The Maldives tourism industry is grappling with a significant drop in Indian tourists, causing a dent in its revenue and urging a need to mend relations with New Delhi.
Once topping the charts in visitor numbers, India has slipped to sixth place in 2024, prompting concerns from the local tourism sector about the impact on the archipelago’s economy.
The downturn follows a backlash against the Maldives after three officials made derogatory remarks about India and Prime Minister Narendra Modi on social media. This was triggered by Modi’s posts showcasing the Lakshadweep Islands in January.
In 2023, over 1.7 million tourists visited the Maldives, with Indians comprising the largest group at over 209,000 visitors. However, this number has dwindled, with Indian arrivals dropping to 27,224 by March 2, marking a 33% decline compared to the previous year.
The decline in Indian visitors is a cause for concern for the local tourism industry, which heavily relies on Indian tourists, especially during off-peak seasons. Experts predict potential losses exceeding USD 1.8 to 2 billion due to decreased Indian arrivals.
Travel agencies and operators report an 80% revenue decline due to the absence of Indian tourists, highlighting the market’s significance for the Maldives. Even affluent Indian-origin travelers from other nations have reduced their visits, further underscoring India’s crucial role in Maldivian tourism.
Efforts are underway to revive Indian tourism, including the resumption of direct flights between Maldives and Thiruvananthapuram in Kerala. However, there is a pressing need for the Maldives to reconcile with India to restore tourism and safeguard its fragile economy.
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