DTIS, Volume I - Enhanced Integrated Framework (EIF)

VI. Tsunami Effects
According to a joint assessment by World Bank, Asian Development Bank and the
United Nations, 7 the December 2004 tsunami was the worst disaster in Maldives history.
Waves of 1 to 4 meters wiped out several islands, and destroyed both housing and
livelihoods.
The tsunami has set back the high levels of social progress and prosperity achieved in
recent years. Total damage is estimated to be Rf 6,016 million (US$470 million), 62 per
cent of GDP. Of these losses, direct losses are $298 million, or about 8 per cent of the
replacement cost of the national capital stock. Severe damage was caused to houses,
tourist resorts, boats and other fishing equipment, schools, health facilities, transport and
communication equipment, water and sanitation, and electricity infrastructure. There has
also been substantial damage to agricultural crops and perennial trees. Farms, homestead
plots, and aquifers have been satirized and flooded with human waste from mismanaged
septic tanks. The physical damage has led to severe human suffering inasmuch as large
segments of the population have lost their dwellings, lifetime assets, savings, and sources
of livelihood. More than 80 people are dead, 26 people are missing and immediately
following the disaster, about 7 per cent of the population was living in temporary shelters
or with relatives.
As far as the tourism sector is concerned, the initial assessment is that out of the 87 resort
islands in the Maldives, 64 resorts remain in operation. Nineteen resorts had to be closed
due to the damage caused by the tsunami and 4 resorts were under construction before the
incident.
As foreign investors mainly own the resorts, the cost of rebuilding and/or repair is being
financed mainly from insurance policies. Repair work is expected to be completed during
2006 at an estimated cost of Rf 19,2 billion (US$1.5 billion). The loss to the economy is
mostly in terms of a decrease in arrival of tourists as well as lost incomes.
Within the fisheries sector, the pole and line tuna fishing sub-sector and the small-scale
fish-processing sub sector were most affected by the tsunami. Fishery infrastructure such
as fishery island harbours, safe anchorage and boat sheds were damaged on several
islands. Several fishing communities were displaced. Over 100 fishing vessels in the
medium size range and 20 artisan fishing vessels are reported lost or seriously damaged.
An additional 22 vessels are out of commission due to damage to engine and fishing gear.
With an average of 10 crewmembers per vessel, this means a direct loss of income
earning opportunity for about 1,200 fishermen. Traditional fish processors, mainly
women, on the most affected atolls in the central region lost their productive assets and
production stocks. Those most seriously affected could not participate in the January to
April high fishing season during 2005.
7 Maldives Tsunami: Impact and Recovery. Joint Needs Assessment by World Bank-ADB-UN System
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