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Tourism Update V O L 9 | I S S U E 3 5

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Tourism Update V O L 9 | I S S U E 3 5 Tourism Update V O L 9 | I S S U E 3 5 BRIEF ANALYSIS ON THE TOURISM INDICATORS OF MALDIVES APRIL 2020 STATISTICS & RESEARCH SECTION MINISTRY OF TOURISM VELAANAAGE,5TH FLOOR,AMEERU AHMED MAGU MALE',MALDIVES Tourist Arrivals and Travel 200,000 173,347 20 149,788 0 Restrictions to the Maldives 150,000 -20 -COVID-19 pandemic adversely 100,000 59,627 -40 affects tourist arrivals by -20.7% in Growth (%) No. Arrivals of 50,000 Q1 2020 -60 0 -80 January February March -Travel restrictions were put in place for key markets Arrivals Growth Figure 1- Tourist Arrivals and Growth, 1st Quarter -Maldives closed its borders on 27th 2020 March 2020 The first European country to get a Maldivian The first quarter of the year is an anticipated travel advisory was Italy, one of the hardest hit th period in the Maldives. The quarter is the peak nations by COVID-19, effective from 8 March period of several key markets to the Maldives 2020. On 12th March 2020, COVID-19 outbreak such as China and Italy. Resorts and other was declared a pandemic by WHO. accommodation facilities alike, gear up for the In a span of a week, travel restrictions were influx of tourists who come to rest and relax in issued by Maldives for other European markets; th the tiny isles of the Maldives. This year, on 5 Spain, French regions Île-de-France & Grand January, when a cluster of unknown pneumonia Est and German regions Bavaria, North Rhine- cases were reported in Wuhan, the tourism Westphalia and Baden-Württemberg on 15th industry was thriving in the Maldives. Over March 2020. While a further travel restriction growing concerns of the newly found was placed on U.K effective from 19th March coronavirus, January recorded 173,347 tourists 2020, Asian countries such as Malaysia (effective with a growth of 14.4%. 17th March 2020), Sri Lanka (effective 21st As COVID-19 pandemic unfolded, Maldives March 2020) and Bangladesh (effective 24th placed its first travel restriction - to restrict the March 2020) were also issued travel advisories. entry of any passenger with a travel history to In the efforts to curb COVID-19, the Maldives China, commencing from 5thFebruary 2020.This took a drastic measure to close its borders. The was followed by similar travel restrictions to Iran borders were officially closed from 27th March (effective 26th February 2020) and South Korean 2020, 0:00 hrs. regions, North Gyeongsang province and South Amid COVID-19, countries across the world rd Gyeongsang province (effective 3 March 2020). resorted to containment strategy by lockdowns, Hence February saw the impact of COVID-19 suspending international flights and border mostly on Chinese market, as it dwindled on closures. Air travel was widely disrupted hence numbers. By the end of February, arrivals to the March 2020 was a bleak month for tourism in the Maldives were down by -11.1%, accounting for Maldives. The impact of COVID-19 hit March 149,788 tourists. Meanwhile International arrivals by a staggering -63.4%, reducing arrivals tourist arrivals dropped -9% in February. to 59,627, compared to 162,843 in 2019. 1 TOURISM QUARTERLY REPORT – 1st QUARTER 2020 International tourist arrivals fell by -57% in 28.3% (Refer Table 1). In 2019, Asia & the Pacific March. contributed to 35.3% shares for the same period. According to UNWTO World Tourism Barometer Midde East … Africas 0.9% May 2020, Travel and tourism is among the most Americas 4.9% affected sectors by the COVID-19 pandemic. For the first time in history, 100% of worldwide destinations have introduced travel restrictions Asia & the in response to the pandemic while 156 Pacific 28.3% destinations have completely closed its borders Europe for international tourism. 62.5% Figure 3- Market share by regions, end 4th -All regions affected by COVID-19, Europe Asia & the PacificQuarterAmericas 2019 Middle East Africa particularly Asia & the Pacific Figure 3- Market share by regions, end 1st By the end of the first quarter of 2020, all market Quarter 2020 regions except the Middle East registered declines in growth. All Market regions performed positively in January before Europe was also an affected region in Maldives. decreasing in March. It remained as the top market region to the Maldives accumulating over 62% shares. The 100.0 30.0 first quarter of 2020 was almost over when travel restrictions started to pan out in March. 20.050.0 Thus, all the European markets sharply declined 10.0 4.9 in March. 0.00.0 AfricaAfrica MiddleMiddle AmericasAmericas AsiaAsia & & EuropeEurope Arrivals Market Growth (%)Growth -10.0 Change EastEast thethe January-March Share Growth (%) -50.0 -20.0 PacificPacific -11.3 -19 end Q1 -30.0 2019 2020 20 / 19 2020 -100.0 -27.4 (%) -40.0 -36.6 Europe 269,619 239,087 -11.3 62.5 January February March 2019 Q1 2020 Central/Eastern Europe 61,362 63,653 3.7 16.6 Northern Europe 50,508 45,301 -10.3 11.8 Figure 2- Growth by regions, end 1st Quarter Southern Europe 64,152 55,412 -13.6 14.5 2020 Western Europe 88,718 71,103 -19.9 18.6 East Mediterranean 4,879 3,618 -25.8 0.9 Asia and the Pacific was the hardest hit region Europe Asia & the Pacific with a decrease of -36.6% in tourist arrivals for 170,602 108,154 -36.6 28.3 North East Asia 100,102 50,578 -49.5 13.2 the Jan-Mar 2020 period. China was the first South East Asia 17,928 11,581 -35.4 3.0 epicenter of COVID-19, which lead to direct flight South Asia 42,121 39,341 -6.6 10.3 cancellations and an early travel restriction. This Oceania 10,451 6,654 -36.3 1.7 affected the Chinese market to Maldives heavily. Americas 25,804 18,721 -27.4 4.9 The loss of Chinese market shares halved the Middle East 12,810 13,436 4.9 3.5 subregion North East Asian shares and sunk the Africa 4,088 3,311 -19.0 0.9 overall market share of Asia & the Pacific to Table 1- Arrivals, Growth and shares by regions, end 1st Quarter 2020 2 TOURISM QUARTERLY REPORT – 1st QUARTER 2020 Though January and February yielded positive Top 10 markets to the Maldives growths, Europe was unable to compensate for the decline, ending the quarter with a decline of -11.3%. Among sub regions Central/Eastern -Italy, India and China - the top 3 Europe was the only region which posted a positive growth, though it also went downhill in markets March. Globally Europe is one of the hardest hit Rank 2019 2020 regions in the pandemic, hence the first quarter 1 Italy 52,848 44,612 alone would not fully capture the impact of COVID-19. 2 India 36,053 34,862 3 China 76,568 33,889 The Americas saw a -27.4% decrease in tourist 4 U.K 36,116 32,818 arrivals in the first quarter of the year. The 5 Russia 26,284 28,949 average growth was weighed down by decreases 6 Germany 37,279 28,228 in both February(-10.7%) and March(-68.8%). 7 France 26,692 21,784 The region attained 4.9% by the end of first 8 U.S.A. 16,339 11,414 quarter of 2020. 9 Switzerland 10,696 9,170 The Middle East was the only region contributing 10 Japan 11,163 8,302 a positive growth (4.9%) for the Jan-Mar period. Middle East recorded robust results for January, Table 2- Top 10 markets to Maldives, end 1st enhanced by Saudi Arabia which recorded a Quarter 2020 growth over 100%. February also recorded positive growth for the region before decreasing The top ten markets slightly shifted, and market in March. shares altered - an impact of the pandemic. China, the top market for years stepped down to Africa also declined by -19% for the January – the third position while Italy climbed up to the 1st March period. Similar to Middle East African place. Italy held the highest market share of region also plummeted in March. 11.7% Switzerland, a traditional market to the Maldives 50,000 20.0 45,000 10.0 made an entrance to the top ten list after 2 40,000 th 0.0 years, to the 9 position. Japan stepped down to 35,000 th 30,000 -10.0 the 10 position. 25,000 -20.0 20,000 -30.0 China suffered the highest loss in market share 15,000 -40.0 from 16.7% in 2019 to 8.9% in 2020. On the other 10,000 5,000 -50.0 hand, markets such as India, U.K, Russia and 0 -60.0 France increased their market shares. As seen in Figure 4, Russia was the only market to record an increase in growth in the first Arrivals Growth (%) quarter of 2020. During the pandemic the market recorded an impressive growth of 10.1% Figure 4- Arrivals and Growth of top 10 markets, end 1st by the end of March 2020. The direct flight Quarter 2020 Aeroflot did not cease its operations to Maldives, until borders were closed. 3 TOURISM QUARTERLY REPORT – 1st QUARTER 2020 the only major source market recording a 2.4% 2.2% Italy positive double digit growth of 10.1%. Russian 3.0% 11.7% India market also declined in March (-27.5%) but was 5.7% China able to offset the negative growth. The market was in flex when the Maldivian borders closed.
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