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Maldives' GDP drops 6.9% over pandemic impact on tourism

Mariyam Malsa
24 August 2020, MVT 21:23
Tourists arriving in Maldives following the reopening of the border. PHOTO: NISHAN ALI/ MIHAARU
Mariyam Malsa
24 August 2020, MVT 21:23

A study conducted by Visa Waiver processing firm 'Official ESTA' revealed that Maldives experienced a 6.9 percent loss of GDP due to the COVID-19 pandemic's impact on the global tourism industry.

According to Official ESTA, Maldives ranks fifth globally in terms of percentage of GDP loss. The 10 countries with the highest percentage of GDP loss are:

1- Turks and Caicos Islands: 9.2 percent

2- Aruba: 9.0 percent

3- Macao SAR, China: 8.8 percent

4- Antigua and Barbuda: 7.2 percent

5- Maldives: 6.9 percent

6- St. Lucia: 6.2 percent

7- Northern Mariana Islands: 5.9 percent

8- Grenada: 5.5 percent

9- Palau: 5.2 percent

10- Seychelles: 4.6 percent

All aforementioned findings were based on information collected from the World Bank and the World Travel and Tourism Council (WTTC).

As with numerous countries around the world, in the wake of the ongoing COVID-19 pandemic, Maldives closed its air and sea borders to tourist arrivals on March 27, halting the issuance of on-arrival visas until July 15.

The restrictions on international travel left Maldives' heavily tourism reliant economy in an extremely vulnerable state. In mid-April, the World Bank projected that Maldives would be the worst-hit economy in the South Asian region due to the pandemic.

Following the reopening of borders, Maldives had noted a significant reduction compared to pre-COVID figures with tourist arrivals for July 2020 representing only 1.3 percent of arrivals recorded in 2019.

At present, tourists are permitted to enter the country without observing quarantine, provided that they remain at the establishment where initial bookings were made, precluding any movement between islands or liveaboards throughout the duration of their stay.

Overall, Maldives estimates a shortfall of approximately USD 450 million (MVR 6.9 billion) in foreign currency and a state deficit of MVR 13 billion in 2020 as a result of the COVID-19 pandemic's impact on the tourism industry.

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