India-Maldives Dispute Impacts Tourism: Significant Drop in Tour Packages | Details Inside

The ongoing diplomatic row between India and the Maldives has led to a significant drop in tour packages to the island nation. One of India’s biggest online travel platforms, EaseMyTrip, has suspended bookings to the Maldives, and other tour operators and airlines have been urged to boycott travel to the country. The dispute began when officials in the Maldives called for India to remove its troops from the island nation, and tensions have been rising since a new leader came to power last September. The fallout from the dispute is threatening a key sector of the Maldives’ economy, which is heavily dependent on tourism.

As a result of the dispute, travel bookings to the Maldives have tumbled, and thousands of Indian travelers have canceled their trips. Some travel agents in India are canceling bookings to the Maldives, scrubbing their websites of its photos, and recommending travelers go to other destinations such as the Indian archipelago of Lakshadweep, the Andaman Islands, Nicobar Islands, or Sri Lanka instead. The dispute has thrust a global spotlight on the little-known Lakshadweep, which like the Maldives, is a scenic chain of sandy atolls, coral reefs, and crystalline water.

The Maldives is a preferred playground for India, and in 2023, more than one in 10 arrivals were from India, making it the country’s largest source market. However, more British travelers and nearly twice as many Italians have visited the Maldives compared to those from India. The absence of Indian tourists may cost the Maldives millions in tourism dollars.

The ongoing dispute has led to a significant drop in tour packages to the Maldives, and prices have dropped as a result. A three-day Maldives package tour from Hyderabad that would earlier cost around Rs 55,000 to Rs 70,000 now comes for just around Rs 45,000. Premium five-star packages that until recently went for Rs 2.5 lakh have now come under Rs 2 lakh. One-way flight tickets from Hyderabad to Male have come down from Rs 15,000 to Rs 12,000.

The ongoing dispute between India and the Maldives has had a significant impact on the tourism industry in the Maldives. The drop in tour packages and cancellations of trips by Indian travelers have led to a significant loss of revenue for the country. The dispute has also led to a spotlight on other destinations such as Lakshadweep, which may benefit from the absence of Indian tourists in the Maldives. The ongoing dispute highlights the importance of diplomacy in maintaining healthy relationships between countries and the impact that disputes can have on various sectors of the economy.