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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
JW Marriott Kaafu Atoll Island Resort has announced an exclusive partnership with BABOR, the internationally acclaimed German skincare brand, marking a new chapter in luxury wellness in the Maldives. This collaboration introduces BABOR’s high-performance skincare treatments to the Overwater Spa by JW, offering guests a fusion of advanced formulations and tranquil island experiences.
According to Srikanth Devarapalli, General Manager of JW Marriott Kaafu Atoll Island Resort, the partnership reflects the resort’s dedication to mindful living, sustainability, and holistic well-being. “Together, we are redefining wellness with transformative treatments at Spa by JW, that harmonise precision skincare with the serene beauty of the Maldives,” Devarapalli noted.
As a first for the country, the resort will offer BABOR’s signature treatments, including the prestigious SeaCreation line. This anti-aging collection utilises marine-based biotechnology and potent oceanic ingredients to revitalise the skin and restore its radiance.
The exclusive Ocean Bliss treatment, crafted specifically for the Overwater Spa by JW, blends BABOR’s SeaCreation products with soothing elements inspired by the surrounding ocean. This luxurious ritual promises visible skincare results and deep relaxation, set within the spa’s four overwater villas, which house six treatment rooms designed to enhance the sensory connection with the Maldivian seascape.
Located in Kaafu Atoll’s largest lagoon and only 15 minutes by boat from Velana International Airport, the JW Marriott Kaafu Atoll Island Resort offers a harmonious blend of luxury and nature. The resort features 80 private pool villas—including 47 overwater pool villas—that merge traditional island design with contemporary elegance. Guests can explore five distinct dining venues and two bars, each showcasing ingredients sourced from the resort’s own JW Garden.
For BABOR, this partnership marks an important step in its global expansion, solidifying its presence in the luxury wellness market and extending its award-winning skincare offerings to one of the world’s most stunning destinations.
Tim Waller, Co-CEO of BABOR BEAUTY GROUP, highlighted the significance of this collaboration: “In today’s fast-paced world, true luxury lies in moments of tranquility and self-care. Our partnership with JW Marriott Kaafu Atoll Island Resort allows us to craft those moments, offering guests a skincare experience that is as indulgent as it is results-driven.”
With a shared commitment to excellence, JW Marriott Kaafu Atoll Island Resort and BABOR now invite travellers to embark on a wellness journey where cutting-edge skincare and the pristine beauty of the Maldives come together in perfect harmony.
With its postcard-perfect scenery and tranquil seclusion, the Maldives has long been a dream destination. Today, it’s also becoming a premier getaway for families, where multigenerational travel and immersive experiences take centre stage. Whether stargazing from a hammock by the shore or diving into coral-fringed lagoons, the islands offer a harmonious blend of peace and adventure—creating meaningful moments for travellers of every age.
This summer is all about togetherness, whether with family, grandparents, or lifelong friends. Marriott Bonvoy’s exclusive private island resorts across the Maldives welcome guests with the new Family Fun Summer offer. Each resort is easily accessible by speedboat or seaplane and includes a complimentary Full Board upgrade, free stays and meals for children under 12, and activities such as snorkelling, paddle-boarding, and kayaking. Curated family adventures add to the appeal, with the offer bookable until June 15, 2025, for travel through December 20, 2025 (minimum four-night stay required).
The Ritz-Carlton Maldives, Fari Islands invites families to reconnect through refined service, striking architecture, and enriching activities. The Ritz Kids program, part of Jean-Michel Cousteau’s Ambassadors of the Environment, engages children in marine conservation and cultural immersion. Complimentary Coral Garden Snorkelling and nature-inspired activities unfold alongside beach fun and tennis sessions. The resort offers spacious beach and overwater villas, with larger groups enjoying The Ritz-Carlton Estate—complete with a private chef, infinity pool, and dedicated Aris Meeha butler.
JW Marriott Kaafu Atoll Island Resort sits in Kaafu Atoll’s largest lagoon, blending Maldivian tradition with stylish luxury. The Family by JW™ Kids’ Club provides a large indoor-outdoor playground with water features, reading spaces, and nap areas. Complimentary water-sports, marine life encounters, and a Maldivian cooking class offer rich experiences. Families may opt for the Ocean Residence, which includes a spa room, gym, and a waterslide into the lagoon.
Sheraton Maldives Full Moon Resort & Spa, located on Furanafushi Island, offers rustic-chic villas and heartfelt island experiences. The ‘Side by Side’ program includes beach picnics, cooking classes, and nature walks, while kids enjoy the Sheraton Adventure Club. The Family Fun Summer offer includes complimentary speedboat transfers, dining credits, spa discounts, and cultural experiences such as coral planting through ‘Adopt a Coral’.
The St. Regis Maldives Vommuli Resort, set on a remote island in Dhaalu Atoll, is designed for luxurious family escapes. Multi-bedroom villas offer privacy and panoramic ocean views. Guests enjoy curated experiences including private yacht trips, snorkeling, and trampoline classes. Children receive personalized welcomes and can explore the Children’s Club or socialize in the teen lounge. The Family Fun Summer package includes Champagne on arrival and a Sunset Dolphin Cruise.
JW Marriott Maldives Resort & Spa on Vagaru Island, Shaviyani Atoll, is ideal for multigenerational families. Beach and overwater villas include private pools and Thakuru butlers. Children explore over 100 weekly activities at the expansive Little Griffins Kids’ Club. Adults unwind at Spa by JW or savor farm-to-table cuisine. The family package features floating breakfasts, beachfront dinners, professional photography, and exclusive dining offers.
W Maldives, located on a heart-shaped island in North Ari Atoll, brings bold energy to the tropics. A recent renovation introduced the Splinterworks Vertex—Maldives’ first sculptural water slide. The redesigned villas, dynamic dining, and the WET Deck with vibrant nightlife offer a balance of fun and relaxation. Guests also enjoy a Sunset Dolphin Cruise and access to the stunning house reef at DOWN UNDER.
The Westin Maldives Miriandhoo Resort in Baa Atoll, the country’s first UNESCO Biosphere Reserve, offers a wellness-focused family retreat. Guests sleep soundly with Westin’s signature Heavenly® Beds and Sleep Well amenities. Kids benefit from the Savvy Sleep program, while the whole family can join yoga classes or recharge with WestinWORKOUT® activities. The summer offer includes painting sessions, dolphin cruises, photo shoots, and beach games.
Le Méridien Maldives Resort & Spa on Thilamaafushi Island, Lhaviyani Atoll, is a stylish, eco-conscious retreat inspired by the French Riviera. Families enjoy creative workshops, conservation projects, and lively events like pool parties, trivia nights, and stargazing. The Family Fun Summer package offers paddleboarding, snorkeling, padel matches, karaoke, and dolphin cruises—all set against serene turquoise waters and a thriving house reef.
Marriott Bonvoy members can earn and redeem points for their stays and experiences at these luxurious family-friendly resorts. Booking a multi-bedroom villa includes an added bonus of 25,000 points—making each family journey even more rewarding.
Renowned for its exceptional Thai hospitality and authentic Maldivian experiences, Machchafushi Island Resort & Spa Maldives, The Centara Collection, stands out as a premier destination for all occasions. Surrounded by turquoise blue waters and pristine white beaches, this tropical paradise invites guests to partake in a vibrant celebration of Songkran, the Thai New Year, on April 13th. The festivities include a traditional parade, thrilling activities, and a lavish dinner buffet under the stars, all complemented by signature island adventures.
Located in the heart of the Indian Ocean, the resort features 112 spacious beachfront and overwater villas, each just steps from a lively house reef waiting to be explored. Guests can enjoy a range of culinary experiences across the island, from authentic Thai cuisine at Suan Bua, to Italian dishes at Mare Azzurro, and international favourites at Reef. As an all-inclusive retreat, the resort caters to every type of traveller—whether couples seeking romance or families in search of discovery and fun-filled days.
On April 13th, the Songkran celebrations begin with a colourful parade featuring performers dressed in traditional Thai attire. Guests can then head to Water Sport Beach for an exciting array of traditional Thai games, such as Wing Sam Ka (three-legged race), Chuk Kra Yoa (tug of war), and Yeab Look Pong (bomb balloon), where participants tie balloons around their ankles and try to pop those of their opponents.
As the sun sets and the stars emerge, guests are treated to a sumptuous buffet-style dinner celebrating Songkran. Live cooking stations serve favourites like authentic pad Thai, sticky rice, and flavourful clay pot dishes. Grilled meats and fresh seafood are served alongside Thai-inspired desserts such as Kanom Tuay (steamed coconut custard) and Kluay Tab (grilled banana with honey caramel). With toes in the sand and the soothing sound of waves nearby, it offers the perfect atmosphere to gather with loved ones and savour the festivities.
In addition to the Songkran celebrations, April presents ideal diving conditions for those eager to explore the house reef. With crystal-clear visibility of over 30 metres, divers can encounter a fascinating shipwreck, vibrant coral formations, and marine life including nurse sharks, white tips, black tips, lemon sharks, leopard sharks, and rays. The resort’s dive centre provides all necessary equipment and expert guidance to ensure both an unforgettable and environmentally conscious underwater adventure.
This April 13th, Machchafushi Island Resort & Spa Maldives, The Centara Collection, offers guests an immersive blend of Thai culture and Maldivian charm. With rich cultural moments, thrilling island activities, and unforgettable culinary delights, Songkran at the resort promises a celebration to remember.
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