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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
Grand Park Kodhipparu, Maldives has received its seventh consecutive Green Globe Certification, attaining Gold Member status for the third time and continuing its sustainability programme across island operations.
The resort’s sustainability model is guided by the philosophy of “From Reef to Roof”, linking marine conservation with operational management to support both environmental protection and long-term guest experience.
A central part of this approach is the resort’s house reef, which supports corals, turtles and other marine life. Conservation work led by the resort’s Resident Marine Biologist includes coral restoration, reef clean-ups and guided snorkelling experiences aimed at helping guests engage more closely with the marine environment.
Sustainability measures are also integrated across the resort’s wider operations. These include renewable energy initiatives such as solar power, which help reduce dependence on diesel-generated electricity. The resort also operates an on-site desalination system that converts seawater into drinking water, alongside its own water bottling plant.
According to the resort, this has enabled the complete removal of single-use plastic water bottles since 2020, marking a step in its waste reduction efforts.
Waste management is also structured around reducing, reusing and recycling materials where possible, with composting systems in place to reduce food waste and support day-to-day operations.
Like other island resorts in the Maldives, Grand Park Kodhipparu operates independently of mainland infrastructure, producing its own energy and water while managing waste on site. The resort says this model supports both lower environmental impact and greater operational resilience.
While Green Globe Certification provides international recognition of sustainability performance, the resort describes the certification as part of an ongoing process rather than a fixed milestone. Sustainability, it says, is embedded in operations, guest experiences and long-term planning.
Raffaele Solferino, General Manager of Grand Park Kodhipparu, Maldives, said the certification reflected the resort’s long-term direction. “From the very beginning, our vision was to create a resort that works in harmony with its environment. Achieving Green Globe Gold status for the seventh consecutive year reflects the consistency of that approach,” he said.
“‘From Reef to Roof’ connects everything we do — from protecting our marine life to how we generate energy and manage resources. It is a responsibility we take seriously, for both our environment and our guests.”
Quoting environmentalist Robert Swan, he added: “The greatest threat to our planet is the belief that someone else will save it. That idea resonates strongly with us — we believe it is our responsibility to act, here on our island, every day.”
The resort is also promoting a “Pay 4, Stay 6” package, aimed at encouraging longer stays and allowing guests more time to experience the property’s reef, wellness and nature-based activities.
Located around 20 minutes by speedboat from Velana International Airport, Grand Park Kodhipparu continues to position itself as a luxury resort with a focus on environmental responsibility and island-based guest experiences.
This World Earth Day, ELE|NA is placing sustainability at the centre of its wellness approach through a programme led by Sustainability Ambassadors across its spa network. Through a set of circular practices and guest-facing initiatives, the brand is linking environmental responsibility with the spa experience.
At the centre of the programme are ELE|NA’s Sustainability Ambassadors, team members based in each resort spa who promote environmentally conscious practices. These ambassadors support both staff and guests in adopting sustainable actions, from daily operations to workshops designed to encourage participation and awareness.
Guests are invited to join hands-on sustainability workshops that combine learning with practical activities. These include the Juice Bike, sessions on making natural haircare products, the preparation of coconut and coffee scrubs and oils, and the making of coconut candy. Guests can also take part in a sand bundle workshop, where used spa linen is repurposed into handmade sand bundles later used in spa treatments.
ELE|NA’s sustainability model also extends to resource use within spa and hospitality operations. Apples previously used in infused water are turned into apple chips, while orange peel waste from the kitchen is made into sweets served to guests after treatments. Used herbal tea is repurposed as fertiliser for spa gardens, supporting a circular approach to materials and waste.
The brand is also aligning its Earth Day programming with the 2026 global theme, “Our Power, Our Planet”, by focusing on nature-based healing practices. ELE|NA says this includes reducing the use of synthetic tools and instead incorporating natural materials such as bamboo and coconut shells into treatments. The approach is intended to reflect a model of wellness built around renewal and lower-impact resource use.
This philosophy is also reflected in wellness experiences including Ocean Flow, Reiki, Sunrise Yoga and Floating Sound Bath sessions, which are designed to connect guests more closely with the natural environment. Through these programmes, ELE|NA is positioning wellbeing and environmental awareness as part of the same experience.
ELE|NA has also received Gold Standard accreditation from Sustainable Wellness, a non-profit organisation established in 2020 to provide independent sustainability guidance and benchmarking for the wellness sector. The accreditation marks a step in the brand’s sustainability programme and reflects its stated focus on responsible wellness practices.
Beyond its own spas, ELE|NA is presenting sustainable wellness as an operational model that can be applied across resort and spa settings. The brand says the framework is designed to support guest engagement, brand positioning and service delivery, while also being scalable for hospitality operators seeking to integrate sustainability standards, staff training and wellness programming into their own operations.
The Nautilus Maldives will host Ocean Discovery Week from 2 to 8 August 2026, offering guests a closer exploration of the marine environment in Baa Atoll’s UNESCO Biosphere Reserve. Set around the rhythms of the sea, the programme is designed to bring together ocean discovery, photography, storytelling and family participation.
This year’s edition will feature underwater photographer Tobias Friedrich, who will be joined by his wife Isidora and their two sons, Kian and Dorian. Together, they bring a family-based perspective to the programme, shaped by diving, marine advocacy and shared experience.
Tobias Friedrich is known for his underwater photography and his role as a jury member for the Underwater Photographer of the Year. His work has documented marine environments ranging from tropical reefs to Arctic waters. Isidora, a PADI AmbassaDiver, contributes through storytelling linked to ocean exploration, diving safety and conservation. Kian and Dorian, both certified junior divers, add a younger perspective to the programme through their own connection with the sea.
Throughout the week, guests will be able to take part in a range of activities including manta ray encounters in Hanifaru Bay, night dives and guided snorkelling on the house reef. The programme also includes photography sessions led by Tobias Friedrich, covering underwater composition, storytelling and image-making. These sessions will range from introductory poolside workshops to more advanced guidance.
Alongside this, Isidora will lead storytelling and engagement sessions, while also guiding children’s activities. Evening events will include outdoor cinema screenings focused on underwater phenomena, as well as talks aimed at giving guests a wider understanding of the marine world.
At Naiboli, an Ocean Gallery will display Tobias Friedrich’s work through books, calendars and selected pieces, some of which will be available for purchase. A portion of proceeds will go towards marine conservation initiatives.
For younger guests, Ocean Discovery Week will also be reflected in the Young Wonderers programme. Activities will include coral planting sessions with the resort’s resident marine biologist, along with ocean-themed art, storytelling and reef exploration.
The Nautilus Maldives is presenting Ocean Discovery Week as a programme shaped less by fixed schedules than by shared experiences in and around the sea. Through diving, photography, storytelling and conservation-based activities, the week is intended to deepen guests’ understanding of the marine environment while creating opportunities for connection across age groups.
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