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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.
This July, Barceló Nasandhura is offering guests a taste of the sweeter side of life through a series of limited-time dessert experiences in the heart of Malé.
In celebration of World Chocolate Day, the hotel hosted a Chocolate Indulgence Station in the Nasandhura Lobby on 7th July. Held from 4:00 PM to 8:00 PM, the event featured handcrafted chocolate desserts and tastings led by Head Pastry Chef Mohammed, a certified Continental Judge in Pastry Arts. The occasion attracted a delightful mix of in-house guests and walk-in visitors, who also enjoyed a specially curated photo setup and the opportunity to purchase exclusive, limited-edition treats.
Additionally, from 4th to 7th July, a dedicated Chocolate Dessert Station was presented at the Oivaru dinner buffet, located on the hotel’s third floor, offering a decadent addition to the evening dining experience.
To conclude the month’s celebrations, guests will be able to enjoy a 10% discount on all ice creams at Alimas Coffee Lounge from 20th to 26th July. Featuring house-made flavours, this offering provides the ideal way to cool off and indulge during the warm island afternoons.
Surrounded by flourishing reefs and pristine islands with the whitest of soft sands and crystal-clear waters, Coco Collection – a leading resort brand in the Maldives – invites guests to delve into the extraordinary underwater world of Coco Palm Dhuni Kolhu.
Nestled within the crown jewel of the Maldives, the Baa Atoll UNESCO Biosphere Reserve, Coco Palm Dhuni Kolhu is renowned for its commitment to everyday sustainability. Setting the standard for sustainable luxury, the resort has once again been recognised as the Maldives’ Leading Green Resort 2025, marking its third consecutive win at the prestigious World Travel Awards.
While the resort continues its efforts to protect and preserve a thriving marine ecosystem, it also encourages guests to immerse themselves in a range of signature marine experiences, all guided by resident Marine Educator Rosalie Bailie and supported by its long-standing partnership with the Olive Ridley Project.
The signature marine experiences include:
- Guided Snorkelling – Guests may explore the house reef or venture to nearby coral gardens with expert guides. These excursions cater to all skill levels and often include sightings of green sea turtles, parrotfish, and, depending on the season, manta rays and eagle rays. Guests may also encounter hawksbill turtles grazing on coral at nearby turtle points.
- Coral Planting & Restoration Workshop – Conscious travellers are invited to participate in meaningful conservation work through coral planting. With the guidance of the Marine Educator, guests can affix coral fragments onto reef frames which are then placed on the seabed, helping to regenerate damaged reefs and enhance marine biodiversity.
- Discover Scuba Diving – From beginners to advanced divers, the island provides access to over 30 dive sites across the region, led by certified PADI instructors. Guests may dive among coral pinnacles, explore historic wrecks, and visit iconic spots such as Hanifaru Bay, famous for sightings of manta rays and whale sharks.
- ORP Marine Turtle Rescue Centre Tour – Home to the Maldives’ first fully equipped, veterinary-run sea turtle rescue centre, Coco Palm Dhuni Kolhu offers guests the chance to engage with rescued turtles recovering from injuries or entanglements. Through this partnership with the Olive Ridley Project, guests can feed turtles, learn about conservation challenges, adopt a turtle, and contribute to protecting this endangered species.
- Night Snorkelling – For a truly unique underwater adventure, the resort offers night snorkelling excursions led by the Marine Educator. As the reef transforms after sunset, guests will discover a different side of marine life, spotting lionfish, resting parrotfish, and other nocturnal sea creatures illuminated by torchlight.
Located in one of the world’s most spectacular hubs of marine biodiversity, Coco Palm Dhuni Kolhu promises an unforgettable escape. With the Discover Coco offers, travellers can enjoy 35% savings on their villa stay, making it the perfect time to plan an extraordinary Maldivian getaway.
Nestled in the heart of the Malé Atoll, the Maldivian-owned resort Coco Bodu Hithi warmly welcomes couples to embrace romance and tranquillity this summer in one of the world’s most idyllic island getaways.
Far removed from the bustle of city life, Coco Bodu Hithi serves as a sanctuary where intimacy, nature, and luxury coexist in perfect harmony. Designed for couples in search of meaningful moments, the island offers a captivating escape – from peaceful barefoot strolls and shared experiences to thrilling adventures.
Recently named the Indian Ocean’s Most Romantic Resort at the 2025 World Travel Awards for the third consecutive year, Coco Bodu Hithi artfully blends modern comforts with traditional Maldivian charm. The resort boasts 98 expansive villas, each offering direct access to either the beach or lagoon. Thoughtfully designed to ensure privacy and relaxation, every villa promises a sense of seclusion and serenity.
Amongst the resort’s most celebrated accommodations are the Beach Villa with Pool and the iconic Coco Residence, both of which offer sweeping, uninterrupted views of the Indian Ocean. These settings provide a picture-perfect backdrop for couples to reconnect, with each moment shaped by a spirit of warm island hospitality that is both personal and unmistakably Maldivian.
Honoured as the Best Service Resort at the Condé Nast Johansens Awards for Excellence 2025, Coco Bodu Hithi presents a carefully curated selection of personalised romantic experiences. Guests may begin the day with a floating breakfast in their private pool, enjoy a five-course candlelit dinner beneath the stars at Pergola, or embark on a serene sunset cruise – each moment tailored to celebrate connection in the most memorable ways.
Celebrated by Weddings & Honeymoons magazine as one of the Top 50 Honeymoon Resorts in the World, Coco Bodu Hithi offers an exquisite backdrop for couples to honour their love. The thoughtfully designed Forever Yours Package delivers a romantic destination wedding experience in the Maldives, with a dedicated team attending to every detail. The package seamlessly blends the island’s natural beauty with traditional elements, all personalised to reflect the couple’s unique story, style, and preferences.
With its heartfelt hospitality, refined elegance, and awe-inspiring surroundings, Coco Bodu Hithi offers the ideal setting to begin a new chapter of togetherness – a private Maldivian paradise where timeless romance truly comes to life.
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