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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
W Maldives has unveiled Escape Remix, a new stay experience designed for guests seeking to experience different sides of island life, from the tranquillity of overwater living to the laidback glamour of a beachfront escape.
Available from June 2026 onwards as a permanent offering, Escape Remix allows guests to move between the Superior Overwater One-Bedroom Villa and the Escape Beach One-Bedroom Villa within one curated island getaway.
Created for travellers seeking variety without compromise, the experience includes a four-night stay split between two nights in the overwater villa and two nights in the beach villa. It also includes daily buffet breakfast for two adults and a selection of signature island benefits, giving guests distinct perspectives of the destination while maintaining comfort and luxury throughout their stay.
At the centre of the experience is the opportunity to discover the Maldives from two different settings. Suspended above clear lagoon waters, the Superior Overwater One-Bedroom Villa offers ocean views, direct access to the sea, a private pool, and a W Maldives signature overwater hammock designed for leisurely afternoons above the Indian Ocean. Guests can also access the resort’s award-winning house reef directly from the villa deck, where marine life can be explored just moments from their accommodation.
On shore, the Escape Beach One-Bedroom Villa offers a more barefoot island rhythm. Surrounded by tropical greenery and direct beach access, the villa features a private pool and an elevated upper deck with a swinging daybed for golden-hour lounging. Guests staying beachside can also access the same award-winning house reef directly from the shoreline, creating a connection between island living and underwater discovery.
“Luxury travel today is about having the freedom to experience a destination in different ways, all within one journey,” said Amila Handunwala, General Manager of W Maldives. “Escape Remix was created for guests who want to fully immerse themselves in the Maldives while experiencing contrasting yet complementary experiences, from the serenity of overwater living to the lively energy of a beachfront escape, all infused with the bold spirit of W Maldives.”
Beyond the villas, Escape Remix includes a series of additions designed to enhance the stay. Guests receive complimentary soda refreshments from the in-room MixBar, complimentary use of snorkelling gear, access to non-motorised water sports, and a one-time 30-minute photoshoot with the resort’s in-house photographer, including one printed photograph.
Following its recent transformation, W Maldives continues to position itself within the contemporary luxury segment through design, immersive experiences, and a social island atmosphere. Guests can dine across the resort’s five restaurants and bars, unwind with treatments at the overwater AWAY Spa, or take part in a castaway experience at Gaathafushi, the resort’s private island.
As a five-star resort in the Maldives known for its distinctive personality and approach to luxury, W Maldives continues to expand its guest experiences beyond the conventional island stay.
Blending overwater tranquillity with beachfront freedom, Escape Remix introduces a new way to experience W Maldives, offering guests a more dynamic and personalised stay. Travellers looking to extend their visit can also book the Original Wavemaker package, which includes shared seaplane transfers and a half-board meal plan for two adults.
Divers from Holiday Inn Resort Kandooma Maldives recorded a whale shark sighting last month during a dive at Kandooma Thila in South Malé Atoll.
The encounter took place on 13 April during a guided dive led by Dive Centre Manager Ibrahim Shaan. The whale shark, estimated to be approximately six metres in length, is believed to be a juvenile aged between eight and 15 years. The animal remained in the vicinity of the divers for more than 30 minutes before leaving the area.
Shaan said the whale shark entered the dive site calmly, circled alongside the group and remained present for an extended period. He described the encounter as one of the most notable experiences observed at the site.
Whale shark sightings are considered uncommon in South Malé Atoll, where the species is not typically resident. They are more frequently associated with the South Ari Atoll Marine Protected Area, one of the primary aggregation areas for whale sharks in the country.
The Maldives is regarded as a key destination for whale shark encounters due to environmental conditions including warm waters, nutrient-rich currents and seasonal plankton blooms. Whale sharks are filter feeders and migrate across large distances, often following food sources.
The sighting at Kandooma Thila is understood to be linked to broader migratory movement through the atoll system, with the animal potentially following plankton concentrations or feeding opportunities created by ocean currents.
Kandooma Thila is known for its coral-covered structure, current-driven conditions and marine biodiversity, factors which may attract larger pelagic species on a temporary basis.
Following the sighting, the resort has submitted photographs and video footage to the Maldives Whale Shark Research Programme (MWSRP) for potential identification through its national database. Whale sharks can be identified through unique spot patterns located behind the gills and along their flanks.
The MWSRP’s Big Fish Network database has recorded more than 800 individual whale sharks in the Maldives, contributing to long-term research on migration patterns, population dynamics and species health.
Sharon Garrett, Director of Marketing and Sustainability at the resort, said the data collected would support ongoing research and conservation efforts. She noted that such information contributes to understanding seasonal movement patterns, assessing environmental conditions and informing marine protection measures.
The resort has also reiterated the importance of responsible interaction with marine wildlife. Recommended practices include maintaining distance, avoiding physical contact, refraining from flash photography and ensuring appropriate buoyancy control.
Boat strike incidents remain a recognised threat to whale sharks in Maldivian waters, highlighting the need for careful vessel operation in areas where marine life is present.
Holiday Inn Resort Kandooma Maldives is located approximately 45 minutes by speedboat from Velana International Airport and provides access to multiple dive sites in South Malé Atoll. The resort also operates a Dive Free programme, offering up to two complimentary dives per day for certified divers staying a minimum of three nights.
Sirru Fen Fushi – Private Lagoon Resort has announced its “Eid in Harmony” programme for Eid al-Adha, scheduled from 27 to 29 May 2026, offering guests a series of curated experiences centred on dining, cultural elements and leisure activities.
The programme is designed to provide a structured yet relaxed approach to the celebration, with a focus on shared experiences and engagement with the island environment. According to the resort, the initiative aims to bring together cultural traditions and hospitality offerings within a resort setting.
A central feature of the programme will be the Eid al-Adha Feast, a dining experience presenting a selection of dishes prepared for the occasion. The event will be set in a themed environment reflecting elements associated with Eid.
The resort will also introduce an “Eid Gift with Purpose” initiative, positioned as a gesture aligned with the values of giving and reflection associated with the occasion.
In addition, guests will have the option to participate in a Guest Archery Competition, offering a recreational activity designed to complement the island setting and provide an alternative form of engagement during the celebration period.
Alongside the programme, the resort has launched an “Eid Island Escape” offer, which includes a range of inclusions for guests staying during the period. These include a 30-minute jet lag recovery massage, daily breakfast at Raha Market, dinner on a dine-around basis across selected restaurants, and a one-time floating breakfast experience.
In a statement, the resort’s management said the programme is intended to reflect the values of togetherness and reflection associated with Eid al-Adha, while offering guests opportunities to spend time with family and participate in shared experiences.
Through the three-day programme, Sirru Fen Fushi – Private Lagoon Resort is presenting Eid al-Adha as a combination of dining, leisure and cultural activities within a resort environment.
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