The quarterly business survey report for Q1 2022 released by the Maldives Monetary Authority (MMA) shows the revenue and bookings of resorts and hotels in Maldives took a significant hit due to the ongoing Russia-Ukraine war.
The business survey for Q1 2022 was conducted from March 24-April 12. 45 out of 64 tourism businesses responded to the questions.
The businesses that took part in the survey said they expect 20 percent of total bookings in 2022 to be Russian tourists.
72 percent of the businesses said the Russia-Ukraine war negatively impacted their revenue and bookings in Q1 2022.
34 percent reported they suffered losses of less than 10 percent from the Russian market, another 34 percent reported they suffered losses of 10-25 percent, and six percent reported losses of 25-50 percent.
42 percent of resorts reported they faced cancellations of 10-25 percent from the Russian market.
44 percent of businesses reported they expected less than 10 percent decline in revenue from the Russian market due to the Russia-Ukraine war compared to their initial forecast for 2022, while 36 percent said they expected a 10-25 percent decline, and 10 percent said they expected a 25-50 percent decline.
Meanwhile, 48 percent of businesses reported they expected less than 10 percent decline in bookings from the Russian market due to the Russia-Ukraine war compared to their initial forecast for 2022, while 28 percent said they expected a 10-25 percent decline, eight percent said they expected a 25-50 percent decline, and six percent said they expected a decline of more than 50 percent.
Russia had been the top source market for tourist arrivals to Maldives this year, before the Russia-Ukraine war.
However, the Russian flag carrier Aeroflot had suspended flight operations to Maldives following an escalation in the war on March 8, leading to a significant drop in tourist arrivals from the Russian market.
Before the Russian invasion, the market had made for 15.8 percent of tourist arrivals to Maldives. After the invasion, the market dropped from the top to third place.
Statistics released by Tourism Ministry show 56,162 Russian tourists Maldives by last week.
Aeroflot is set to resume flights to Maldives on May 13, which is expected to improve arrivals from the market.
The current top source markets for tourist arrivals are the United Kingdom and India.