News DeskThe Maldives tourism industry is facing a significant downturn due to a sharp decline in Indian visitors, who have been a crucial source of growth in recent years, according to the latest government statistics.
From January to April 2023, the number of Indian tourists arriving in the Maldives dropped by 42%, to 42,627 from 73,785 during the same period the previous year—a decrease of 31,158 visitors.
With Indian tourists typically spending an average of $2,500 each in the country, excluding airfare, this decline has resulted in a $77.9 million shortfall for the country’s tourism economy in just the first four months of this year.
The Indian market had been growing rapidly, with arrivals surging 83% in 2019 to 166,030 visitors from 90,474 in 2018, thanks to improved air connectivity between the two countries, as revealed in the Tourism Ministry’s 2023 Statistical Yearbook. However, arrivals then dropped by 62% in 2020 to 62,960 due to the Covid-19 pandemic before rebounding 363% to 291,787 in 2021 as travel resumed.
Last year, the number of Indian tourists fell by 17% to 241,382, and 2023 saw a further 6.9% decline to 264,753.
The guesthouse and lower-tier resort segments, which are popular among Indian travelers and transit passengers who favored this market during the pandemic, have been hit hardest by the decline.
A key factor behind the slump is a political dispute with India, sparked by government officials mocking Indian leadership. This led to calls on Indian social media to boycott the Maldives as a tourist destination.
Some businesspeople with ties to the government, who declined to be named, have criticized President Dr. Mohamed Muizzu’s administration for not doing enough to resolve tensions with India, a crucial tourism partner. They argue that high-level intervention is critical, as Indians were among the top visitor sources before the pandemic, highlighting the significant economic stakes.
“We need the money that Indian tourists spend. When that revenue stream dries up, it’s not just businesses that suffer—it hurts the entire economy,” said a tour operator.
