The Maldives tourism industry is experiencing a significant downturn in revenue due to a noticeable decline in visitors from India, once the island nation’s largest tourist source. According to the Maldives Tourism Ministry, India has fallen to the sixth position in 2024 in terms of visitor numbers, a stark contrast to leading the chart in 2023. This downturn is attributed to a backlash following derogatory remarks made against India and Prime Minister Narendra Modi by Maldivian officials on social media.
Statistics from the Maldives Tourism Ministry reveal a sharp decline in Indian tourists. In 2023, the Maldives welcomed over 17 lakh tourists, with Indians constituting more than 2,09,198 of these visitors. However, as of March 2024, Indian tourist arrivals have plummeted by 33 percent compared to the previous year. The local tourism sector, heavily reliant on Indian visitors during the off-peak season, is now facing potential estimated losses between USD 1.8 billion to USD 2 billion.
Tourism experts emphasize the importance of the Indian market, noting its diverse demographic from affluent to budget travelers. The reduction in Indian visitors, including affluent Indian-origin travelers from other countries, has led to an 80 percent revenue decline for travel agencies and operators focusing on this market segment.
In an effort to revive tourism from India, authorities are hopeful that the resumption of direct flights between the Maldives and Kerala, India, will encourage more visitors. The situation underscores the necessity for the Maldives to repair relations with India, recognizing the critical role of strong bilateral ties in ensuring economic stability and security for the island nation.
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