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Spain dives into deep recession, tourism woes bode ill for rebound

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MADRID (Reuters) – The coronavirus crisis has pulverised Spain’s economy, triggering its worst recession since the civil war, with collapsed tourism numbers boding ill for hopes of a swift rebound.

Hit by one of Europe’s worst outbreaks and strictest lockdowns, the economy came to a virtual halt in March and remained paralysed until the end of June.

It shrank 18.5% in the second quarter, a drop so harsh it wiped out all the recovery achieved since the 2008 global financial crisis, figures from the National Statistics Institute showed on Friday.

“It’s a war economy,” said one Mallorca hotelier, Lluis Rullan, who has only reopened one of his two establishments and was limiting costs and staff to a minimum due to scant visitors.

The government had counted on tourists from northern Europe and further afield driving a third quarter recovery, but quarantines and travel advisories have dashed hopes as Spain battles with new localised outbreaks of the COVID-19 disease.

Rullan, who operates in Soller in northwest Mallorca, had planned for 60% occupancy for August but now expects barely 20% for what should be the high summer season.

After Britain required travellers to Spain to quarantine on return, Germany dealt another blow on Friday, putting three Spanish regions – including Catalonia, home to Barcelona – on its list of high-risk areas.

“Not only has the Spanish economy been one of the worst hit in the euro zone by the pandemic, it also looks set to make a much weaker recovery than its neighbours,” said analysts at Capital Economics.

Spain normally received about 80 million visitors annually and has depended on tourism for about 12% of economic output.

‘Everything is empty’

The government has forecast contraction of 9.2% in 2020 as a whole, surpassing the fall during Spain’s 2008-2013 financial crisis, but expects 6.8% growth in 2021.

“I fear something worse because in the previous crisis we had health and now we don’t,” said pensioner Amelia Martin, walking in Madrid with a mask on.

Spain insists it is not experiencing a second wave of the coronavirus and recent increases are still far from the peak.

But Alex Lazarowicz, a British artisan brewer in Barcelona, whose business has suffered from the local resurgence in cases, said things were not improving: “Everything is empty. People no longer go inside the bar.”

With the economy hibernating and most shops closed until reopening began in May, private spending and investment plummeted in the second quarter, inflicting a much greater blow on Spain’s economy than European counterparts including Germany, France and Italy, the data showed.

The second-quarter contraction came after a 5.2% drop in the first three months, at that stage the worst quarter in modern records. Historians say only the 1936-39 civil war hit harder.

The third quarter will now be weaker than expected, said Raymond Torres, chief economist of thinktank Funcas, forecasting that Spain might manage to rake in from tourist income for the whole year what it usually gets in the third quarter alone.

Some sectors, though, recorded positive data in the second quarter, such as agriculture, driven by strong demand for food. A stimulus package and health measures also helped boost public spending.

“Let’s be positive, fight and think that if everybody pushes, we will get Spain out of this,” said retail shops owner Inigo Crespo, who had to close one shop after the lockdown started and is unsure if can keep his other businesses running.

Reporting and photo: Reuters

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BBM’s ‘Studio of Culinary Excellence’ opens at MNU to bridge classroom, industry

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The best way to secure the future is to create it.

Creating that future through specific, purposeful initiatives is what drives people of purpose—and, in turn, moves us all closer to the future we desire.

The Maldives is a compelling case study of a tourism-driven economy. Look around and ask why an event is being staged, what someone is working on, or where a new initiative is leading, and the answer will often point to the hospitality sector. Securing the future, therefore, is inextricably linked to strengthening and advancing that sector.

Here, “strengthening” means making the sector’s contribution more sustainable; ensuring that a greater share of its growth benefits the community; continuing to offer a compelling value proposition to the discerning global traveller; and ensuring that visitor experiences continue to generate an unparalleled reputation and valuable referrals.

To achieve these outcomes in the future, it is essential that current and future generations of the local community engage actively with the industry. Making hospitality appealing and aspirational, enhancing the quality of delivery and service, and building a pipeline of skills and talent into the sector are areas in which initiatives, inspiration, infrastructure and investment should be concentrated.

It is firmly in this context that Mr Ismail Hilmy, Chairman and Managing Director of BBM, initiated the establishment of a modern, exceptionally well-equipped and thoughtfully designed model kitchen, aptly named the Studio of Culinary Excellence. By donating the Studio to MNU, under whose auspices it will serve the Maldivian culinary community, Mr Hilmy is responding directly to the need for deeper community engagement. At the heart of BBM’s framework for industry-outreach initiatives— “Because tomorrows start today”—is Mr Hilmy’s ethos of fostering engagement and vibrancy in the industry.

“For our students, the gap between the classroom and a working resort kitchen has always been the hardest one to close,” said Dr Shehenaaz Adam, Vice Chancellor of the Maldives National University. “The Studio of Culinary Excellence closes that gap. Students can now train on the same equipment and to the same standards they will encounter on their first day in the industry. We are grateful to BBM for a partnership that goes well beyond a donation, and we look forward to the Studio becoming a place where the university and the industry learn from one another.”

The Studio therefore creates an opportunity to develop a pipeline of skills and talent in service of the industry.

“Embedding purpose in our work has been an ongoing endeavour at BBM. It keeps us connected to our stakeholders and builds insight, understanding and trust. Being a meaningful partner to academia as we move into the future gives us a great sense of fulfilment and guides our initiatives under the banner, ‘Because tomorrows start today,’” said AVS Subrahmanyam, Chief Operating Officer of BBM.

But what is the value of physical infrastructure without the corresponding spark of aspiration and ambition?

As Ali Afrah Hassan, Executive Representative at Chairman’s Office – BBM, aptly observed: “The Studio offers students and members of the community hands-on experience with world-class equipment, together with knowledge-sharing masterclasses. Who knows—in the not-too-distant future, a Michelin-starred Maldivian chef may fondly credit some of their inspiration to time spent at the Studio!”

Now that is the mind and heart in sync—working towards a future that is aspirational, ambitious and entirely attainable.

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BBM Hulhumalé Phase 2 opening promotion winner receives Honda Airblade

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Bestbuy Maldives (BBM) has presented a brand-new Honda Airblade motorbike to the winner of a lucky draw held to mark the opening of its newest wholesale outlet in Hulhumalé Phase 2.

The outlet, located at Lot 20286 on Nirolhu Magu, opened on 16 February 2026 as part of BBM’s expansion of its wholesale operations.

To celebrate the opening and thank customers for their continued support, BBM introduced a special lucky draw exclusively for customers who made purchases from the new outlet on its opening day.

Customers who purchased products during the opening were eligible to enter the draw, with a Honda Airblade motorbike offered as the grand prize.

The lucky draw was conducted on 13 August 2026, with Ibrahim Shifaz of Vagthun Vaguthah outlet selected as the winner.

Shifaz was recently presented with the ceremonial key to the Honda Airblade by AVS Subrahmanyam, Chief Operating Officer of Bestbuy Maldives.

The promotion formed part of BBM’s activities surrounding the opening of its Hulhumalé Phase 2 outlet, which provides customers with access to the company’s range of wholesale products from the growing residential and commercial area.

Bestbuy Maldives is a supplier and distributor serving businesses across the Maldives, including customers in the hospitality, food service and retail sectors.

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Football legends receive FIFA World Cup 2026 match balls signed by President Muizzu

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Male’ Aerated Water Company (MAWC), the authorised bottler of The Coca-Cola Company in the Maldives, on Thursday hosted the Official FIFA World Cup 2026™ Match Ball Handover Ceremony, presenting Football Legends of Maldives with official FIFA World Cup 2026™ match balls signed personally by Dr Mohamed Muizzu, President of Maldives.

Held in partnership with the Ministry of Youth Empowerment, Sports and Fitness, the ceremony recognised former national footballers whose achievements, service and influence have helped shape football in the Maldives and inspired generations of players and supporters.

The Coca-Cola Company has been an official partner of FIFA since 1974, making it one of the longest-standing partnerships in the global sport. For MAWC, the handover brought that global partnership to life locally by connecting the FIFA World Cup with people who have contributed to Maldivian football history.

As the sole authorised Coca-Cola bottler in the Maldives for over 35 years, MAWC has supported local sport through partnerships, campaigns and community initiatives. The ceremony continued that commitment by recognising the legacy of players who represented the Maldives and contributed to the growth of football in the country.

“Maldives’ football legends have given generations of supporters moments of pride and have played an important role in shaping the country’s sporting history. At MAWC, we believe recognising their contribution is as important as supporting the next generation. Through our partnership with Coca-Cola and FIFA, and in collaboration with the Ministry of Youth Empowerment, Sports and Fitness, we are honoured to celebrate their legacy. These match balls are a token of our appreciation for what they have given to Maldivian football,” said Milind Derasari, Chief Operating Officer, MAWC.

Adding to the excitement of the football season, MAWC ran a nationwide FIFA World Cup 2026™ consumer promotion from 21 March to 24 May 2026. Eight winners received an all-expenses-paid experience for two to attend a FIFA World Cup 2026™ match. Hundreds more won Coca-Cola branded merchandise and other prizes during the campaign, bringing the excitement of the world’s largest football tournament to consumers across the Maldives.

MAWC remains committed to building partnerships that support the development of sports across the Maldives, working with the Government of Maldives and other partners.

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