The Edition
facebook icon twitter icon instagram icon linkedin icon

Latest

Maldives shares concerns over COVID-19 impact on economy with SAARC

Fathmath Shaahunaz
16 March 2020, MVT 13:07
President Ibrahim Mohamed Solih speaks at SAARC video conference
Fathmath Shaahunaz
16 March 2020, MVT 13:07

President Ibrahim Mohamed Solih shared concerns regarding the impact of the COVID-19 pandemic on the Maldivian economy with SAARC leaders on Sunday.

Participating in a video conference with the leaders of SAARC countries to discuss the South Asian Regional response to the coronavirus, President Solih declared that Maldives was posed to lose between USD 135.9 million (MVR 2.5 billion) and USD 446.6 million (MVR 6.9 billion) in state revenue this year due to repercussions on the tourism sector.

He stated that the number of tourists began to decline several weeks prior to the first confirmed COVID-19 case in Maldives. Noting that the hospitality industry contributed to two thirds of the country's GDP and directly or indirectly impacted all areas of the Maldivian economy, he revealed that visitor arrivals dropped by 14.3 percent in February and 22.8 percent during the first 10 days of March, compared to the same periods last year.

The president voiced concerns that should the decline persist at the current rate, Maldives would experience a 35 percent drop by the end of 2020. He went on to stress that nosediving revenue would further hinder efforts to curb and control the spread of COVID-19.

President Solih also stated that the negative impact would also affect SAARC countries as the Maldivian tourism industry is linked to several member states as well.

In addition to the Maldivian economy, President Solih shed light on the measures currently undertaken by the state against the coronavirus, including the establishment of quarantine facilities, implementing detection measures, and advising the public to exercise personal hygiene, avoid mass gatherings and practise social distancing.

Noting that Maldives has also imposed travel restrictions, banning entry from badly affected countries such as China, Italy, Iran, Spain, Germany and certain regions of South Korea and France, he stressed the importance of regional efforts to ensure that South Asian countries’ health care resources do not become overburdened.

The president, along with other participants, welcomed suggestions by Indian Prime Minister Narendra Modi who initiated the SAARC video conference. PM Modi proposed to form a designated COVID-19 fund with contributions from all SAARC member states, with India to make an initial contribution of USD 10 million, as well as a regional relief package for South Area and to devise a long-term recovery strategy.

Concluding the call, President Solih thanked PM Modi for taking the initiative on holding the video conference, and again expressed gratitude for the Indian government's assistance in evacuating Maldivian nationals from Wuhan City, China, the epicentre of the COVID-19 outbreak.

SAARC leaders that participated in the video conference included Afghan President shraf Ghani, Sri Lankan President Gotabaya Rajapaksa, Bangladeshi Prime Minister Sheikh Hasina, Nepali Prime Minister Sharma Oli, Bhutanese Prime Minister Lotay Tshering, and Pakistani state minister of health Dr Zafar Mirza.

Maldives currently has 13 confirmed cases of COVID-19, including a tourist couple on a liveaboard, two cases from Anantara Dhigurah, five foreign nationals from Kuredu Island Resort as well as two foreign citizens from Sandies Bathala and Kuramathi Maldives each. No locals have tested positive for the virus as of yet.

The latest global statistics show that the virus has infected over 169,900 people around the world with over 6,500 fatalities. From those infected, more than 77,700 people have recovered from the disease.

Share this story

Related Stories

Discuss

MORE ON NEWS