Maldives Feels The Pinch As Indian Tourist Influx Dries Up

The Maldives, a once-popular destination among Indian tourists, is now witnessing a significant decline in visitors from the subcontinent, leading to a substantial hit to the country's tourism industry, recent reports indicate.

In 2024, India has slipped to the sixth position in terms of tourist arrivals, marking a stark contrast to its top-ranking status just a year prior. This downturn has set off alarm bells within the local tourism sector, underscoring the economic risks facing the archipelagic nation in the Indian Ocean.

Why The Decline In Indians?

The downturn in Indian arrivals can be traced back to a series of derogatory remarks made against India and Prime Minister Narendra Modi by three Maldivian officials on social media. The comments came in response to Modi's sharing of images and videos showcasing the scenic Lakshadweep Islands on India's west coast on January 6. Read more about it here.

What To The Stats Say?

Statistics from the Maldives Tourism Ministry highlight the gravity of the situation, with over 17 lakh tourists visiting the island nation in 2023, of which more than 2,09,198 were Indian visitors. However, the number of Indian tourists dropped significantly to just 27,224 arrivals as of March 2, 2024, representing a 33 per cent decline compared to the previous year.

Industry insiders have expressed deep concern over the repercussions of dwindling Indian arrivals. A local news portal emphasised India's pivotal role in sustaining tourism-related revenue during off-peak seasons, noting that Indian travellers often visit the Maldives during hot seasons, offsetting declines in European market arrivals.

The decline in Indian arrivals has already taken a toll on revenue, with reports estimating losses ranging from USD 1.8 billion to USD 2 billion. Travel agencies and operators rely heavily on Indian tourists, who report an alarming 80 per cent decline in revenue, signalling a precarious situation for the tourism sector.

The Way Ahead

To revive tourism from India, authorities are pinning hopes on resuming direct flights between Hanimaadhoo International Airport in the Maldives and Thiruvananthapuram in Kerala state, India.

However, the local news portal cautioned that repairing diplomatic ties with India is imperative for the Maldives' economic recovery. The news portal stressed the need for humility and foresight, warning that continued arrogance could exacerbate the country's financial woes.

(With inputs from PTI)