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Coronavirus will cost global tourism at least $1.2 trillion, UN agency warns
The world’s tourism sector could lose at least $1.2 trillion, or 1.5 per cent of the global gross domestic product (GDP), having been placed at a standstill for nearly four months due to the coronavirus pandemic, according to a report Wednesday from the United Nations Conference on Trade and Development.
The UNCTAD warned that the loss could rise to $2.2 trillion or 2.8 per cent of the world’s GDP if the break in international tourism lasts for eight months, in line with the expected decline in tourism as projected by the UN World Tourism Organisation (UNWTO).
UNCTAD estimates losses in the most pessimistic scenario, a 12-month break in international tourism, at $3.3 trillion or 4.2 per cent of global GDP.
Tourism is a backbone of many countries’ economies and a lifeline for millions of people around the world, having more than tripled in value from $490 billion to $1.6 trillion in the last 20 years, according to UNWTO.
But Covid-19 has brought it to a halt, causing severe economic consequences globally.
Prevailing lockdown measures in some countries, travel restrictions, reductions in consumers’ disposable income and low confidence levels could significantly slow down the sector’s recovery.
Even as tourism slowly restarts in an increasing number of countries, it remains at a standstill in many nations.
“These numbers are a clear reminder of something we often seem to forget: the economic importance of the sector and its role as a lifeline for millions of people all around the world,” UNCTAD’s director of international trade Pamela Coke-Hamilton was quoted in a statement, as saying.
“For many countries, like the small island developing states, a collapse in tourism means a collapse in their development prospects. This is not something we can afford.”
Developing countries could suffer the steepest GDP losses.
Jamaica and Thailand stand out, losing 11 per cent and 9 per cent of GDP respectively in the most optimistic scenario of UNCTAD’s estimates. Other tourism hotspots such as Kenya, Egypt and Malaysia could lose over three per cent of their GDP.
But the tourism sector in many rich nations will also feel the squeeze.
Popular European and North American destinations, including France, Greece, Italy, Portugal, Spain and the United States could lose billions of dollars due to the dramatic drop in international tourism, according to UNCTAD forecasts.
Impact on other sectors, jobs and wages
Travel and tourism account for a significant share of global GDP and more than half of many countries’ national income.
Coronavirus-induced losses in tourism have a knock-on effect on other economic sectors that supply the goods and services travellers seek while on vacation, such as food, beverages and entertainment.
UNCTAD estimates that for every $1 million lost in international tourism revenue, a country’s national income could decline by $2 million to $3 million.
The massive fall in tourist arrivals has also left a growing number of skilled and unskilled workers unemployed or with less income.
UNCTAD estimates show that in the worst-affected countries, such as Thailand, Jamaica and Croatia, employment for unskilled workers could decrease at double-digit rates even in the most moderate scenario.
In the case of wages for skilled workers, the steepest drops could be seen in Thailand (-12 per cent), Jamaica (-11 per cent) and Croatia (-nine per cent), in the optimistic case, doubling or tripling in the worst scenario.
The effects could be particularly negative for women, who are expected to be disproportionately affected by layoffs in tourism due to Covid-19, according to the report.
Women are more likely than men to be entrepreneurs in tourism and make up about 54 per cent of the workers in the accommodation and food services sectors.
And because many women in the sector work informally in low-skilled jobs, they are less likely to have unemployment benefits or other safety nets.
“This is why women are particularly hard hit in this crisis. And this is why policies that help protect the sector also protect the economic empowerment that many of these women have long fought for,” Coke-Hamilton said.
Maldives continues to suffer
The UNCTAD report shows that inbound tourism accounts for 58 per cent of the Maldives GDP.
The report, however, does not specify the impact of Covid-19 on Maldives tourism and its economy.
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, 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 2,382.
Ten deaths have been reported and 1,954 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.
The Maldives is also preparing to reopen its borders on July 15.
Recovery support needed
UNCTAD calls for strengthened social protection in the affected nations to prevent the worst economic hardship for people and communities that depend on tourism.
It urges governments to protect workers. Where some enterprises are unlikely to recover, wage subsidies should be designed to help workers move to new industries.
Governments should also assist tourism enterprises facing the risk of bankruptcy, such as hotels and airlines. One approach for financial relief is low-interest loans or grants, the report states.
In addition, UNCTAD calls on the international community to support access to funding for the hardest-hit countries.
Cover photo: Mihaaru News
The Maldives continues to strengthen its position as one of the world’s premier island destinations, achieving global acclaim while maintaining steady growth in visitor arrivals. The country was recently named Best Beach Destination at the World Tourism Awards 2025 in Brussels and ranked among the Top Ten Countries for Food in the Condé Nast Traveller Readers’ Choice Awards 2025.
According to the Ministry of Tourism, the Maldives recorded over 1.7 million tourist arrivals as of 21 October 2025 — a 10% year-on-year increase. The destination is on course to meet its ambitious target of 2.3 million arrivals by year-end, with the final quarter expected to bring the highest influx of visitors as the nation enters its peak travel season.
Sustained demand from key markets including India, China, Russia, and the United Kingdom, alongside rising interest from the Middle East and Europe, continues to fuel this growth. The trend reflects a broader global shift towards experience-led travel, where visitors seek meaningful, immersive stays rather than conventional leisure holidays.
As arrival numbers climb, the focus within the Maldives tourism industry is evolving from volume to value. Hospitality brands are responding by offering experiences that highlight authenticity, sustainability, and cultural engagement. Among them, Cinnamon Hotels & Resorts — which operates four properties across the Maldives — is redefining the concept of island travel through wellness, cuisine, and culture.
The brand’s approach extends beyond accommodation, curating distinctive experiences that deepen the guest journey. From spa rituals rooted in Asian wellness traditions at Mandara Spa and Chavana Spa to private beachfront dinners celebrating the region’s rich culinary heritage, each stay is designed to be both restorative and enriching. Guests who book directly also receive exclusive credits and tailored experiences, reinforcing the Maldives’ growing appeal as a destination for conscious and immersive travel.
This direction mirrors the Maldives’ evolving tourism strategy, which prioritises authenticity and quality over volume. As the nation edges closer to another record-breaking year, its success lies not only in the number of arrivals but in its ability to offer enduring, high-calibre experiences — a vision shared by Cinnamon Hotels & Resorts as it continues to shape the future of island hospitality across the region.
As one of the most notable occasions in the GCC calendar, UAE National Day presents the perfect opportunity to plan a dream island getaway at one of Centara Hotels & Resorts’ Maldivian destinations. Travellers can discover their own piece of paradise across four distinctive properties: Centara Grand Lagoon Maldives, Centara Mirage Lagoon Maldives, Centara Ras Fushi Resort & Spa Maldives, and Machchafushi Island Resort & Spa Maldives, The Centara Collection. Each resort offers a seamless blend of elegance, comfort, island activities, and rejuvenating spa experiences — the ideal way to celebrate the spirit of the occasion with a tropical touch.
Centara Grand Lagoon Maldives
Located a short speedboat ride from Malé International Airport, Centara Grand Lagoon Maldives provides an elegant island retreat ideal for celebrating special moments with family and friends. The resort features a range of overwater villas and beachfront residences, each complete with a private pool, jacuzzi, or both — offering guests an opportunity to truly unwind and disconnect from the outside world.
Set within The Atollia by Centara Hotels & Resorts, the resort offers an array of experiences, from exciting water sports and excursions to restorative wellness treatments at the tranquil SPA Cenvaree Retreat. Dining choices include international buffets at The Gallery, modern Mediterranean flavours at Bluefin, and light bites at Coco Drift’s swim-up bar. Guests can also toast to the occasion with a refreshing drink at Sunset Social.
In celebration of UAE National Day, Centara Grand Lagoon Maldives invites guests to reconnect with loved ones through an exclusive stay package. Guests booking before 15 December for stays until 20 December can enjoy four nights for the price of three or seven nights for the price of five, with complimentary round-trip transfers included.
Additional benefits include:
- Upgrade to the Half Board Plus meal plan when booking a Room with Breakfast
- Club access
- Complimentary sparkling beverage at Sunset Social on the first evening
- One complimentary couples’ treatment at SPA Cenvaree Retreat
- A 15% discount and triple points for CentaraThe1 members
Centara Mirage Lagoon Maldives
Nestled in the scenic North Malé Atoll, Centara Mirage Lagoon Maldives offers a vibrant, underwater world-themed escape perfect for families. The resort combines play and relaxation through its lazy river, splash zones, and water playgrounds, alongside the acclaimed SPA Cenvaree, a Candy Spa for children, and a lively kids’ club. Accommodation includes oceanfront and overwater villas, complemented by diverse dining experiences.
Families can enjoy the ultimate island holiday where children stay, play, and dine for free on all stays before 15 December. Perfect for the UAE National Day long weekend, the offer includes:
- Special room rates
- Complimentary round-trip speedboat transfers
- Free stays and meals for up to two children aged 11 and under
- A 15% discount and triple points for CentaraThe1 members
Centara Ras Fushi Resort & Spa Maldives
For couples and solo travellers seeking tranquillity, Centara Ras Fushi Resort & Spa Maldives offers an adults-only sanctuary designed for relaxation and connection. Guests can wake to panoramic sea views from oceanfront or overwater villas with direct lagoon access. The resort features world-class dining, a yoga pavilion, award-winning SPA Cenvaree, and water sports including windsurfing, parasailing, and snorkelling.
To mark UAE National Day, guests can take advantage of 30% off all villas (and 45% off for CentaraThe1 members), along with 50% off transfers for stays of two to four nights. The package also includes:
- Sparkling beverage and fresh fruit upon arrival in overwater villas
- A three-course poolside dinner under the stars for Half Board Plus guests and above
- Buy-one-get-one-free spa treatments
- 20% discount on food and beverages
- 10% off water sports and excursions
- Complimentary snorkelling and kayaking equipment
Bookings and stays are valid until 10 January 2026.
Machchafushi Island Resort & Spa Maldives, The Centara Collection
Set amidst breathtaking ocean views and a UNESCO-protected marine reserve, Machchafushi Island Resort & Spa Maldives, The Centara Collection caters to adventure seekers and nature enthusiasts alike. Home to an award-winning house reef and several renowned dive sites, guests can spend their days exploring coral reefs or discovering a historic shipwreck, followed by spa treatments and gourmet dining.
Guests can enjoy 45% off flexible rates for CentaraThe1 members and 30% off for non-members, along with 30% off seaplane transfers for stays of two to six nights until 10 January 2026.
The offer includes:
- Handmade chocolates and tropical fruit upon arrival in overwater or pool villas
- A complimentary picnic lunch for families or a private beach dinner for couples (Half Board Plus and above)
- Buy-one-get-one-free spa treatments
- Complimentary stays and meals for children aged six and under
- 20% discount on à la carte dining and floating breakfasts (Club Pool Villas only)
- 10% discount on water sports and excursions
- Complimentary snorkelling gear and kayak use
For more information or reservations, guests can visit Centara Hotels & Resorts and explore exclusive UAE National Day offers available across all Maldivian properties.
One&Only Reethi Rah invites guests to continue their wellness journey at the renowned One&Only Spa, which has recently received a prestigious five-star rating from the Forbes Travel Guide — the first and only spa in the Maldives to earn this recognition. Surrounded by tropical greenery, the spa offers a tranquil retreat where ancient healing practices meet modern techniques, providing tailored treatments that promote lasting wellbeing.
Throughout the year, One&Only Reethi Rah has hosted leading international wellness practitioners, and the remainder of 2025 will feature an inspiring series of experiences guided by acclaimed experts. From holistic therapies and Ayurveda to Pilates, yoga, Barre, and CrossFit, each visiting specialist brings unique expertise and methodology to the island, delivering highly personalised sessions designed around each guest’s individual needs.
Beginning in October, Ayurveda specialist Dr Shreejit Ghadigaonkar will offer personalised consultations and treatments based on one of the world’s oldest healing systems, using herbal remedies, massage, and holistic therapies to restore balance. During the same period, Shannon Fenton, a Pilates and yoga instructor, will lead mindful movement sessions to enhance posture, body awareness, and overall wellbeing.
In November, bespoke fitness coach Nicky Holender will introduce tailored programmes focused on strength, endurance, and motivation, while holistic therapist Darya Gudkova will offer deeply restorative treatments combining Eastern traditions with a contemporary understanding of anatomy and psychology.
The season will continue into December and January with Sanam Heravi, a STOTT-certified Barre specialist, whose sessions use intelligent movement to support rehabilitation and life transitions. Guests seeking high-intensity training will be able to train with Zubaid Toefy, a CrossFit coach with a background in Muay Thai and Olympic weightlifting, known for his dynamic and disciplined approach.
Each visiting practitioner contributes distinct expertise to the spa’s offerings, enabling guests to explore individual paths towards vitality, clarity, and inner balance
Whether guests are beginning a new wellness journey or deepening established rituals, the One&Only Spa provides a setting for intentional transformation. From sunrise yoga sessions to deeply restorative treatments, every moment is designed to strengthen the connection between mind, body, and nature within the serene environment of the Maldives.
For guests seeking advanced skincare, the spa also presents a curated selection of facial treatments that combine cutting-edge technology with high-performance formulations. Through partnerships with globally renowned brands such as Augustinus Bader, the spa offers rejuvenating therapies that leave the skin feeling nourished, firm, and radiant.
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