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Thailand suffers biggest economic slump since 1998, government announces more stimulus

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BANGKOK (Reuters) – Thailand’s economy suffered its biggest annual contraction since the Asian financial crisis in the second quarter due to the fallout of the coronavirus, prompting the government to slash its GDP forecast for the year and announce more stimulus.

Data from the state planning agency showed a 100% fall in foreign tourism dealt the biggest blow to Southeast Asia’s second-largest economy, while the coronavirus and measures to curb it also hit consumption, private investment and exports.

New Deputy Prime Minister Supattanapong Punmeechaow told a media conference the government would announce more stimulus this month, “to support the economy and all groups of affected people,” adding these would be discussed at a Aug 19 meeting.

The data, which also showed a record contraction quarter-on-quarter, represents another headache for the government, also facing its biggest anti-government protests since the 2014 coup.

“Today’s economic release underscores the collapse of aggregate demand, both externally and internally,” said Kobsidthi Silpachai, head of capital markets research of Kasikornbank.

“Recovery will be lengthy as the shock to the demand and supply side has been the most severe in living memory.”

Thailand’s economy, which is heavily reliant on tourism and exports, shrank 12.2% in the second quarter from a year earlier after a revised 2.0% fall in the March quarter. It fell a record 9.7% on the quarter, on a seasonally adjusted basis.

Economists in a Reuters poll had forecast the economy would shrink 13.3% year-on-year and fall 11.4% quarter-on-quarter.

The National Economic and Social Development Council (NESDC) cut its gross domestic product forecast for the year, expecting the economy to fall 7.3%-7.8% in 2020, having previously forecast a 5%-6% slump. The economy saw a record annual contraction of 7.6% in 1998.

While Thailand has lifted most curbs after seeing no local transmission of the coronavirus for over 80 days, its economy continues to suffer from tepid global demand and an ongoing ban on foreign visitor numbers.

On Monday, the NESDC said it expected only 6.7 million foreign tourists to come to Thailand this year after last year’s record 39.8 million and said there were no foreign tourists in the second quarter.

Meanwhile, NESDC expected a 10% fall in exports in 2020, having previously forecast an 8% decline.

“A clear economic recovery will take place once there is a vaccine, which we expect in the middle of next year,” NESDC head Thosaporn Sirisumphand told a separate press conference.

The government has already supported the economy with a 1.9 trillion baht ($61 billion) fiscal stimulus package, while the central bank has slashed interest rates by 75 basis points this year to a record low of 0.50%.

The main stock index .SETI dropped 0.5% in early afternoon while the baht THB=TH was little changed.

Reporting and photo: Reuters

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Manhattan Grand Hotel inaugurated in Hulhumalé with 162 rooms and major event facilities

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Manhattan Grand Hotel, a 162-room five-star property in Hulhumalé, was officially inaugurated on Saturday, 7 November 2026, marking the completion of a long-delayed hospitality development originally initiated by State Trading Organisation (STO) more than two decades ago.

The hotel was inaugurated by Minister of Finance and Public Enterprises Hassan Zareer during a ceremony held in Hulhumalé Phase 1. The opening marks a new chapter for the former STO City Hotel project, which remained unfinished for years despite substantial investment and repeated efforts to complete or sell the property.

Located approximately 10 minutes from Velana International Airport, Manhattan Grand Hotel has been developed to accommodate business travellers, transit passengers, leisure visitors and long-stay guests, while providing facilities for meetings, conferences, exhibitions and social events.

The property features 162 rooms and suites across eight accommodation categories, including city-view and sea-view rooms, deluxe accommodation and junior suites. Its facilities include four food and beverage outlets, an outdoor swimming pool, a spa and wellness centre, and a fitness centre.

A central feature of the hotel is its meetings, incentives, conferences and exhibitions (MICE) infrastructure. The property offers three major event halls, measuring approximately 700, 400 and 390 square metres, alongside dedicated meeting rooms and conference facilities. The venues have been developed to accommodate corporate conferences, exhibitions, annual general meetings, weddings, banquets and other large-scale gatherings.

The hotel’s architectural concept draws inspiration from Hukuru Miskiy, the historic Friday Mosque in Malé, incorporating elements of traditional Maldivian craftsmanship into its contemporary design. Marketed under the concept ‘Live the Heritage’, the property aims to combine local cultural influences with modern urban hospitality.

Manhattan Grand Hotel is operated by World of Business Pvt Ltd, with foreign investment from UAE-based Deep Seafood Company. The redevelopment was formalised through an agreement with Housing Development Corporation (HDC) in August 2025, under an arrangement involving 50 per cent foreign investment.

The property’s development history dates back to 2006, when STO approved plans to establish a city hotel in Hulhumalé as part of efforts to generate foreign currency revenue. Construction of the originally proposed 250-room five-star hotel began in 2011, following plans involving the US-based Carlson Hotel Group.

However, the development encountered repeated delays, leaving the building unfinished for more than a decade. STO subsequently explored several options to dispose of or complete the property before arrangements were made with HDC to facilitate its redevelopment.

The revised development also incorporates approximately three and a half floors designated for government-related facilities, including a media village, youth centre, heritage college and medical college.

Ahead of its formal inauguration, Manhattan Grand Hotel had already begun hosting hospitality industry events. The property hosted Food & Hospitality Asia Maldives (FHAM) 2026 from 7 to 9 September, bringing together hospitality suppliers, industry professionals and international exhibitors.

The hotel’s official opening adds a substantial accommodation and events facility to the Greater Malé region, supporting the growing demand for city-based hospitality services, corporate gatherings and accommodation close to the country’s main international airport.

The completion of the former STO City Hotel project also brings an end to one of Hulhumalé’s longest-running unfinished hospitality developments, converting the property into a functioning hotel and events destination.

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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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