Modi and Muizzu Promote Maldives Tourism to Indian Market Amid Diplomatic Tensions

Prime Minister Narendra Modi and President Muizzu recently participated in a joint event where they witnessed a live transaction using the RuPay card in the Maldives. This initiative aims to facilitate payments for Indian tourists visiting the island nation, potentially boosting its tourism sector. During this event, President Muizzu made a direct appeal to Indian tourists, emphasizing India‘s role as one of the largest tourism source markets for the Maldives.

In a joint press briefing alongside Prime Minister Modi, President Muizzu encouraged Indian tourism, stating, “India is one of our largest tourism source markets and we hope to welcome more Indian tourists to the Maldives.” He also acknowledged the significant number of Maldivians who travel to India for various purposes, including tourism, medical needs, and education.

The tourism industry is pivotal to the Maldives’ economy. It directly contributes to approximately 30% of the GDP and generates more than 60% of foreign currency earnings. However, the past year’s decline in tourist arrivals from India, due in part to a diplomatic tension arising from a controversy involving the Lakshadweep Islands, has significantly affected the nation’s earnings. Industry estimates place these losses at about $60 million.

Previously, Maldives Tourism Minister Ibrahim Faisal asserted the importance of Indian tourists to their economy, especially during a roadshow in India titled “Welcome India.” His statements followed the fairly recent “India Out” campaign led by Muizzu before the Maldivian elections last November, which cast a shadow over India-Maldives tourism relations.

On the announcement of Muizzu’s visit to India, two of his ministers, Malsha Shareef and Mariyam Shiuna, resigned after initially being suspended for derogatory remarks against PM Modi. These resignations signal a potential diplomatic adjustment amid economic challenges in the Maldives.

The diplomatic controversies have had tangible impacts on tourism patterns. India, which was the primary source of tourists for the Maldives in 2023, dropped to the sixth position by July 2024, with traveler numbers down by 42.5% from the previous year. By contrast, China took the top spot as the source country with over 120,000 tourists in the first half of 2024.

Further complicating relations, three Maldivian deputy ministers had previously criticized India’s tourism expansion in Lakshadweep, leading to broader cancellations of planned tourist trips by Indian nationals. Subsequently, the Maldives Foreign Ministry clarified that such remarks did not reflect Male’s official stance.

India-based travel company EaseMyTrip had suspended travel bookings to the Maldives amid the Lakshadweep controversy but has since resumed them following Muizzu’s recent diplomatic outreach to India.