Hotels and guesthouses in the Maldives capital region can apply for permits to host foreign transit passengers, the island nation’s tourism ministry announced Wednesday.

With the Maldives borders reopening on July 15, resorts and hotels on uninhabited islands, as well as liveaboard vessels can begin hosting tourists right away.

Guesthouses and hotels located on inhabited islands will be allowed to reopen on August 1. Passengers on cruise ships and yachts will be barred from disembarking at inhabited islands until then.

Thirty-day free on-arrival visa will be issued to all tourists with a confirmed booking for a stay at any registered tourist facility in the country. The entire holiday has to be booked at a single facility except for transit arrangements.

The island nation’s tourism ministry said Wednesday that hotels and guesthouses in capital Male and its suburbs of Hulhumale and Villimale can ask for a permit to host transit passengers.

The ministry, however, did not disclose details of the permit process.

“… all such guesthouses and hotels shall abide by the standards set forth under Section D2 of the ‘Guidelines for Restarting Tourism in Maldives’,” a statement read.

According to the guidelines, there will be no mandatory quarantine or testing on arrival. Tourists will only have to complete a health declaration form.

But visitors with symptoms of the Covid-19 respiratory disease caused by the novel coronavirus or those travelling with someone who has similar symptoms will be tested at their expense.

The coronavirus outbreak has hit the Maldivian economy hard, as travel restrictions and other preventive measures affected 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, only 382,760 tourists visited the Maldives before the country closed its borders on March 27. It was a 40.8 per cent decline over the 646,092 that visited the Maldives from January to March last year.

With arrival numbers falling, several resorts across the Maldives suspended operations.

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 2,361.

Nine deaths have been reported and 1,944 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 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 were also shut.

Restaurants and cafes in the capital were 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 was also ordered.

These measures allowed authorities to contain the outbreak.

The restrictions are now being eased in phases, with the third phase kicking in from Wednesday.