Indian residents constituted 11.2% of the total tourist arrivals in the Maldives in 2023, making them the largest group. However, the recent controversy has the potential to alter this trend, impacting the tourism industry in the Maldives significantly.
The recent diplomatic tensions between India and Maldives, sparked by controversial remarks from three Maldivian ministers about Prime Minister Narendra Modi's Lakshadweep visit, are now casting a shadow over the tourism sector. Indian tour operators have witnessed a notable decline in enquiries for Maldives holiday packages, leading to a considerable drop in prices.
While MakeMyTrip reported a significant surge of 3,400% in Lakshadweep enquiries, bookings for Maldives have witnessed a sharp 40% decrease.
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It is reportedly said that tour operators are reporting reduced enquiries and slashed prices for Maldives packages, with examples of three-day packages from Hyderabad dropping from Rs 55,000–70,000 to Rs 45,000. This trend is mirrored in flight prices, with one-way tickets from India to Male now costing Rs 12,000–15,000, down from the previous average of Rs 20,000. Despite the decline in enquiries, there have been no reported cancellations so far.
EaseMyTrip has taken a step further by suspending flight bookings from India to the Maldives. While no Indian airline has canceled flights to the Maldives amid the ongoing row, the potential impact on tourism revenue, primarily driven by Indian visitors, could be substantial if the situation escalates further.
According to various reports, Indian residents constituted 11.2% of the total tourist arrivals in the Maldives in 2023, making them the largest group. However, the recent controversy has the potential to alter this trend, impacting the tourism industry in the Maldives significantly.
As India drove $380 million worth of tourism to the Maldives last year, any intensification of the #BoycottMaldives campaign may result in substantial losses for the island nation.
