India-Maldives Diplomatic Spat Triggers Sharp Decline in Maldives Tourism
Written by Sanjay Kumar
In the wake of the recent diplomatic row between India and the Maldives, the island nation’s tourism sector is witnessing a drastic downturn, with tour packages experiencing a substantial drop in demand and prices plummeting. The dispute originated from derogatory remarks made by three Maldivian ministers about Indian Prime Minister Narendra Modi and his visit to Lakshadweep, posing a threat to the tourism revenue of the Maldives.
Indian tour operators have reported a significant decline in enquiries and a corresponding 40% drop in bookings for Maldives holiday packages. Despite multiple long weekends in January, travel agents are witnessing a noticeable decrease in demand, leading to a substantial reduction in package prices. For instance, a three-day package from Hyderabad to the Maldives, which previously ranged between ₹55,000 and ₹70,000, is now available for as low as ₹45,000.
MakeMyTrip, on the other hand, has experienced a remarkable 3,400% surge in Lakshadweep enquiries on its website following the diplomatic dispute. In contrast, one-way flight tickets from Hyderabad to Male have seen a decline in prices, ranging from ₹12,000 to ₹15,000, compared to the previous average of ₹20,000.
According to data from the tourism ministry in the Maldives, Indian residents constituted 11.2% of the total tourist arrivals in 2023, amounting to 18.42 lakh visitors. Russia closely followed with an 11.1% share. Despite the decline in enquiries, travel agents have not reported any cancellations from Indian tourists planning trips to the Maldives.
In response to the strained relations, Indian travel booking website EaseMyTrip has announced the suspension of flight bookings from India to the Maldives. Despite this development, no Indian airline has canceled flights between the two nations, and approximately 60 flights operate weekly, with Indian carriers accounting for 50 of them.
In 2023, Indian tourists emerged as a key driving force in the Maldives, contributing $380 million to the nation’s tourism industry. With Indians positioned to become the fourth-largest global travel spenders by 2030, the escalating #BoycottMaldives movement could potentially result in significant losses for the Maldivian tourism sector.
The situation is compounded by the absence of Chinese international travelers, leaving a void that Indian tourists may no longer fill if tensions persist. As both nations navigate this diplomatic challenge, the tourism industry remains at a crossroads, balancing geopolitical realities with the economic impact on one of the Maldives’ key revenue sources.
