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Over 22k Maldivian resort workers face job loss or pay cuts, says bleak UN study

Some 22,000 Maldivians employed in the Indian Ocean tourist paradise’s resorts have lost their jobs or faced income losses due to the coronavirus pandemic, a UN body has said, painting a bleak picture on short term job security and employability in the island nation’s main economic sector.
UNDP said the number would increase to 45,000 plus with the inclusion of foreign employees.
A large number of people working for third-party service providers of the resorts — mostly foreign migrant workers undertaking elementary work such as gardening, cleaning and maintenance — are also affected.
Freelancers, seasonal workers and local vendors providing goods and services to resorts have also lost their income due to the suspension of their services.
Resort employees are either laid off or sent home on no pay. Some are also retained with reduced pay.
“Job loss and redundancy was mostly evident amongst those on probation contracts and amongst younger age groups,” the assessment report, released Thursday, read.
“For those employees who have been retained, a large proportion of employees have lost their incomes completely as majority are put on no-pay for the for the period April-June 2020.”
Employees who lost jobs and are on no pay are expected to experience an average income loss ranging from $600 to $1,000 per month — over 60 per cent of their monthly income — at least until the end of June.
Affected resort workers told the UNDP’s researchers that they would not be able to manage household expenses beyond the first month as they did not have any savings.
“Some of the coping strategies stated indicated reducing household expenses such as postponing renovation planned for their house, postponing holidays, temporary relocation of family from Male to home island due to unaffordability of rent in the greater Male region, postponement of personal loan payments,” the report read.
Bleak forecast
Resorts will be reopened in July with minimal operations and with a skeleton staff structure, UNDP warned, adding that a large number of employees that are currently retained up to the end of June risk losing their jobs after July as resorts may not be able to retain them.
According to the UNDP, short term employability and income opportunity within the tourism industry is uncertain for many including those in job transition.
“Those in job transition phase, have lost jobs, are on no pay, are unemployed and seeking for new jobs and are new entrants to the labour market are amongst those are unlikely to secure employment or incomes in the short term, from the tourism industry,” the report said.
“Freelance service providers and community vendors of goods and services are undergoing multiple challenges with no formal recognition and loss of income affecting their livelihood and wellbeing during this period.”
The Maldives is preparing to reopen its borders to visitors in July.
The country’s tourism ministry has drafted and invited comments from industry stakeholders on its own guidelines on reopening the borders.
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.
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.
Cruise ships and foreign yachts were also banned from docking at any of the country’s ports.
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.
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 1,883.
Seven deaths have been reported and 717 have made full recoveries.
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
Experience timeless Maldivian elegance at Machchafushi Island Resort & Spa

Machchafushi, meaning ‘Fish Island’ in Dhivehi, encapsulates the essence of this serene retreat in South Ari Atoll. As part of The Centara Collection, Machchafushi Island Resort & Spa embodies the true spirit of the Maldives, offering guests an intimate connection with the ocean, marine life, and the island’s cultural heritage.
Situated within the South Ari Marine Protected Area (SAMPA), a UNESCO-recognised site, Machchafushi provides year-round access to remarkable marine experiences, vibrant coral ecosystems, and unforgettable underwater explorations, including the famous Kudhimaa shipwreck. Once a secluded, uninhabited island, Machchafushi holds a special place in the cultural landscape of the Maldives. Today, as part of this protected marine reserve, it continues to remain authentic, sustainable, and deeply rooted in its natural surroundings.
Marine life is at the heart of the Machchafushi experience. The island offers some of the world’s highest whale shark resighting rates, with encounters available throughout the year. Guests may also encounter graceful manta rays and a colourful abundance of tropical fish drifting through crystalline waters. Encircled by a renowned house reef—stretching nearly five times the island’s size—the area is home to over 1,000 species of fish and 200 varieties of coral, creating an underwater paradise.
South Ari Atoll is celebrated as one of the Maldives’ finest diving regions, featuring over fifty dive sites teeming with marine life. Kudarah Thila presents a UNESCO-protected labyrinth of overhangs and swim-throughs populated by fusiliers and snappers, while Broken Rock captivates divers with its dramatic canyon of corals and macro life, ideal for underwater photography. Dhigurah Beyru and Maamigili Corner are noted for encounters with whale sharks, manta rays, and occasionally dolphins. The 52-metre Kudhimaa Wreck has evolved into a thriving coral habitat, now home to lionfish, batfish, groupers, and the well-camouflaged stonefish and frogfish. Nearby, Anemone Alley flourishes beneath the seasonal seaplane platform, forming a vibrant ecosystem that draws snorkellers and divers alike. The house reef remains the beating heart of Machchafushi—a world-class natural wonder beneath the waves.
Beyond the ocean, the island tells a story of its own. At its centre stands a centuries-old Banyan Tree, known locally as the Ummeedhu Tree, or ‘Wish Fulfilment’. This living symbol invites guests to pause and reflect, taking part in the Sacred Thread Ceremony, where wishes and intentions are tied to the tree’s branches—creating a bond that endures long after their stay.
Sustainability is woven into every aspect of Machchafushi’s philosophy, ensuring the preservation of both its natural beauty and cultural legacy. Every sunrise, dive, and golden thread tied to the Ummeedhu Tree becomes part of a continuing narrative—one that celebrates the Maldives’ heritage and invites guests to create lasting memories in harmony with nature.
Entertainment
Spooky celebrations await at Sun Siyam Olhuveli with ‘The Return of the Mummy’

Sun Siyam Olhuveli will transform into a realm of ancient legends and eerie excitement this Halloween with its themed celebration, The Return of the Mummy. Guests of all ages will have the opportunity to take part in two days of themed activities, family games, and live entertainment throughout the resort.
The highlight of the celebration will be a beachfront performance by Swedish DJ and rising international talent Caroline Roxy. A multifaceted artist—DJ, singer-songwriter, producer, fashion designer, and former model—Caroline is known for fusing energetic electronic beats with pop-inspired rhythms. Drawing on her musical upbringing and experience performing at festivals in cities such as Stockholm and Los Angeles, she is set to deliver an electrifying performance that promises to bring a captivating energy to the shores of Sun Siyam Olhuveli.

The festivities will begin on 31 October 2025 with a Halloween Beach Fest, featuring mummy-themed games, pumpkin carving, trick-or-treat adventures, and the popular Mummy Dance Freeze for younger guests. As night falls, the Lagoon Bar will become the centre of the celebration, with flickering lights, pulsing music, and a much-anticipated DJ set by Caroline Roxy. Her performance will combine haunting melodies with powerful electronic rhythms, setting the tone for an unforgettable Halloween evening.
Celebrations will continue on 1 November 2025 with treasure hunts, themed cupcake and marshmallow workshops for children, and a sunset pirate cruise. Adults can take part in a Halloween boot camp before the evening concludes with a fire show and live music by Hightides at the Lagoon Bar.
Blending ancient Egyptian mystery with island charm, The Return of the Mummy at Sun Siyam Olhuveli invites guests to experience a unique Halloween adventure where the legends of the past meet the magic of the Maldives.
Excursions
From first visit to thousand dives: Love story anchored at Bandos Maldives

Bandos Maldives recently marked a significant milestone with two of its most loyal guests, Kate and Andy, who have shared a long-standing connection with the island.
Andy achieved an impressive feat by completing his 900th dive, all undertaken with Dive Bandos. His wife, Kate, surpassed this accomplishment by reaching her 1000th dive, with over 900 of those dives also completed alongside the Bandos team.
The Dive Bandos team joined the couple in celebrating this memorable occasion, recognising not only their dedication to diving but also the enduring bond they have formed with the resort over the years.
Kate and Andy’s relationship with Bandos extends far beyond statistics. Having first visited the island in 2006, they have returned every year since, making Bandos an integral part of their lives. In 2014, the couple even chose to exchange their wedding vows underwater at the resort — a unique moment that forever linked their love story with Bandos.
“Celebrating guests like Kate and Andy reminds us of what Bandos truly represents,” said Ismail Rasheed, General Manager of Bandos Maldives.
For Bandos Maldives, moments such as these exemplify why guests continue to choose the island for both adventure and a sense of belonging. With stories like Kate and Andy’s, Bandos stands not merely as a dive destination, but as a home — both beneath and above the waves.
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