BANGKOK -- As a wave of anxiety spreads across Asia with the continuing spike in coronavirus infections and deaths, the Maldives is basking in a rising tide of good fortune thanks to a hitherto unexpected source: Russian tourists.
Planeloads of Russian vacationers have been jetting into the Indian Ocean archipelago -- known for its remote, idyllic resort islands -- in record numbers, making Aeroflot, the Russian national carrier, an increasingly common sight at Velana International Airport, the South Asian nation's international gateway. The Russian airline is one of 36 airlines from 35 countries now flying in, two more than the 34 airlines that were operating in 2019, the pre-COVID-19 year.
The Russian discovery of the Maldives in the time of COVID-19 is making up for a loss of tourists from China, which was the main source of vacationers until 2019. For the first half of 2021, only 738 Chinese tourists flew in, down nearly 97% from the 33,889 during the same period in 2021, according to the Ministry of Tourism.
Russia has emerged as the leading source of tourists for the first half of 2021, accounting for 124,651 vacationers, ministry data shows. That is a dramatic 190% increase from the pre-COVID-19 year of 2019.
Soneva, a luxury resort that charms its guests with its spread of private villas that appear to float above clear blue waters, has benefited from the record Russian influx. Russian vacationers accounted for 30% of the bookings in the first half of this year, double the level in 2020 and a striking 80% increase from 2019, according to the resort. British tourists have accounted for 20% of the bookings in 2021, followed by Germans at 12%.
A luxury resort, Soneva, in the Maldives, has benefited from a record influx of Russian tourists, who account for 30% of its bookings in the first half of the year, double the level in 2020. © Getty Images "On average our Russian guests tend to stay around 12 nights," said Carissa Nimah, chief commercial officer of Soneva, which owns two luxe island resorts, the Soneva Fushi and Soneva Jani. "During the height of COVID-19 last year, many guests even opted for longer stays of up to three months and beyond," far exceeding the average booking of nine nights.
Not surprisingly, the Ministry of Tourism is playing up this unexpected Russian shot in the arm as a payback from the government's gamble last July to buck the global trend of shutting airports due COVID-19 and open the country to pandemic-weary international travelers. South Asia's smallest nation saw its tourist numbers hit 510,549 by the end of June, led by the Russians, raising the government's hopes that it will attract 1.5 million vacationers by the end of this year. That would come close to the pre-COVID-19 record-breaking high of 1.7 million tourists in 2019, according to the ministry.
This recovery has been shaped by the country's natural advantage in luring vacationers back -- beachside settings that offer pampered isolation -- and a mix of public health measures to control the pandemic.
The Maldives has recorded 76,627 coronavirus infections and 219 deaths since the pandemic began to spread last year in the country of 400,000 people, who live on 198 of its 1,190 islands. Some resort islands also reported COVID-19 cases.
The impact of the pandemic last year left the country's economy reeling, given its heavy dependency on tourism catering to high-spending tourists drawn to the country's marketing pitch of one island, one resort. Tourism was the largest foreign exchange earner in the $5 billion economy, generating close to 60% of foreign income in 2018.
According to the latest Maldives Economic Review, an independent economic policy publication, the country endured more economic pain than its peers among the small developing island countries in the Indian and Pacific oceans: an economic contraction of 32% in 2020, compared with the regional average of 13%. This was largely due to the drop in revenue from tourism, which accounts for 30% of the gross domestic product.
But a turnaround appears to be on the horizon.
Tourism was the Maldives' largest foreign exchange earner in 2018, generating close to 60% of its foreign income. © Getty Images "Since the economy is so heavily tied to tourism -- which is expected to boom in 2021 -- the Maldives' GDP and government revenue levels are projected to increase by 17% and 18% respectively," the Maldives Economic Review said in a study of COVID-19's impact on the Maldives' economy, government revenue and debt. "While this immediate growth is expected to help offset drastic losses in 2020, the country isn't expected to return to the pre-pandemic GDP or government revenue levels until 2023."
The rebound of tourism arrivals has fed this glimmer of hope. "I anticipate the economy to recover strongly this year, based on the assumptions that borders will not be closed for any amount of time, and the trend in tourist arrivals and bed-nights continue even with seasonal variations," Fazeel Najeeb, the former governor of the Maldives Monetary Authority, the central bank, told Nikkei Asia. The impact of the tourism revival helped lift quarterly GDP growth in the first quarter of 2021 to 34.4% over the previous quarter, he said.
Since making its gamble last July, the Maldives has opened 728 tourist facilities, ranging from 154 resorts and 425 guesthouses to 139 so-called live-aboard safari boats, according to the Ministry of Tourism. The world's high rollers spend $1 million a week at some of the small, ultra-luxe hideaway island resorts.
Some resorts had to reduce their normal rates to entice travelers back, such as the Summer Island Maldives, a four-star resort on an uninhabited island. "We had to cut rates -- about 25% to 30% down from pre-COVID periods," said Mari Shareef, the resort's manager. And it paid back with a rise in Russian tourist bookings for the first half of 2021, which reached 741 guests, from 187 in 2020 and 217 in 2019.
Russian and Eastern European tourists accounted for 35% of the resort's bookings for the first half of 2021, a 97% increase from 2019, according to the resort. About 80% of the guests are couples, 15% are families and friends, and 5% are solo travelers.