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Maldives saw fifth biggest GDP drop over virus-related tourism loss, new study says

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Maldives has seen the fifth highest percentage drop in GDP globally due to tourism loss from the coronavirus pandemic, according to a new study.

Travel and tourism has been one of the main industries to be gravely affected by Covid-19, leaving many countries with no choice but to close its borders to tourists for months due to the global pandemic outbreak. As a result of these travel bans, a number of airlines and tour operators have had to cancel long-awaited holidays, leaving world tourism at an all time low.

Visa Waiver processing firm Official-esta.com looked into the biggest revenue losses and highest percentage of GDP lost per country to reveal which countries have seen the greatest financial impact as a result of the loss of tourism caused by the pandemic.

In 2019, global travel and tourism contributed $8.9 trillion to the world’s GDP, yet due to the current pandemic the financial impact of Covid-19 on world tourism has resulted in a total revenue loss of $195 billion worldwide in the first four months of 2020.

According to the study, the Maldives has dropped 6.9 per cent in GDP due to tourism loss from Covid-19, ranking it fifth as the country with the biggest percentage loss in GDP caused by the global pandemic.

Caribbean worst affected in GDP terms

The Caribbean makes up half of the top 10 countries with the highest percentage of GDP loss.

Last year, more than 31 million people visited the Caribbean, and more than half of them were tourists from the US. But with Covid-19 causing travel bans all over the world, the number of tourists that once accounted for 50-90 per cent of the GDP for most of the Caribbean countries has significantly decreased.

Countries within the Caribbean make up 50 per cent of those which have suffered the highest percentage loss in GDP, with Turks and Caicos Islands, Aruba, Antigua and Barbuda, St. Lucia and Grenada all ranking in the list of the top 10 worst affected.

Countries which have lost the highest percentage of GDP due to loss of tourism:

  1. Turks and Caicos Islands: 9.2 per cent
  2. Aruba: nine per cent
  3. Macao: 8.8 per cent
  4. Antigua and Barbuda: 7.2 per cent
  5. Maldives: 6.9 per cent
  6. St. Lucia: 6.2 per cent
  7. Northern Mariana Islands: 5.9 per cent
  8. Grenada: 5.5 per cent
  9. Palau: 5.2 per cent
  10. Seychelles: 4.6 per cent

Major financial impact on Europe

Countries within Europe make up 50 per cent of those which have suffered the biggest losses in tourism revenue, with Spain, France, Germany, Italy and the UK all ranking in the list of the top 10 worst affected.

With a reported drop of 98 per cent in international tourist arrivals in June, Spain is the European country with the largest revenue loss of $9.7 billion.

Just as tourists began returning to the popular holiday destination, a rise in Covid-19 cases meant the UK imposed a quarantine warning against anyone arriving back from Spain as of the end of July. This new rule indicates that Spain’s loss in revenue will continue increasing as tourism slows once again.

France is the world’s most visited country with over 89 million tourists each year, but the impact of Covid-19 has resulted in a total revenue loss of $8.8 billion. This significant loss makes it the third country in the world with the most revenue loss caused by the global pandemic and the second in Europe.

Countries with the biggest tourism revenue loss due to Covid-19:

  1. United States: $30.7 billion
  2. Spain: $9.7 billion
  3. France: $8.8 billion
  4. Thailand: $7.8 billion
  5. Germany: $7.2 billion
  6. Italy: $6.2 billion
  7. United Kingdom: $5.8 billion
  8. Australia: $5.7 billion
  9. Japan: $5.4 billion
  10. Hong Kong: $5.02 billion

“The last few months have undoubtedly been extremely difficult for the travel and tourism industry. In the midst of the global pandemic, many popular holiday destinations have had to close their borders to tourists and the financial impact this has brought on world tourism has not only impacted all countries around the world but also airlines and travel operators,” Jayne Forrester, Director of International Development at Official ESTA, said.

“As travel bans have started to ease off from July, we only hope that we see no more significant losses to one of the largest growing sectors in the world.”

The Maldives reopened its borders on July 15.

With the border reopening, 30-day free on-arrival visa is issued to all tourists who has a confirmed booking for a stay at any registered tourist facility in the country. The entire holiday has to be booked at a single facility except for transit arrangements.

There is no mandatory quarantine or testing on arrival. Tourists have to complete a health declaration form only.

But visitors with symptoms of the Covid-19 respiratory disease caused by the novel coronavirus or those travelling with someone who has similar symptoms are tested at their own expense.

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.

Meanwhile, the government’s best case scenario now puts total tourist arrivals for 2020 just above 800,000. 

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 6,660.

Twenty-six deaths have been reported, while 4,113 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.

The restrictions are now being eased in phases, with the third phase measures now active.

Photo: Veligandu Island Resort & Spa/ Crown & Champa Resorts

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Atmosphere Core expands in South Asia with Atmosphere Living ultra-luxury residences

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Atmosphere Core, a globally renowned name in hospitality, has announced the launch of Atmosphere Living as part of its continued expansion in South Asia. Headquartered in India, this new company will offer branded ultra-luxury residences with customised end-to-end amenities and indulgences, including coffee lounges, wine cellars, private transport, and bespoke concierge services.

The global branded residences market has experienced a remarkable 150 percent growth over the past decade, and projections indicate a surge in demand. With the real estate veteran Sandeep Ahuja at the helm as Managing Director, Atmosphere Living is strategically positioned to capitaliSe on this demand.

Atmosphere Living will focus on a conscious design philosophy. All properties will be built in harmony with the environment and will incorporate features such as smart recycling, efficient waste and water management, and green energy solutions.

Sharing his insights on the launch, Salil Panigrahi, Managing Director, Atmosphere Core, said, “Atmosphere Living will bring a distinctive offering to India, and is a brand to watch out for. It will combine Ahuja’s decades of experience, knowledge, and industry network in real estate with Atmosphere’s hospitality expertise, introducing unparalleled serviced residences in India.”

Positioned in major metropolitan areas, established second-home destinations, and undiscovered scenic locales nationwide, these projects will also present lucrative investment opportunities. Elite homeowners will have the option to lease their residences back to Atmosphere Living, allowing them to be rented out for income generation.

Sandeep Ahuja, Managing Director, Atmosphere Living, said, “There is currently a gap in the Indian realty landscape for ultra-indulgent serviced homes catering to affluent consumers. We aim to bridge this gap by curating serviced homes that offer indulgences such as entering homes using smart key cards, 24/7 butler services, fine dining, and co-working spaces, among others. Our ultimate desire is to enable our customers to experience a life of true luxury and exclusivity.”

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A night of celestial wonders, luxury, and cosmic inspiration at Anantara Kihavah SKY Observatory by British astronaut Tim Peake

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Anantara Kihavah Maldives Villas celebrated a historic  milestone with the exclusive visit of the renowned British astronaut, Tim Peake. On the evening of November 2, Astronaut Peake hosted an exclusive space talk at SKY Observatory, the finest  overwater observatory in the Indian Ocean, housing the most powerful telescope in the Maldives. 

Perched gracefully over the pristine Maldivian waters, SKY Observatory provided an idyllic setting for  this extraordinary event, complemented by a stunning sunset. The exclusive gathering attracted a full  house of eager guests to a delightful evening that seamlessly blended science, luxury, and natural  beauty. 

The evening commenced with a lovely cocktail reception, where guests were serenaded by the soulful  tunes of a live saxophone band. Attendees savoured exquisite cocktails and canapés as they eagerly  awaited Tim Peake’s presentation. 

Tim Peake’s talk unveiled his personal journey, where he shared his path to becoming an astronaut  and narrated the rigorous training that astronauts undergo. He provided insights into life in space, the  daily challenges faced by astronauts, and the awe-inspiring experiences he encountered during his 

historic mission. He also offered a glimpse into his exciting future projects, leaving the audience both  inspired and spellbound. 

Following Tim’s presentation, an interactive Q&A session allowed guests to engage directly with the  British astronaut. The audience posed thoughtful questions, deepening their understanding of  astronauts’ unique experiences and the intricacies of space exploration. 

The event was further enriched by the presence of the resort’s three SKY gurus, Hammadh Rasheed,  Zunnoon Ahmed, and Ali Arushal, who conducted a stargazing session for the guests afterward. 

The success of the event was evident in the overwhelmingly positive feedback from attendees, who  left with a deeper appreciation for space exploration and a memorable evening to cherish. 

The evening marked a significant moment in Anantara Kihavah’s history, showcasing the resort’s  commitment to offering unique and memorable experiences for its guests. The presence of Tim  Peake, a celebrated astronaut and highly accomplished author, added an extraordinary dimension to  the resort’s already spectacular offerings. 

Tim Peake is a renowned British astronaut who made history as the first official British astronaut to  visit the International Space Station (ISS) and conduct a spacewalk during his six-month mission. He  also achieved the remarkable feat of running the London Marathon from space. Beyond his  extraordinary space endeavours, Tim is also a bestselling author with his most recent book Space: A thrilling human history published earlier this month. 

An astronomer’s paradise, Baa Atoll in the Maldives, is one of the best places on earth to enjoy  stargazing due to its proximity to the equator. Anantara Kihavah Maldives Villas promises a voyage of  discovery on a private Indian Ocean Island, with Sky—an overwater observatory and luxury cocktail  bar—providing guests a chance to sip champagne under the stars and explore the Universe.

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Visit Maldives website adds atolls segment to showcase diverse regions

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Maldives Marketing and Public Relations Corporation’s (MMPRC/ Visit Maldives) has added a new segment to the official Visit Maldives Website specified for atolls showcasing the diversity of the Maldives.

The segment, now live at atolls.visitmaldives.com provides in depth information regarding the different regions of the Maldives, divided by atolls, to refine the traveller’s experience, commencing with an in-depth exploration of Addu Atoll and Fuvahmulah Atoll.

With 26 atolls, the Maldives offers a wide array of unique accommodations and awe-inspiring travel experiences, and this informative section of our website will serve as a gateway to discover the hidden treasures unique to each area. This falls under MMPRC’s initiatives to encourage tourism growth in all regions of the Maldives, broadening exposure to the diverse tourism products available in the Maldives.

The goal is to elevate Visit Maldives’ digital marketing landscape by showcasing the Maldives as more than just a honeymoon destination with various accommodation options. This initiative is driven by a desire to increase awareness about the distinctive offerings within each of the Maldives’ atolls. It aims to positively shape their perception of the Sunny Side of Life brand by curating engaging content that highlights the unique features of the atolls and diverse experiences available in the islands.

Additionally, the initiative will target the affordable luxury market to promote the Maldives as the most appealing option for short holidays and weekend getaways under a unified Maldives brand umbrella.

MMPRC aims to continue exploring other atolls in the Maldives as well, encouraging growth and tourism development in all regions of the Maldives, building on the foundation we have created to promote the destination beyond the traditional paradigms of sun, sand, and sea.

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