Business
Maldives saw fifth biggest GDP drop over virus-related tourism loss, new study says
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:
- Turks and Caicos Islands: 9.2 per cent
- Aruba: nine per cent
- Macao: 8.8 per cent
- Antigua and Barbuda: 7.2 per cent
- Maldives: 6.9 per cent
- St. Lucia: 6.2 per cent
- Northern Mariana Islands: 5.9 per cent
- Grenada: 5.5 per cent
- Palau: 5.2 per cent
- 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:
- United States: $30.7 billion
- Spain: $9.7 billion
- France: $8.8 billion
- Thailand: $7.8 billion
- Germany: $7.2 billion
- Italy: $6.2 billion
- United Kingdom: $5.8 billion
- Australia: $5.7 billion
- Japan: $5.4 billion
- 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
Business
Waste Management Corporation (WAMCO) Marks a Significant Step Towards Transforming Urban Waste Management
Waste Management Corporation (WAMCO) marked a significant step towards plastic waste management with the adoption of dedicated vehicles handed over to boost this transformation of urban waste management supported by The Coca-Cola Foundation (TCCF) and the United Nations Development Programme (UNDP) in the Maldives.
In March 2024, UNDP Maldives officially handed over a fleet of six vehicles to WAMCO, which included two electric vehicles (EVs), as part of an initiative aimed at enhancing waste management across the Greater Male’ Area (GMA). This acquisition, facilitated through the financial support of TCCF paves the way for a crucial advancement in bolstering PET collection efforts and tackling the challenge of plastic waste in the Maldives.
“This initiative marks a significant step towards boosting recycling rates and combating environmental pollution in the Maldives,” stated Pek Chuan Gan, Deputy Resident Representative of UNDP Maldives speaking at the handover ceremony. “Integrating electric vehicles into WAMCO’s fleet and improving PET recycling processes not only lowers carbon emissions but also pioneers renewable energy use in waste management. It’s a vital move for steering the Maldives towards a sustainable and renewable-powered future.”
The provision of electric vehicles marks a continuation of UNDP Maldives’ support to the Government’s vision to introduce renewable energy in key sectors such as waste management that significantly contribute to the country’s renewable energy transition ambition. By embracing clean energy solutions, such as electric vehicles in waste management practices, the Maldives can further reduce its carbon footprint and move closer to achieving its renewable energy goals.
“Utilizing eco-friendly vehicles is a pivotal change for WAMCO, signifying a major leap towards modernizing waste management in the Maldives,” remarked Mujthaba Jaleel, Managing Director, from WAMCO. “This collaboration highlights the shared commitment to environmental stewardship and the potential for such partnerships to catalyse meaningful progress in sustainability and about the positive impact these vehicles will have on our operations and the environment.”
Representatives from UNDP Maldives, WAMCO, and The Coca-Cola Foundation’s unified efforts towards a sustainable future. Photo courtesy: CIAO Advertising.
“Our commitment goes beyond just recycling; it’s about fostering a culture of sustainability,” remarked Saadia Madsbjerg, President, Coca‑Cola Foundation and VP Community Affairs. “By enhancing waste management in the Maldives, we aspire to set a benchmark for environmental stewardship.”
For The Coca-Cola Foundation, together with the stakeholders, the aim is to propel Maldives towards a future where plastic circularity is not just envisioned but actively pursued. By channelling resources and expertise into the heart of waste management, TCCF has made a sizeable contribution in enhancing and attracting investment to this crucial sector in the Maldives. This initiative is a testament to TCCF’s commitment to fostering sustainable practices and promoting the reuse and recycling of plastics, thereby reducing environmental impact, and paving the way for a circular economy.
The fleet handover event held on March 18, 2024, served as a celebration of collaboration in waste management. Representatives from UNDP Maldives, WAMCO, The Coca-Cola Foundation, government officials, and stakeholders came together to mark this significant step and reinforced their collective dedication to building a more sustainable future for the Maldives.
Coca-Cola is thrilled to unveil its official partnership with UEFA EURO 2024TM, launching an engaging promotional campaign designed to give football enthusiasts across the Maldives the extraordinary opportunity to experience the Finals live in Berlin, Germany.
This season, Coca-Cola reintroduces its iconic football-themed packaging, igniting excitement on store shelves. To join the promotion, customers need to simply open the promotional pack, find the six-digit code under the Cap (for PET bottles) or Tab (for Cans) and enter the giveaway by sending the code to 2626, with chances of winning increasing every time they send a code! Available in a variety of sizes, these packs ensure that every fan has a chance to participate.
During the promotion, six (06) couples will win a trip to experience the UEFA EURO 2024TM Final Match in Berlin, Germany with great Coca-Cola hospitality — an integral part of Coca-Cola’s initiative to deepen its connection with football fans and infuse the season with refreshing excitement. Consumers will also have a chance to win a Smartphone which is to be won every other day and branded Premia daily making it a power-packed promo.
The promotional campaign will span from May 1st to June 15th, 2024. Throughout this period, lucky draws will be conducted every other day and broadcast live on ICE TV, with the first Live Draw starting on the 11th of May 2024.
Kaushali Kusumapala, Country Director – Coca-Cola Maldives and Sri Lanka, is enthusiastic about the new partnership, stating, ” This partnership with UEFA EURO 2024TM, marks a milestone in our commitment to sports and entertainment. We’re excited to offer fans unique opportunities that showcase our dedication to enriching their experience of the tournament, one refreshing sip at a time.”.
As the tournament draws nearer, Coca-Cola will announce further exciting activities under its UEFA EURO 2024TM campaign. Fans are invited to stay engaged and participate in the ongoing promotions to enhance their chances of witnessing the zenith of European football live.
Grab a Coke, gather with friends and family, watch the UEFA EURO 2024TM matches live, and stand the chance of winning many fabulous prizes! Stay tuned to the official Coca-Cola Maldives Facebook and Instagram pages for the latest UEFA EURO 2024TM updates and promotions.
Coca-Cola has been a partner of every UEFA European Football Championship since 1988, and for more than three decades, Coca-Cola has played an essential role in the competition by uniting people and providing fans with unforgettable and innovative experiences.
The Maldives Association of Tourism Industry (MATI) held its 34th Annual General Meeting at Kurumba Maldives today, with a total of 100 members in attendance.
The day’s events began with a welcome address from the Chairman of MATI, Mr. Mohamed Umar, who also presided over the session. The agenda included an address from the Secretary General, Mr. Ahmed Nazeer, the review and approval of the minutes of the 33rd AGM, the review and adoption of the Annual Report and Financial Reports for 2023, the approval of the 2024 budget, the appointment of auditors for 2024, the welcoming of new members and election of executive board members to the two vacant positions (by-election).
In the member discussion session, the following topics were covered: the Government’s aim to reach net-zero emissions by 2023 and renewable energy generation in the Tourism Industry, new terminal of Velana International Airport and developments, employment challenges, the Industrial Relations Act and trade unions, environmental conservation and the significance of creating and executing efficient management plans for protected areas like the South Ari Marine Protected Area (SAMPA).
Following the official proceedings, the Minister of Tourism Hon. Ibrahim Faisal and the Minister of Economic Development and Trade Hon. Mohamed Saeed joined the forum. The Ministers provided remarks and engaged in a Member Q&A session. This session provided members with the chance to directly engage with the Ministers and delve into crucial industry topics. The queries focused on the Economic Outlook, forthcoming development plans and immediate challenges and issues affecting the Tourism Industry.
A video presentation was also showcased that delved into the extensive work undertaken by MATI in 2023. The video also touched upon the Tourism Industry’s performance over the past 5 years, as well as the current and projected human resource capacity of the sector.
In his closing remarks, the Secretary General highlighted the importance of collaborative efforts in addressing industry challenges and called for greater unison amongst industry stakeholders, ending with an acknowledgement of the promising start to the year in terms of arrivals.
Executive Board Members elected to the 2 vacant positions (by-election):
- Ibrahim Shareef, CEO and Managing Director of Maldives Airports Company Limited
- Renato De Olivera, General Manager of The Ritz-Carlton Maldives, Fari Islands and representative of Marriott International
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