Job security for resort workers uncertain, tourism to normalize in 2021

The Rapid Livelihood Assessment by UNDP and Economic Ministry has anticipated that the job security for resort employees beyond the month of July is an uncertainty for the majority.

A large number of resort employees have had their jobs affected due to the economic impact of COVID-19. Many employees were forced to go into no-pay leaves or accept reduced wages due to the circumstances.

The assessment report focused on tourism read that a large number of employees that are currently retained at resort establishments up to the end of June 2020 risk losing their jobs after July 2020 as resorts may not be able to retain them.

Experts forecast a slow recovery for the Maldivian tourism industry with occupancy levels that are unlikely to normalize until the end of the first quarter next year. Although resorts are seeking to reopen in July, it will be done with minimal operations and with a skeleton staff structure, read the report.

It also stated that employees who lost jobs and are on no pay will experience an average income loss ranging from USD 600 to USD 1,000 per month for the period April to June 2020, read the report which warned of negative impact on the households.

Interviews held with resort workers registered in the online job portal indicated that most would not be able to manage household expenses beyond the first month (April) and most did not have any savings, read the report.

The in-depth interviews also indicated that the majority of the informants did not foresee any impact or negative impact on the community. When specifically asked what changes the influx of resort workers might bring to their community, several concerns such as substance abuse, criminal activity, theft were mentioned, read the report.