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The present study examines the impact of COVID-19 on Maldivian tourism, highlighting the loss of tourists and tourism earnings for the period 2020Q1 to 2021Q2 and analyses the recovery rate of inbound tourists’ arrivals post border re-opening (i.e., 2020Q3 – 2021Q2). Seasonal Autoregressive Integrated Moving Average (SARIMA) model was employed to generate monthly forecasts for 2020 and 2021. The results indicate an estimated loss of 1.9 million tourists between 2020Q1 and 2021Q2. A massive drop in tourist arrivals caused an estimated loss of USD 3.5 billion in tourism earnings by June 2021. Results further indicate that with an average monthly recovery rate of 3%, inbound arrivals have recovered 34% of forecasted levels and 40% of 2019 levels by June 2021. The measures implemented by the government of Maldives played a vital role in the recovery of inbound tourism. However, the rebound of tourists has not reached the desired levels except for the arrivals from Russia. Therefore, additional strategies must be implemented for the quick revival of the Maldivian tourism industry. This study expands and enriches tourism management knowledge in the face of a massive crisis highlighting important managerial and policy implications for reviving the tourism industry of the Maldives.

Assessing the Recovery Rate of Inbound Tourist Arrivals Amid COVID-19: Evidence from the Maldives