Behind Muizzu’s Maldives Invite to Indians: Declining Tourism Revenue and Numbers

On Monday, during a joint press briefing with Indian Prime Minister Narendra Modi, Maldives President Mohamed Muizzu made a direct appeal to Indian tourists, urging them to visit the Maldives. “India is one of our largest tourism source markets, and we hope to welcome more Indian tourists to the Maldives,” Muizzu stated. This open invitation reflects the growing importance of Indian tourism for the island nation’s economy, particularly amidst a recent decline in arrivals.

Muizzu also highlighted the close relationship between the two nations, noting that many Maldivians visit India for tourism, medical care, and education, while a significant number of Indians contribute to the Maldives’ development. This statement comes at a crucial time for the Maldives, where tourism accounts for nearly 30% of GDP and over 60% of foreign currency earnings.

The Decline in Indian Tourists and Its Economic Impact

Over the past year, there has been a noticeable drop in Indian tourist arrivals to the Maldives, significantly affecting the nation’s tourism-driven economy. Industry estimates suggest a loss of about $60 million in earnings. The decline is partly attributed to the Lakshadweep-Maldives controversy, which strained diplomatic ties between the two nations. Notably, India is not just a key market during the Maldives’ peak season, when European tourists flock to the islands, but also a crucial revenue source during the off-season.

Maldives Tourism Minister Ibrahim Faisal acknowledged the importance of Indian tourism during his recent roadshow in India, titled “Welcome India.” Faisal candidly stated that the Maldives’ economy heavily relies on Indian tourists, offering a stark contrast to the “India Out” campaign that Muizzu had supported during his election campaign in November last year.

Political Controversy and a Shift in Policy

Muizzu’s call to Indian tourists marks a significant policy shift in the wake of an economic downturn, which was compounded by political controversies involving his ministers. Following derogatory comments made by three deputy ministers about India’s tourism expansion in Lakshadweep, there was public outrage, and thousands of Indian tourists cancelled their trips to the Maldives. This controversy led the Maldives Foreign Ministry to clarify that the ministers’ remarks did not reflect the government’s official stance. The impact of this diplomatic strain was evident as India fell from being the Maldives’ top tourism market in 2023 to sixth place by July 2024, with tourist numbers dropping by 42.5%.

Muizzu’s invitation to Indian tourists, his first public statement following the controversy, is viewed as a crucial step in mending relations and boosting tourism at a time when the Maldives is grappling with an economic crisis.

Steps to Attract Indian Tourists

To facilitate Indian tourists’ visits, a key initiative was launched during the meeting between PM Modi and President Muizzu — the RuPay card, which will simplify transactions for Indian visitors in the Maldives. This is expected to make travel more convenient for Indians and potentially revive the flow of tourists from India, which had seen a steep decline. India was the largest source market for Maldives tourism in 2023, accounting for over 11% of the 1.8 million tourist arrivals, but by mid-2024, Indian tourist numbers had fallen dramatically.

In addition to the diplomatic efforts, the reopening of travel bookings to the Maldives by Indian travel company EaseMyTrip signals a positive shift. The company had previously suspended bookings indefinitely following the Lakshadweep controversy but resumed bookings as Muizzu’s India visit was announced, marking a potential rebound in Indian tourist arrivals.

As the Maldives seeks to recover from the economic impact of the declining tourism numbers, President Muizzu’s outreach to Indian tourists is a crucial part of the nation’s strategy to restore its tourism sector and, by extension, its broader economy.

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