Resorts have begun taking cost-cutting measures as tourism industry declines and oil prices soars due to the ongoing war in the Middle East.

The country’s key industry went down as the war between US-Israel and Iran disrupted global transportation and led to a sharp rise in oil prices. There are currently at least 177 resorts operating in the country.

Sources who spoke to Adhadhu said the occupancy rate had dropped by 75 percent in some resorts. At the same time, higher oil prices have reduced revenue and increased expenditure.

"There are a lot of canceled bookings too. First, it is difficult to come to the Maldives. Second, tourists are not sure of electricity due to the fuel shortage," a manager of a five-star resort told the Adhadhu.

According to statistics, tourist arrivals have fallen by 21 percent since the war began on February 28. The biggest challenge is that traveling to the Maldives via the UAE is difficult and the alternative options are expensive.

Most resorts operate at least three generators. There are two generators for use during peak hours and a reserve generator. Diesel was added to the generators at MVR 13.92 per litre. But now diesel is priced at MVR 28.32 per litre, which is a 103 percent increase.

This has forced many leading resorts to implement cost-cutting measures. Most resorts are carrying out power outages in staff areas. Some resorts are cutting off power for two hours, four hours and six hours, according to employees.

"Our resort decided to cut off the power during lunch break. It is very difficult because of it. We can't even relax. We can't charge phones or laptops. We just stay outdoors. Most staff just return to work," said an employee of a resort with about 400 staff members.

Every resort employs hundreds of people. The number of employees depends on the number of rooms operated by the resort. Some management-level staff told Adhadhu that about 400 employees are needed for every 100 rooms.

Sources said resorts will have to take additional cost-cutting measures if the situation continues. These include offering no pay leaves, reducing the quality of food and maintaining intermittent power outages.