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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 warmer season has officially arrived in the GCC, and for those still planning a summer getaway, Centara Hotels & Resorts’ Maldivian destinations offer the perfect escape. With something to delight every traveller, guests can book a stay at Centara Grand Lagoon Maldives or Centara Mirage Lagoon Maldives, both located within The Atollia by Centara Hotels & Resorts, where endless adventure awaits. For an adults-only retreat, Centara Ras Fushi Resort & Spa Maldives provides a serene paradise, while Machchafushi Island Resort & Spa Maldives, The Centara Collection, invites travellers to explore a world of underwater wonders and rejuvenating wellness experiences.
The Atollia by Centara Hotels & Resorts
Surrounded by a shimmering lagoon, The Atollia by Centara Hotels & Resorts is a multi-island, world-class destination that hosts two distinct resorts. Centara Mirage Lagoon Maldives is a popular choice for families, featuring a lazy river, water playground, a vibrant kids’ club, and a selection of oceanfront or overwater villas along with diverse dining options. In contrast, Centara Grand Lagoon Maldives offers an idyllic island escape with elegant overwater and beach villas and residences, exceptional culinary experiences, tranquil pools, and the acclaimed SPA Cenvaree Retreat.
Regardless of the chosen property, guests enjoy access to both resorts, ensuring a unique and flexible holiday experience. To further enhance their stay, visitors can select The Atollia Destination Full Board Plus package—ideal for sampling the island’s culinary offerings—or opt for the All-Inclusive package, which includes a daily replenished minibar.
Centara Grand Lagoon Maldives
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Centara Mirage Lagoon Maldives
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Centara Ras Fushi Resort & Spa Maldives
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Booking dates: From now until January 10th, 2026
Stay dates: From now until January 10th, 2026
Offer:
- 45% off on all villas for CentaraThe1 Members
- 30% off for non-members
- 50% off on transfers with a minimum 2 nights to a maximum 4 nights
- Sparkling grape & fruit basket upon arrival in Overwater villas
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- Buy one and get one on select spa treatments
- Special evening turndown service with bed decoration on arrival night
- 20% discount on Food & Beverage from all outlets’ a la carte menu
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Machchafushi Island Resort & Spa Maldives, The Centara Collection
Situated in the South Ari Atoll, Machchafushi Island Resort & Spa Maldives, The Centara Collection, is more than just a destination—it is a living expression of the Maldivian way of life, where nature and culture exist in perfect harmony. With a strong commitment to environmental stewardship, the resort encourages guests to disconnect from the outside world and embrace a life in sync with their surroundings. Guests can choose from 112 elegantly designed beachfront and overwater villas, each offering sweeping views of the Indian Ocean and the nearby UNESCO-protected marine reserve.
During their stay, visitors are invited to explore vibrant coral reefs and marine life through activities such as snorkelling, semi-submarine tours, kayaking, and paddleboarding. A highlight of the reef is a shipwreck located just 30 metres from the harbour channel, teeming with glassfish, resting nurse sharks beneath the hull, and stonefish camouflaged along the deck. For those seeking a deeper connection, the resort also offers the Blessing Ritual—a reflective tradition held beneath a 200-year-old sacred tree, where guests can tie personal wishes to its branches in a symbolic act of clarity, intention, and connection.
Machchafushi Island Resort & Spa Maldives offers an extraordinary escape, with CentaraThe1 members enjoying 45% off flexible rates on meal plans, and non-members receiving 30% off, along with an additional 30% discount on seaplane transfers. From the moment of arrival—greeted by handmade chocolates and fresh tropical fruit in the villa—guests are immersed in the magic of island life. Days can be spent snorkelling vibrant reefs, paddling through turquoise waters, or exploring the lush landscapes, followed by relaxing spa treatments with a buy-one-get-one offer, or cocktails at 20% off across all à la carte dining venues.
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Booking dates: From now until January 10th, 2026
Stay dates: From now until January 10th, 2026
Offer:
- 45% off Flexible Rates on Meal Plans for CentaraThe1 Members
- 30% off Flexible Rates on Meal Plans non-members
- 30% discount on seaplane transfers for all guests with a minimum stay of 2 to 6 nights
- Homemade chocolates & fruit basket upon arrival in Overwater and Club Pool Villas
- One free picnic lunch – for the whole family (Half Board Plus and above) or one 3-course private beach dinner under the stars for couples (Half Board Plus and above)
- Buy one and get one on select spa treatments
- Kids 6 years and below Stay & Eat for Free as per the meal plan booked by parents
- 20% special discount on indulging floating breakfast (Only in Club pool villas)
- Special evening turn-down service with bed decoration on arrival night
- 20% discount on Food & Beverages in all outlets on the à la carte menu
- 10% discount on Water Sports and Excursions
- Complimentary use of snorkelling gear, pedalo and Kayak
*For bookings and more information, please click here.
Drink
Sommeliers and hospitality leaders to gather at Ifuru Island for exclusive Liquid Tasting Event
Ifuru Island Maldives has announced the upcoming Raa Atoll Liquid Tasting, an exclusive gathering of sommeliers, F&B professionals, and hospitality leaders scheduled for 26 June 2025. This distinguished event is being presented in collaboration with The Liquid Concept, a premium beverage platform celebrated for its concept-driven approach to wine and spirits curation across the Indian Ocean region.
Established in 2021, The Liquid Concept delivers a comprehensive 360-degree beverage experience. Its portfolio includes fine wines, artisanal spirits, grower and grand marque Champagnes, vermouths, low- and no-alcohol alternatives, and innovative beverage solutions designed for hospitality and lifestyle destinations. The platform’s mission is to transform the beverage experience through purposeful curation, sustainable innovation, and immersive storytelling.
Set against the breathtaking backdrop of Ifuru Island, the tasting event will feature over 40 exceptional wine labels sourced from around the world. These selections, drawn from The Liquid Concept’s intentionally curated portfolio, invite attendees on a sensory exploration of diverse terroirs, winemaking philosophies, and compelling narratives.
Enhancing the tasting experience, guests will be treated to a specially crafted three-course menu, thoughtfully designed to complement and elevate the wine pairings. This harmonious fusion of food and beverage aims to showcase the artistry of hospitality and refined palate engagement.
As part of a shared commitment to innovation and sustainability, Ifuru Island and The Liquid Concept will also introduce the Bermar Wine & Champagne Preservation System during the event. This advanced technology enables the preservation of opened wines and champagnes, offering resorts a smart, eco-conscious solution to minimise waste and improve wine-by-the-glass service.
The Raa Atoll Liquid Tasting is an invitation-only event, poised to become a signature occasion that reflects Ifuru Island’s dedication to elevating the culinary and beverage scene in the Maldives.
Pullman Maldives Maamutaa is inviting travellers to experience the extraordinary with the unveiling of its vibrant Maamutaa House Reef — a thriving underwater ecosystem situated just 100 meters from the resort’s shoreline. Boasting rich marine biodiversity and easy access, this reef presents a rare opportunity to explore the aquatic wonders of the Maldives without venturing far from shore.
The reef is home to an impressive array of marine life, including graceful green and hawksbill turtles, blacktip and whitetip reef sharks, schools of colourful parrotfish and angelfish, as well as occasional sightings of eagle rays and octopuses. According to the resort’s in-house marine biologist, the reef is not only highly accessible but also remarkably active, offering guests the chance to engage directly with a thriving marine ecosystem.
Visitors begin their journey with a swim through a flourishing seagrass bed — a crucial habitat in its own right — before reaching the reef drop-off, where the underwater spectacle unfolds. The reef’s hard and soft coral formations remain in excellent condition, protected by the atoll’s geography and sustained by strong ocean currents.
From July 13 to 20, 2025, Pullman Maldives Maamutaa will host Aqua Week 2025, an immersive celebration of underwater discovery, innovation, and environmental responsibility. This event marks the official launch of Phase 1 of the resort’s Seagrass Mapping & Awareness Project, offering guests the opportunity to participate in guided snorkeling tours, collect visual data, and learn about the importance of seagrass meadows in supporting marine biodiversity and mitigating climate change.
Aqua Week will also feature several high-profile collaborations. Insta360 will lead underwater content creation workshops, enabling guests to capture their marine adventures in 360-degree detail. Edge K5 will provide smart drive underwater scooters for a more dynamic exploration of the reef. Additionally, certified mermaid Gloria Xue will offer mermaid classes, host underwater photoshoots, and perform captivating mermaid shows in the resort’s Aqua Villa.
Bringing together sustainability, technology, and immersive storytelling, Aqua Week 2025 promises to be a memorable celebration beneath the waves.
As part of its broader commitment to environmental sustainability and in line with Green Globe’s certification standards, Pullman Maldives Maamutaa has launched a comprehensive three-phase Seagrass Mapping & Awareness Project. The initiative aims to highlight the ecological significance of seagrass meadows, which serve as nurseries for marine life and play a key role in carbon sequestration.
The project includes:
- Phase 1 (July): Seagrass identification and mapping in collaboration with resort staff and guests.
- Phase 2 (August–September): Guided snorkeling tours to collect visual data and raise awareness, continuing during Aqua Week.
- Phase 3 (October): The premiere of a short documentary film that captures the project’s progress and outcomes.
- This initiative not only contributes to the protection of a vital marine habitat but also encourages guest participation in meaningful conservation efforts.
The reef at Pullman Maldives Maamutaa serves as the foundation for a range of signature guest experiences designed to educate, inspire, and engage:
- Expert-led guided snorkeling tours
- Discover Scuba Diving (DSD) sessions directly from the beach
- Night snorkeling under UV light to reveal biofluorescence
- Citizen science programs focused on seasonal seagrass research
- Kids’ Ocean Explorers — a playful educational program tailored for young marine enthusiasts
Whether seasoned divers, casual snorkellers, or curious beginners, guests at Pullman Maldives Maamutaa can enjoy direct access to the wonders of the Indian Ocean with ease and unforgettable reward.
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