In the wake of escalating diplomatic tensions between India and the Maldives, the neighbouring island is feeling the ripple effects as Indians continue to refrain from visiting the region which was once a favourite tourist hotspot.
Expressing concerns over the repercussions of India’s recent boycott call on his home country’s economy, particularly in the realm of tourism, Former Maldivian President Mohamed Nasheed has issued an apology on behalf of the Maldivian people.
“It has impacted the Maldives a lot, and I am actually here in India. I’m very worried about this. I want to say the people of the Maldives are sorry, we are sorry that this has happened. We want Indian people to come on their holidays to the Maldives, and there will not be any change in our hospitality,” Nasheed said as quoted by a news agency.
However, the island country’s tourism earnings through Indian tourists have already started painting a stark picture of shifting travel patterns, underscoring the reluctance of Indian travelers to visit the country which is inching towards China.
Citing data available from the Maldives Tourism Ministry, Maldivian website Adhadhu has revealed that there has been a significant downturn in Indian tourist arrivals by 33 per cent compared to the previous year.
According to Maldives Tourism Ministry statistics for 2023, the number of Indian tourists visiting the Maldives by March 4 last year was 41,054. However, as of March 2 this year, the number has decreased to 27,224, which is 13,830 less than the previous year, as reported by Adhadhu.
Last year, India was the second largest source market for tourists to the Maldives, accounting for 10 per cent of market share during the same period. However, India has now dropped to the sixth position on the list, with a market share of 6 per cent.
Outbound Tour Operators Association of India (OTOAI) president Riyaz Munshi too noted that there has been a substantial drop in business for the neighbouring country.
“This has gone in the favour of Thailand and Sri Lanka as Indians are preferring to opt for these alternatives. In fact, more than political, pro-country sentiments are dissuading potential travelers as the neighbouring country’s preference to China has not gone down well with many Indians here,” he added.
Usually, such shifts in preference also cast a shadow on the earnings of the hotels, resorts, restaurants, and tour operators who feel the pinch as they grapple with reduced bookings and revenue losses.
In 2021 to 2023, India was the top tourist market for the Maldives, with over 200,000 tourists per year.
However, the diplomatic row which began hours after President Mohamed Muizzu, a pro-China leader, took oath in November last and vowed to ensure Maldives’ ‘sovereignty’ and one of the first steps was to demand India to withdraw all its troops.
He also broke from tradition and decided to go to Beijing on his maiden foreign trip instead of New Delhi. The controversy worsened when three Maldivian Deputy Ministers made derogatory comments about Prime Minister Narendra Modi regarding his visit to Indian island Lakshadweep and his call for the development of the region as a beach tourism destination.
This was followed by New Delhi summoning the Maldivian envoy and registering a strong protest against the viral posts. Despite the suspension of the Deputy Ministers involved, the fallout continued to reverberate, with concerns mounting in the Maldives tourism industry as a boycott campaign gained momentum in India, fueled by support from influential Indian figures, including film stars.
The Maldives Association of Travel Agents and Tour Operators (MATATO) too had conducted a survey to gauge the impact of booking cancellations by Indian guests, underscoring the significant repercussions of the diplomatic tensions on the tourism sector. However, the specific findings of this survey were not disclosed publicly.
