 billion ($272 million) under an overdraft facility at the central bank to cover state expenses and maintain public services amidst the coronavirus pandemic.

The coronavirus 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 March. Officials say the number of tourist arrivals to the Maldives could drop by half in 2020.

All international airlines have suspended scheduled operations to the Maldives, as the island nation enforced a blanket suspension of on-arrival visa in late March in a bid to combat the spread of the novel coronavirus.

Even before the visa suspension, 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.

With arrival numbers falling and the visa suspension in effect, 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 13 per cent economic contraction this year — an estimated $778 million hit.

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.

Eighteen more cases — all foreigners working or staying resorts and liveaboard vessels except five Maldivians who had returned from abroad — were later identified.

A six-case cluster of locals, detected in capital Male on April 15, confirmed community transmission of the coronavirus. Several more clusters have since been identified, bringing the total number of confirmed case in the Maldives to 618.

Two deaths have been reported and 20 have made full recoveries. Five remain in intensive care.

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 stay-at-home orders in capital Male and its suburbs, a ban on inter-island transport and public gatherings across the country, and a nationwide closing of government offices, schools, colleges and universities.

Non-essential services and public places in the capital such as gyms, cinemas and parks have also been shut.

Restaurants and cafes in the capital have been asked to stop dine-in service and switch to takeaway and delivery.

A nationwide shutdown of all guesthouses, city hotels and spa facilities located on inhabited islands is also in effect.

Featured

Noku Maldives unveils long-term Sea Turtle Conservation Programme

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Noku Maldives, Vignette Collection, has announced the launch of a dedicated Sea Turtle Conservation Programme, developed in partnership with the Atoll Marine Conservation Centre (AMCC). Beginning on 25 November 2025, this long-term initiative strengthens the resort’s commitment to the Vignette Collection pillar Means for Good, reflecting a considered approach to environmental stewardship and responsible hospitality.

The waters surrounding Noku Maldives support a naturally thriving ecosystem, characterised by extensive seagrass meadows, coral-rich shallows, and warm lagoons that provide an essential refuge for sea turtles. In recent years, the island has recorded multiple nesting events along its shores — a rare and significant indicator of the health of its marine environment. The new programme aims to safeguard and enhance this natural heritage.

As part of the collaboration, a full-time AMCC marine biologist will be stationed on the island to lead a comprehensive portfolio of conservation activities. This will include monitoring the local sea turtle population, assessing reef and coral health, supporting long-term scientific research, and conducting fieldwork and outreach initiatives across neighbouring islands.

The programme will also enhance guest engagement through educational talks, guided snorkelling experiences, and hands-on conservation workshops, offering visitors the opportunity to connect with the underwater world in an enriching and meaningful way.

The initiative complements Noku Maldives’ growing suite of Means for Good activities, which already include reef conservation studies, coral restoration projects, cultural experiences, and community-led programmes. Together, these efforts underpin the resort’s commitment to delivering stays that are rooted in authenticity, responsibility, and deep respect for the natural environment.

“Our lagoon has always been a peaceful refuge for sea turtles and marine life,” said Hussain Shahid, General Manager of Noku Maldives. “This partnership with AMCC reflects our dedication to protecting these waters and ensuring they continue to flourish. By bringing conservation, community involvement, and guest education together, we hope to create meaningful and lasting impact for the atoll.”

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From spa rituals to sunrise yoga: Angsana Velavaru champions mindful living

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Surrounded by the crystal-clear waters of South Nilandhe Atoll, Angsana Velavaru invites guests to embark on a holistic journey of renewal that nurtures both body and mind.

At the centre of this experience is the award-winning Angsana Spa, inspired by the timeless essence of Asian wellness traditions. Here, the healing power of touch, scent, and nature come together in harmony. Guests can enjoy a range of treatments designed for both relaxation and family bonding, including restorative massages, revitalising body polishes, and signature rituals that incorporate natural ingredients such as coconut, honey, and tropical herbs. Each therapy aims to rejuvenate, soothe, and restore a deep sense of inner calm that reflects the island’s natural rhythm.

Wellness at Angsana Velavaru extends far beyond the spa. The resort’s approach to wellbeing embraces movement, mindfulness, and meaningful connection. Its modern tropical fitness centre provides a tranquil setting for guests to stay active while remaining close to nature. Activities such as aqua aerobics in the Kuredhi Pool and sunrise yoga on the beach combine physical vitality with mindful awareness.

Across the island, guests are encouraged to slow down and reconnect with their surroundings. Guided meditation, breathwork sessions, and sunset yoga create opportunities for reflection and relaxation. These practices are seamlessly woven into the resort’s environment, offering a sense of serenity that lingers long after the stay.

Under the guidance of Wellbeing Director Artemasius Harefa, Angsana Velavaru’s holistic programmes align with Banyan Group’s Eight Pillars of Wellbeing, with a focus on rest, movement, mindfulness, and connection. The result is a collection of experiences designed to inspire balance and renewal, giving guests the opportunity to embrace a more mindful way of living.

“Modern travellers seek more than rest; they seek renewal,” said Artemasius Harefa, Wellbeing Director at Angsana Velavaru. “Our goal is to create experiences that help guests reconnect with themselves and the natural world, turning wellness into a meaningful way of life.”

At Angsana Velavaru, wellbeing is not a moment but a continuous journey shaped by nature, connection, and the healing spirit of the Maldives.

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Trans Maldivian Airways named World’s Leading Seaplane Operator 2025

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Trans Maldivian Airways (TMA), the world’s largest seaplane operator, has once again strengthened its position as a global aviation leader with new accolades at the World Travel Awards 2025. The airline was named the World’s Leading Seaplane Operator 2025 and the Indian Ocean’s Leading Seaplane Operator 2025, acknowledging its continued contribution to air connectivity across the Maldives. The 32nd Annual World Travel Awards ceremony took place at Exhibition World Bahrain and was attended by more than 300 leaders from the international tourism industry.

Established in 1993, TMA has played a central role in shaping the Maldives’ aviation and tourism sectors. Operating the world’s largest seaplane fleet with 65 DHC-6 Twin Otters and serving over 80 resort destinations, the airline provides vital connectivity across the archipelago with a focus on safety, reliability, and operational efficiency. Conducting more than 400 flights daily, TMA remains essential in enabling access to resort islands nationwide.

Commenting on the achievement, A.U.M. Fawzy, CEO of Trans Maldivian Airways, said: “This prestigious recognition from the World Travel Awards, year after year, reflects the trust placed in our team by our partners and guests, and the responsibility we carry as the primary air service provider connecting resort destinations across the Maldives. At TMA, our focus remains on continuous improvement and building on decades of service excellence. As the tourism industry in the Maldives continues to evolve and grow, we will continue strengthening our operations and supporting the long-term development of the Maldives as a world-leading destination.”

TMA continues to enhance its operational capabilities through ongoing investments in fleet upgrades, infrastructure, staff training, and technology-driven improvements, ensuring it meets rising demand while maintaining its hallmark of dependable service.

As the Maldives prepares for further growth in visitor arrivals, Trans Maldivian Airways remains committed to working closely with industry partners, supporting national tourism objectives, and ensuring a seamless and reliable travel experience for guests visiting the country’s island destinations.

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