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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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Bestbuy Maldives, Atmosphere Core elevate chef training with Michelin-star masterclass

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Bestbuy Maldives (BBM) brought together 100 chefs from leading resorts and restaurants across the country on 24 November for an exclusive culinary masterclass led by Italian One-Michelin-Star Chef Pasquale Palamaro. Held at Hulhule Island Hotel (HIH), the full-house session marked a key highlight of the ongoing “Mediterranean Soul, Maldivian Heart” culinary series presented by Atmosphere Hotels & Resorts in collaboration with BBM.

The masterclass formed the Malé City chapter of the broader programme, which features a lineup of events hosted at RAAYA by Atmosphere and VARU by Atmosphere throughout November 2025. The HIH masterclass served as a platform for professional development, skill exchange, and hands-on learning for chefs from some of the Maldives’ most distinguished culinary teams.

Chef Pasquale, celebrated for his work at Indaco Restaurant in Amalfi, guided participating chefs through a series of live demonstrations that reflected his signature philosophy—one that emphasises intuition, simplicity, and a deep respect for natural ingredients.

“Cooking, to me, is a dialogue with nature — an art of transforming simplicity into beauty. Bringing Indaco’s spirit to the Maldives is an opportunity to merge two coasts and two cultures through taste, technique, and emotion,” he shared during the programme.

Participants explored Mediterranean-inspired methods adapted to Maldivian produce, with Chef Pasquale showcasing dishes rooted in coastal heritage and contemporary craftsmanship. The session also encouraged discussion around ingredient integrity, sustainability-led cooking, and the evolving expectations of today’s luxury diners.

The fully subscribed masterclass reaffirmed BBM’s long-running commitment to cultivating professional excellence within the Maldives’ hospitality sector.

As the authorised distributor of globally renowned culinary and F&B brands, BBM has built a reputation for its Masterclass Series, which brings international expertise to local professionals through practical workshops and high-level training. This latest edition added a Michelin-starred perspective to the growing body of knowledge BBM continues to nurture across the industry.

Ali Afrah Hassan, Head – Human Resources, Administration & Corporate Affairs at BBM, highlighted the importance of consistent capacity building in the sector.

“This masterclass reflects our ongoing commitment to strengthening the skills of the Maldivian culinary community. By creating opportunities for chefs to learn directly from international experts, we help broaden professional exposure and support the industry’s growth. BBM will continue to invest in platforms that uplift local talent and contribute to raising the overall standard of hospitality in the Maldives,” he said.

The masterclass follows two immersive days at RAAYA by Atmosphere earlier in the month, where guests joined farm experiences, tasting sessions, and a hands-on workshop before a five-course dinner curated by Chef Pasquale. The series will continue with a 4-Hands Dinner at Kaagé on 27 November and a masterclass with a five-course dinner at NÜ on 28 November at VARU by Atmosphere.

Anupam Banerjee, Vice President, Food & Beverage at Atmosphere Core, emphasised how the collaboration bridges traditions and culinary ideologies.

“All our island resorts have long been recognised for their culinary offerings,” he noted. “Through Chef Pasquale’s artistry and our island-inspired ethos, we are crafting an evocative dialogue between Mediterranean and Maldivian gastronomies that not only captivates the palate but also champions environmental stewardship and celebrates the cultural richness of both regions.”

For attending chefs, the session offered more than demonstrations—it provided the rare opportunity to learn directly from a Michelin-starred figure whose approach blends innovation with a respect for locality. Many participants described the workshop as an opportunity to refine technique, discover new applications for familiar ingredients, and build valuable connections within the professional community.

With strong engagement and enthusiastic feedback from attendees, the masterclass stands as another milestone in BBM’s long-standing role in elevating culinary standards in the Maldives.

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2 decades of culinary excellence: BBM’s founding legacy with Hotel Asia continues in 2025

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Hotel Asia Exhibition and International Culinary Challenge is referred to be the hospitality industry event in the Maldives. In this year’s Culinary Challenge (19 to 22 October 2025) comprising competitions over 20 categories, most will take place at the Faculty of Hospitality and Tourism Studies, Maldives National University, and some at the Synthetic Track, Hulhumalé.

A Founding Partnership that Endures

Since the very first edition in 2001, Bestbuy Maldives (BBM) has played a central role in shaping the International Culinary Challenge into the Maldives’ most prestigious culinary platform. The event has become a cornerstone for professional development, bringing together chefs from across the Maldives to compete, learn, and showcase their craft.

BBM and their associated Principals sponsor an overwhelming majority of categories. “From the beginning, our goal has been to create opportunities for Maldivian chefs to rise to global standards. This partnership has grown with the industry itself,” said A.V.S. Subrahmanyam, Chief Operating Officer of BBM.

Nurturing Local Talent

BBM’s contribution extends beyond sponsorship. The company has built a long-term system for recognizing and developing local culinary talent.

  • BBM Chairman’s Trophy for the Best Maldivian Competitor.
  • Most Promising Young Chef Award for emerging talent.
  • Global exposure programs for Maldivian chefs through sponsored participation in international events.
  • Pro-bono Masterclasses with world-renowned chefs to encourage learning and innovation.

Investing in the Future of Hospitality

Through initiatives such as Building Young Talent, BBM continues to mentor aspiring professionals and support the next generation of chefs. The company also promotes inclusivity by sponsoring opportunities for female and young chefs to gain international exposure.

BBM’s industry partnerships include its role as Title Sponsor of the Hotelier Maldives Awards, celebrating excellence across the Maldivian hospitality sector.

Proud Sponsors of Culinary Excellence

In 2025, BBM and its partner brands proudly sponsor 14 competition categories and 8 Main Awards, further strengthening their role in the development of culinary arts in the Maldives. Categories include Decorated Cake, Artistic Showpiece, Bread and Pastry Display, Three Desserts (Display), Desserts, Rice Dish, Asian Noodles, Team Challenge, Maldivian Dish, Creative Sandwich, Young Chef, Tea Challenge, tapas/finger food, and Iced Mocktail.

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Bestbuy Maldives, MNU forge partnership to advance hospitality education

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The Maldives National University – Faculty of Hospitality and Tourism Studies (MNU-FHTS) and Bestbuy Maldives (BBM) have officially signed a Memorandum of Understanding (MoU) to strengthen industry-academic collaboration and advance hospitality education in the Maldives.

The MoU was signed by Dr Aishath Shehenaz Adam, Vice Chancellor of MNU, and Ismail Hilmy, Chairman and Managing Director of BBM, during a ceremony attended by the university’s Chancellor Dr Mahmood Shaugee, senior management, and representatives from both organisations.

This partnership marks a significant milestone in developing a state-of-the-art Food and Beverage Practical Demonstration Kitchen at MNU-FHTS. BBM will support the upgrading of the existing Garde Manger kitchen and classrooms, contributing financially and materially to create a modern, industry-standard learning environment for future hospitality professionals.

Beyond infrastructure, the collaboration will extend to academic and training support, research and innovation in culinary arts, community engagement, and professional networking opportunities, ensuring that students gain practical, real-world experience aligned with industry expectations.

Highlighting the broader purpose of this partnership, BBM stated that, “This is a significant step in the direction of BBM’s vision involving hospitality industry outreach in the Maldives — because tomorrows start today. Initially, we will set up a world-class model kitchen that will be suitable for masterclasses and hands-on training for students; and also for product demonstrations, masterclasses, and interaction with groups of customers.”

Speaking at the ceremony, representatives from both institutions emphasised their shared vision to promote excellence in education, innovation, and human capital development in the Maldivian hospitality sector. This partnership underscores BBM’s continued commitment to supporting education and industry growth, and MNU-FHTS’s mission to bridge the gap between academia and industry — nurturing the next generation of hospitality leaders in the Maldives.

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