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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
Six Senses Laamu has introduced 17 new overwater villas across four accommodation categories as part of a multi-year transformation programme aimed at upgrading guest accommodation and shared facilities at the resort.
The new villas feature expanded living spaces, redesigned interiors and additional amenities, while maintaining the resort’s focus on marine conservation and its surrounding natural environment.
The interiors incorporate a coastal colour palette featuring white and neutral tones alongside shades of blue inspired by the surrounding lagoon. Natural materials are used throughout the villas, including driftwood coffee tables, handcrafted hanging lamps and decorative features.
A notable design element is a textured surface pattern inspired by the structure of a turtle shell. The design references the hawksbill and green turtles found in the waters surrounding the resort, reflecting Six Senses Laamu’s marine conservation initiatives.
Each villa features panoramic windows overlooking the ocean, alongside indoor seating and dining spaces.
Outdoor amenities include an 18-square-metre private swimming pool, an overwater hammock, dining and lounge areas, and an upper deck offering views across the lagoon. The villas also feature bathtubs positioned to provide ocean views.
The four new accommodation categories are Ocean Water Villa Suite with Pool, Laamu Water Villa Suite with Pool, Horizon Water Villa Suite with Pool and Family Water Villa with Pool.
All four categories offer expanded interiors, dedicated seating and dining areas, additional wardrobe space and outdoor decks.
The Horizon Water Villa Suite with Pool is designed to provide uninterrupted views of the ocean horizon.
The Family Water Villa with Pool is a new accommodation concept for Six Senses Laamu, featuring a separate children’s bedroom with an adjoining bathroom.
The family villas also include private pools and outdoor decks, providing shared recreational spaces alongside separate accommodation areas for children.
Families staying in the new villas can participate in the resort’s Junior Marine Biologist programme, which introduces younger guests to marine life and conservation activities.
The introduction of the new accommodation categories marks the first phase of a wider redevelopment programme at Six Senses Laamu.
The multi-year project will include further improvements to guest accommodation and shared facilities, while retaining the resort’s existing marine conservation programmes, house reef and environmental initiatives.
The 17 new villas will be available for stays from 6 December 2026, with rates starting from USD 2,185 for an Ocean Water Villa Suite with Pool.
.Here Baa Atoll has received three awards at the World Luxury Hotel Awards 2026, including the title of World’s Best Luxury New Resort.
The private island retreat was also recognised as Best Luxury Private Island Resort in the Indian Ocean and Best Luxury Boutique Resort in the Maldives.
Located within the UNESCO Biosphere Reserve of Baa Atoll, .Here Baa Atoll comprises nine residences across two secluded islands, Somewhere and Nowhere. The resort focuses on providing private accommodation, personalised services and experiences tailored to individual guest preferences.
The recognition as World’s Best Luxury New Resort marks a significant achievement for the property, which has positioned itself within the ultra-luxury hospitality segment since its opening.
At Somewhere, the resort offers three- and four-bedroom residences combining beachfront accommodation with overwater architecture. The residences feature indoor and outdoor living spaces, private infinity pools and views of the Indian Ocean.
Guests are supported by dedicated Roohu hosts, who coordinate services and experiences according to individual requirements throughout their stay.
Nowhere Private Island offers an eight-bedroom private island accommodation option designed for families and groups seeking exclusive use of the facilities.
The island features a private cinema, spa, gym, swimming pool and dedicated dining and entertainment spaces. Guests can also arrange personalised culinary experiences and other activities during their stay.
The resort’s dining offerings include SAFAR Restaurant and private dining experiences tailored to guest preferences.
Marine excursions are also available aboard the resort’s private yacht, ASMAS, allowing guests to explore the surrounding waters and marine environment of Baa Atoll.
The resort operates under its Embrace the Now philosophy, which focuses on personalised experiences and allowing guests flexibility in how they spend their time on the islands.
The three awards add to several international recognitions received by .Here Baa Atoll in 2026.
These include its inclusion in the Condé Nast Traveller Hot List, two awards at the AHEAD Asia Awards, recognition in DestinAsian’s Luxe List and a place among the top resorts in the Indian Ocean in the Condé Nast Traveller Readers’ Choice Awards.
The World Luxury Hotel Awards recognise hotels and resorts across various categories based on their luxury hospitality offerings, service standards, design and guest experiences.
The latest awards recognise .Here Baa Atoll’s accommodation, facilities and personalised hospitality services within the luxury tourism sector in the Maldives and the wider Indian Ocean region.
Milaidhoo Maldives’ overwater Serenity Spa has received the Best Hotel Spa award at the 2027 Condé Nast Johansens Awards for Excellence, recognising the resort’s personalised wellness services and spa experiences.
The awards ceremony was held at The Montcalm Mayfair in London on Monday, 2 November 2026. Milaidhoo Maldives was represented by Georgie Westley, Corporate Director of Marketing and Communications at Versa Hospitality, alongside representatives from ROVE PR UK.
Located in Baa Atoll, a UNESCO Biosphere Reserve, Serenity Spa offers a range of wellness treatments and services in an overwater setting.
The spa provides personalised wellness programmes supported by an on-island wellbeing consultant, daily yoga classes and an extensive selection of treatments designed to meet individual guest requirements.
Guests can receive treatments at the overwater spa or in the privacy of their villas. The treatment menu includes massages, beauty therapies and specialised wellness treatments incorporating advanced technologies.
Among the technologies available at Serenity Spa are the LYMA Laser, Archedaway Cupping Therapy and M2T Blade. The spa also uses products from wellness and beauty brands including Natura Bissé, Aromatherapy Associates, Obsidian for Men and Margaret Dabbs.
Milaidhoo Maldives incorporates wellness into other aspects of its guest experience, including its culinary offerings. The resort’s approach includes meals prepared using fresh ingredients from its Chef’s Garden, alongside daily yoga sessions and activities centred on relaxation and wellbeing.
Paul van Frank, General Manager of Milaidhoo Maldives, said the award recognised the spa team’s commitment to delivering personalised services.
“We are incredibly proud of this recognition. Our Serenity Spa is a special part of the Milaidhoo experience and our team, the Milaidhoo Family, takes great care to ensure every guest receives the attention and personalisation they deserve. From expert treatments to the simple pleasure of taking time for yourself, we want guests to leave feeling refreshed and reconnected,” he said.
The recognition highlights Milaidhoo Maldives’ wellness offerings, which combine spa treatments, specialist therapies, personalised services and wellness-focused dining experiences.
The resort continues to incorporate wellness into its hospitality offering through its Serenity Spa, culinary programmes and recreational activities.
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