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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
Kuramathi Maldives has announced the arrival of esteemed holistic wellness practitioner Imron Zulfikar, who will undertake an exclusive residency at the resort from 15 December 2025 to 3 January 2026. During this period, guests will have the opportunity to participate in bespoke wellness experiences crafted by a recognised expert in integrative health.
Throughout his residency, Imron will conduct a series of private wellness sessions designed to restore balance, promote renewal, and enhance long-term wellbeing. His practice brings together ancient therapeutic traditions and contemporary fitness science, resulting in personalised programmes that support harmony, mobility, and emotional resilience. Signature offerings include:
- Watsu Water Healing Journey: A restorative treatment conducted in warm water, combining elements of shiatsu, massage, and gentle movement to release deep tension, soothe the nervous system, and foster a sense of tranquillity.
- Chakra Balance Therapy: A holistic session that aligns mind and body through crystal healing, guided meditation, and calming massage techniques.
- Meridian Deep Release Massage: A therapeutic blend of deep tissue massage and acupressure aimed at easing chronic tension, improving flexibility, and stimulating energy flow.
- Accu Glow Facial: A rejuvenating facial incorporating acupuncture and customised skincare to activate collagen production, detoxify the skin, and enhance natural luminosity.
- Oriental Slim Detox Massage: A treatment grounded in Traditional Chinese Medicine, combining acupuncture and massage to promote lymphatic drainage and support detoxification.
Imron is an accomplished wellness lifestyle coach and holistic fitness specialist with more than ten years of experience in acupuncture, tension release therapies, yoga, Pilates, and personal training. His integrative methodology nurtures physical alignment, emotional balance, and overall vitality.
He has worked with numerous luxury resorts and an impressive roster of high-profile clients, including Serena Williams, Emma Watson, Richard Branson, and members of the UAE Royal Family. Celebrated for his intuitive approach and refined technique, Richard Branson has previously referred to Imron as having “golden hands.”
Kuramathi Maldives looks forward to offering guests this exceptional opportunity to engage in transformative, individually tailored wellness experiences during Imron’s residency.
The St. Regis Maldives Vommuli Resort will host World Class Global Bartender of the Year 2025, Felice Capasso, for an exclusive Tastemaker Series collaboration from 4–5 February. The partnership further strengthens the resort’s position as a destination for discerning travellers seeking craftsmanship, cultural depth, and refined experiences.
Located on a private island in the Dhaalu Atoll, The St. Regis Maldives has established a contemporary interpretation of island glamour. Its signature villas include some of the most coveted accommodations in the Indian Ocean, notably the John Jacob Astor Estate—one of the Maldives’ largest overwater residences—and the tranquil, beachfront Caroline Astor Estate. Each estate offers generous living spaces, expansive pools, and panoramic views, reflecting the resort’s dedication to elevated, residential-style luxury.
Within this sophisticated environment, The Whale Bar—an iconic overwater structure—will serve as the setting for Capasso’s arrival. As evening falls, the venue will adopt a vibrant Latin-inspired ambience, where guests will enjoy family-style small plates, bespoke cocktails, and rare vintages on tap while the sunset illuminates the lagoon. In this atmospheric setting, Capasso will unveil an exclusive cocktail menu for his bar takeover, blending classical technique with modern creativity.
On the following day, the resort will host an intimate Masterclass led by Capasso, centred on rum. The session will explore the spirit’s history, its regional expressions, and the narrative approach that distinguishes exceptional mixology. His expertise—rooted in precision, intuition, and storytelling—offers guests a rare opportunity to engage with a leading figure in the global bar industry.
This collaboration forms part of the resort’s ongoing Tastemaker Series, which brings influential creators and innovators to the island. By welcoming talents such as Felice Capasso, The St. Regis Maldives Vommuli Resort continues to craft immersive, evocative experiences that embody the distinctive spirit of St. Regis.
Sun Siyam Olhuveli has introduced three new dining and social venues on its Dream Island — Milano, Olive Bar, and Crust & Flame — each conceptualised by the award-winning Studio Sixty7. Together, the venues bring a contemporary expression of coastal European style to the Maldives, blending refined design, effortless island living, and a sense of community that positions Dream Island as the resort’s newest lifestyle and entertainment hub.
Milano – An Italian Soul with a Front-Row Kitchen
Milano celebrates the warmth and generosity of Italian dining, presented through a coastal aesthetic that feels both relaxed and refined. The open kitchen serves as the heart of the restaurant, where guests can watch chefs craft handmade pasta, simmer traditional sauces, and prepare wood-fired dishes. The experience is intimate and engaging, reflecting the sincerity of Italian cooking.
Studio Sixty7 designed the space with an olive-green palette, arched features, textured off-white plaster, linen drapery, and sculpted timber furnishings. Deep green crittall-style glazing adds a quiet elegance, while patterned floors create a gentle visual rhythm. As evening falls, woven pendant lights warm the room, making Milano ideal for leisurely lunches and romantic dinners. Every design detail balances Italian flair with Maldivian tranquillity.
Olive Bar – The New Entertainment Pulse
At the centre of Dream Island’s social energy, Olive Bar offers a refreshed take on family entertainment, hosting nightly performances from acoustic musicians and cultural acts to lively DJ sets. By day, it provides a relaxed lounge environment; by night, it transforms into a vibrant social hub.
The bar’s design embraces coastal openness, featuring timber shutters, adaptable lounge seating, abundant greenery, and natural textures that reflect Studio Sixty7’s craftsmanship-driven approach. Gentle ambient lighting completes the atmosphere, creating a welcoming setting for conversation, laughter, and shared experiences.
Crust & Flame – Casual, Beachside, and Comfort-Driven
Crust & Flame offers a relaxed beachside dining experience centred around artisanal brick-oven pizzas and contemporary light dishes. Its striking emerald-and-sage terrazzo pizza oven serves as the visual anchor of the venue, glowing subtly in natural light as chefs prepare fresh creations throughout the day.
Muted olive and white tiles, moss-toned upholstery, and dark timber seating create a coastal trattoria feel, while maintaining a distinctly Maldivian beach ambience — toes in the sand, ocean breeze drifting through the space, and a focus on simple, well-crafted comfort food.
Reflecting on the creative direction, Lee McNichol, Co-founder of Studio Sixty7, noted that the aim was to craft spaces that feel like a gentle exhale — warm, textured, softly lit, and subtly inspired by European coastal landscapes. Co-founder Jose Rivero added that the intention was to build venues that feel lived-in and soulful, where guests naturally settle into the experience rather than simply dine or watch a performance.
Hassan Adil, General Manager of Sun Siyam Olhuveli, commented: “Our vision for Dream Island was to create a place where guests immediately feel the rhythm of island life — relaxed, social, and full of positive energy. Milano, Olive Bar, and Crust & Flame each offer something distinct, yet together they form a cohesive atmosphere that encourages connection and enjoyment. It is Olhuveli at its most effortless and playful.”
With the launch of these venues, Dream Island evolves into a dynamic culinary and social destination where design, flavour, and ambience come together seamlessly. This development reflects Sun Siyam Olhuveli’s continued journey toward contemporary lifestyle hospitality, grounded in the warmth and authenticity of Maldivian service.
Sun Siyam Olhuveli now offers more than twenty restaurants and bars across its islands, ensuring an ever-diverse dining landscape shaped by creativity, global influence, and the joy of island living.
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