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Virus crisis forces Maldives to cut public sector wages
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.
Soneva Fushi, situated within the Maldives’ Baa Atoll UNESCO Biosphere Reserve, has been named winner of the SeiBellissimi Art of Hospitality Award as part of The World’s 50 Best Hotels 2025. The accolade is one of two special awards announced ahead of the official ceremony on 30 October. The award is based on votes from more than 800 members of the Academy, who were asked to identify the hotel where they experienced their single-best hospitality moment within the two-year voting period.
The award recognises the quality of service that ensures guests feel cared for throughout their stay. It celebrates the work of a property and its entire team, acknowledging excellence in areas ranging from reception and housekeeping to amenities and food and beverage services. Voters were asked to consider ambience, unique experiential elements, and the warmth of the hospitality on offer.
Soneva Fushi, the original Soneva resort and regarded as the model for barefoot luxury, is located on one of the Maldives’ largest and least developed islands. The resort comprises 71 private villas, either set amidst dense jungle or positioned above the ocean. Guests are invited to embrace a slower pace of life, with experiences ranging from deserted island picnics and wellness treatments at Soneva Soul to curated events under the Soneva Stars calendar.
Emma Sleight, Head of Content for The World’s 50 Best Hotels, said: “This award celebrates the foundation of hospitality and honours the emotional connection that guests have with a hotel and its team. For three decades, Soneva Fushi has been delivering memorable service at the highest level that puts the guest at the heart of every interaction. A mainstay of The World’s 50 Best Hotels list since the awards’ inception, Soneva Fushi is a worthy winner of the SeiBellissimi Art of Hospitality Award, setting a benchmark of all-encompassing excellence one stay at a time.”
Each villa offers extensive indoor and outdoor living space, private pools and ocean views. A distinctive feature of the resort is its Barefoot Guardians – dedicated butlers assigned to each villa to provide personalised service. Available at all times, they arrange every aspect of the guest experience, from zipline adventures and snorkelling at Hanifaru Bay to stargazing at the observatory or dining in one of 14 restaurants. The Barefoot Guardians also manage the Soneva Stars calendar, which hosts international chefs, wellness specialists and sporting figures.
Antony Paton, General Manager of Soneva Fushi, said: “This award belongs to the entire team at Soneva Fushi. It is a reflection of our shared purpose to create moments of joy, connection and wonder every single day. Being recognised by The World’s 50 Best Hotels affirms that the quiet magic we strive for is not only felt by our guests, but remembered. And that, to us, is the greatest reward.”
Giancarlo Mancino, Chief Executive Officer of SeiBellissimi, added: “At Soneva Fushi, hospitality is a seamless extension of a lifestyle deeply rooted in sustainability, wellness and mindful luxury. Founded with a slow life philosophy, every experience here is a tribute to living in harmony with nature, honouring health-conscious principles, and crafting each moment with genuine care. This devotion to sustainable elegance and the art of well-being is the perfect mirror of SeiBellissimi’s own values: Italian craftsmanship, conviviality, and a respect for quality that goes beyond the ordinary.”
The World’s 50 Best Hotels 2025 ceremony will take place at Old Billingsgate in London on Thursday 30 October, where Soneva Fushi will formally receive the SeiBellissimi Art of Hospitality Award.
Minor Hotels, a global hospitality group operating nine resorts in the Maldives, has announced that three of its properties were recognised at the Travel Trade Maldives (TTM) Awards 2025. The annual awards celebrate achievements across 28 categories, with winners selected through votes cast by guests and travel partners.
Niyama Private Islands Maldives received the award for Best Family Resort. The property is known for offering experiences for all ages, with facilities including a playground, splash park, and gourmet kitchen at its children’s club, alongside an extensive schedule of activities. Young guests are provided with age-appropriate experiences such as snorkelling safaris, cooking classes, surf lessons, and outdoor cinema evenings.
Accommodation includes a variety of spacious villas and pavilions, such as the newly renovated Deluxe Family Beach Pool Villa. Combined with diverse dining options, recreational activities, and personalised service, the resort seeks to provide both adventure and relaxation for families.
Avani+ Fares Maldives Resort was named Best Beach Resort, reflecting its setting of white sands, turquoise lagoons, and coconut groves within Baa Atoll, a UNESCO Biosphere Reserve. The resort offers contemporary villas, including Beach Pool Villas and Two-Bedroom Beach Pool Villas, with direct beach access.
Since opening in 2023, Avani+ Fares has aimed to introduce a laid-back approach to Maldivian holidays, combining modern design with the natural environment. Guests can participate in activities ranging from water sports and wellness to dining and cultural programmes.
NH Collection Maldives Havodda Resort was awarded Best Dive Resort, recognised for its accessible house reef and marine biodiversity. Located close to the shoreline, the reef offers opportunities for snorkellers and divers of all levels, with frequent encounters with species such as reef sharks, turtles, rays, and tropical fish.
The resort also provides access to the dive sites of Gaafu Dhaalu Atoll, where PADI-certified instructors guide guests through channels, thilas, and reef walls.
In addition to these three awards, Minor Hotels’ properties received 12 finalist nominations across seven categories. These included its newest addition, NH Maldives Kuda Rah Resort, which was shortlisted in three categories.
The group’s nominations at the TTM Awards 2025 were:
- Best Beach Resort: Avani+ Fares and NH Collection Maldives Havodda
- Best Family Resort: Niyama, Avani+ Fares, and NH Maldives Kuda Rah
- Best Boutique Resort: NH Maldives Kuda Rah
- Best Culinary Resort: Niyama
- Most Picturesque Resort: NH Collection Maldives Havodda
- Best Surf Resort: Niyama
- Best Dive Resort: Avani+ Fares, NH Collection Maldives Havodda, and NH Maldives Kuda Rah
This festive season, Sirru Fen Fushi – Private Lagoon Resort, located in Shaviyani Atoll, Maldives, will host an extensive programme of events under the theme Symphony of the Island. Running from 22 December to 7 January, the schedule brings together globally acclaimed performers and specialists, from award-winning musicians and Michelin-starred chefs to a World Cup football champion, wellness practitioners, mixologists, and even a NASA astronaut.
The resort’s New Year’s Eve celebrations will be headlined by Rami Jaffee, Grammy-winning keyboardist of the Foo Fighters, accompanied by violinist, cellist, and vocalist Jessy Greene (formerly Foo Fighters and Pink), and drummer and producer Erik Aldenius of Billy Idol. The All-Star Band will also feature Todd Morse, multi-instrumentalist and songwriter from The Offspring, and Bill Reynolds, Grammy-nominated bassist and producer, formerly of Band of Horses, creating a powerful line-up to welcome 2026.
Onu Onu Beach Bar will host award-winning bartenders throughout the festive period. On 30 December, Harrison Kenny, associated with the World’s 50 Best Bars, will present alongside Millie Tang, one of Australia’s leading bartenders. On 3 January, Pham Quoc Dat, Head Mixologist at The Haflington in Vietnam (Asia’s 50 Best Bars 2024), will take over the bar with a signature showcase.
Culinary highlights include the arrival of Chef Valentino Cassanelli, Head Chef of Michelin-starred Lux Lucis in Italy, who will collaborate with the resort’s Executive Chef Girish Sharma on 8 and 10 December. Cassanelli will also host his own signature four-course dinner. On 3 January, Jean-Philippe Blondet, Chef Patron of Alain Ducasse at The Dorchester, will present a four-hands dining experience at Azure alongside Chef Girish.
Sports and wellness sessions will be led by Christoph Kramer, Football World Cup Champion and television football expert, former professional tennis player and coach Alexandra Viktorovitch, Traditional Chinese Medicine acupuncturist and trainer Josiah Ngai, and yoga instructor and sound healer Tamuna Lomidze. Guests will be able to book one-to-one sessions throughout the festive programme.
On 6 January, the resort will present a special performance by Daria Pavlenko, Principal Ballerina of the Mariinsky Ballet in St Petersburg.
NASA Astronaut and U.S. Navy officer Dominic Antoneli will share first-hand insights into life in space, recounting stories of exploration and discovery.
The season will begin on 22 December with the island illuminated by festive décor and Christmas Eve sunset drinks at Onu Onu Beach. On Christmas Day, celebrations will include a beach arrival by Santa in Maldivian style, followed by a festive brunch and a lobster and champagne dinner, with entertainment from fire dancers, magicians, and musicians.
The New Year’s programme begins with a sunset journey from Spa Beach to Central Park, before a gala dinner at RAHA Market. The evening will feature the All-Star Band, ballet performances, acrobats, and a fire and laser show, concluding with an after-party to welcome 2026. On 1 January, guests can enjoy a New Year’s brunch accompanied by live jazz and tropical rhythms.
Orthodox Christmas Eve on 6 January will include a gourmet buffet at RAHA Market, seafood dining at Azure, and a performance by ballerina Daria Pavlenko, followed by a beach party with international DJs. On 7 January, celebrations will conclude with a Cristal Champagne golden-hour sunset and beachside à la carte dining.
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