maldives tourism increase

Maldives anticipates robust tourism growth in 2024: MATATO reveals forecast

18 December, 2023

Maldives Association of Travel Agents and Tour Operators (MATATO) has unveiled its tourist arrival forecast for the year 2024, revealing a promising outlook for the tourism industry. According to MATATO’s comprehensive analysis of prevailing trends, the Maldives is expected to welcome a staggering 2.01 million tourists in 2024, marking a substantial 7.9% increase compared to the projected arrivals in 2023.

Several factors are set to propel the Maldives’ tourism sector to new heights in 2024:

• Resurgence of the Chinese Market:  The anticipated resurgence of the Chinese market is poised to be a pivotal factor driving increased tourism to the Maldives.
• Opening of New Tourist Establishments:  The introduction of new tourist establishments is expected to diversify offerings, attracting a broader range of visitors seeking unique and immersive experiences.
• Completion of Velana International Airport (VIA) Terminal:  The imminent completion of the new terminal at Velana International Airport will significantly enhance airport capacity, facilitating a larger influx of tourists.
• Sustained Demand for Luxury Travel:  The persistent demand for luxury travel experiences is projected to contribute significantly to the overall growth of the tourism industry.
• Rising Popularity for Destination Weddings and Honeymoons:  The Maldives’ increasing popularity as a destination for weddings and honeymoons is expected to be a driving force in attracting tourists seeking romantic and picturesque settings.

The forecast predicts the following regional distribution of tourist arrivals:

• Asia: 1.2 million arrivals (60%)
• Europe: 400,000 arrivals (20%)
• America: 200,000 arrivals (10%)
• Others: 210,000 arrivals (10%)

MATATO’s forecast is based on a meticulous analysis that draws from data over the past three years, the Airports Council International (ACI) 2024 forecast, the November forecast from the Finance Ministry of the Maldives, Booking.com Travel Predictions 2024, PwC’s latest UK consumer sentiment survey, and insights from an AI forecaster.

While the outlook is optimistic, potential risks include:

• Global Economic Downturn:  A global economic downturn could pose challenges to the anticipated growth.
• Rise in Travel Costs:  Escalating travel costs might impact the enthusiasm of potential travelers.
• Political Instability:  Ongoing political instability and conflicts globally could also influence the tourism industry.

The overall outlook for the Maldives’ tourism industry in 2024 is optimistic, with a strong surge in tourist arrivals expected. However, the industry stakeholders and authorities must remain vigilant, considering the potential risks that could influence the trajectory of the industry. The Maldives continues to position itself as a premier destination, offering a diverse range of experiences to cater to the evolving preferences of global travelers.

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Maldives tourism in 2024: Significant growth in early days

In early 2024, the Maldives reported a 6.4% increase in tourist arrivals, with Russia, Italy, India, the UK, and Germany as top contributors, underscoring its global appeal and robust tourism infrastructure.

The Maldives has kicked off 2024 with a notable increase in tourism, as reported by the Ministry of Tourism . In the first nine days of the year, the island nation welcomed 50,983 tourists , marking a 6.4% rise compared to the same period in 2023. This growth is a continuation of the upward trend observed from 2022.

Leading Source Markets

The top contributor to this influx is Russia, with 7,601 tourists, closely followed by Italy at 7,204. Other significant sources include India, the United Kingdom, and Germany. The diversity of source markets highlights the global appeal of the Maldives as a premier tourist destination.

Tourism Infrastructure

The Maldives’ robust tourism infrastructure plays a critical role in accommodating this growth. With 1,140 tourist establishments, including resorts, hotels, guesthouses, and liveaboards, the country offers a combined capacity of 61,273 beds. This infrastructure ensures a high-quality experience for a broad range of travelers.

Peak Travel Days

A noteworthy aspect of this period was January 2nd, which saw the highest number of arrivals – 6,640 tourists in a single day. On average, the Maldives has been hosting 5,665 visitors daily, with tourists typically staying for about 8.1 days.

Implications for the Tourism Industry

This positive start to 2024 is significant for travel and hospitality professionals focusing on the Maldives. The sustained interest from a diverse international market presents opportunities for tailored marketing strategies and service offerings. The Maldives continues to cement its position as a sought-after destination, promising a prosperous year for its tourism sector.

The sustained growth in tourist arrivals in the Maldives signals a robust year ahead for the travel and hospitality industry, emphasizing the need for continued innovation and quality service to cater to a diverse and growing international market.

George Diamantopoulos

George, in his capacity as an intern, diligently oversees the flow of news, assists in the publication of content, and delves into the strategies of social media distribution. He is currently pursuing his studies in Business Administration at the Athens University of Economics and Business.

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Maldives Anticipates Tourism Boom with 2 Million Visitors in 2024

Monday 18th of december 2023.

In a promising outlook for the Maldives, the Maldives Association of Travel Agents and Tour Operators (MATATO) forecasts a robust growth in tourism, with a record-breaking 2.01 million visitors expected in 2024, marking a 7.9% increase from this year's anticipated arrivals.

Key Drivers for Growth:

Several factors contribute to this optimistic projection:

Resurgent Chinese Market: With borders reopening and travel restrictions easing, a significant influx of Chinese tourists is expected, breathing new life into the sector.

New Tourist Delights: Ongoing expansion with new resorts, attractions, and experiences aims to cater to a diverse range of visitors.

Smoother Skies Ahead: The completion of Velana International Airport’s new terminal will enhance capacity, facilitating easier access to the paradise islands.

Luxury's Allure: The Maldives' reputation as a premier luxury destination remains strong, attracting high-spending travelers seeking unforgettable experiences.

Weddings and Honeymoons: The romantic charm of the Maldives continues to draw couples seeking picture-perfect wedding and honeymoon destinations.

Geographical Trends:

Asia is expected to lead the tourist influx, accounting for 60% of arrivals, showcasing the Maldives' diverse appeal. Europe, America, and other regions are also anticipated to contribute significantly.

While MATATO's forecast is optimistic, it acknowledges potential risks such as a global economic downturn, rising travel costs, and political instability that could affect the outlook. The forecast is based on a meticulous analysis, incorporating data from past tourism trends, industry forecasts, consumer sentiment surveys, and advanced AI technology.

With its natural beauty, luxurious offerings, and strategic initiatives, the Maldives is well-positioned to welcome a record number of visitors in 2024, solidifying its status as a dream destination for discerning travelers.

Maldives anticipates robust tourism growth in 2024: MATATO reveals forecast

Maldives Association of Travel Agents and Tour Operators (MATATO) has unveiled its tourist arrival forecast for the year 2024, revealing a promising outlook for the tourism industry. According to MATATO’s comprehensive analysis of prevailing trends, the Maldives is expected to welcome a staggering 2.01 million tourists in 2024, marking a substantial 7.9% increase compared to the projected arrivals in 2023.

Several factors are set to propel the Maldives’ tourism sector to new heights in 2024:

• Resurgence of the Chinese Market: The anticipated resurgence of the Chinese market is poised to be a pivotal factor driving increased tourism to the Maldives.
• Opening of New Tourist Establishments: The introduction of new tourist establishments is expected to diversify offerings, attracting a broader range of visitors seeking unique and immersive experiences.
• Completion of Velana International Airport (VIA) Terminal: The imminent completion of the new terminal at Velana International Airport will significantly enhance airport capacity, facilitating a larger influx of tourists.
• Sustained Demand for Luxury Travel: The persistent demand for luxury travel experiences is projected to contribute significantly to the overall growth of the tourism industry.
• Rising Popularity for Destination Weddings and Honeymoons: The Maldives’ increasing popularity as a destination for weddings and honeymoons is expected to be a driving force in attracting tourists seeking romantic and picturesque settings.

The forecast predicts the following regional distribution of tourist arrivals:

• Asia: 1.2 million arrivals (60%)
• Europe: 400,000 arrivals (20%)
• America: 200,000 arrivals (10%)
• Others: 210,000 arrivals (10%)

MATATO’s forecast is based on a meticulous analysis that draws from data over the past three years, the Airports Council International (ACI) 2024 forecast, the November forecast from the Finance Ministry of the Maldives, Booking.com Travel Predictions 2024, PwC’s latest UK consumer sentiment survey, and insights from an AI forecaster.

While the outlook is optimistic, potential risks include:

• Global Economic Downturn: A global economic downturn could pose challenges to the anticipated growth.
• Rise in Travel Costs: Escalating travel costs might impact the enthusiasm of potential travelers.
• Political Instability: Ongoing political instability and conflicts globally could also influence the tourism industry.

The overall outlook for the Maldives’ tourism industry in 2024 is optimistic, with a strong surge in tourist arrivals expected. However, the industry stakeholders and authorities must remain vigilant, considering the potential risks that could influence the trajectory of the industry. The Maldives continues to position itself as a premier destination, offering a diverse range of experiences to cater to the evolving preferences of global travelers.

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The World Bank In Maldives

A partner of the World Bank since 1978, Maldives has been a development success story of sustained growth and impressive improvements in health and education. The country faces a number of environmental, climate, and inclusion challenges that we're working together to help address.

• Country Context

At a Glance

Maldives, a country of around 550,000 people dispersed across 185 islands, is an upper-middle-income country with a robust growth trajectory. The economy has maintained its strong growth momentum in 2023 due to rising tourist arrivals, and, with rising tourist arrivals, is expected to maintain a strong growth and poverty reduction trajectory. Overall, sustained growth performance in the last decade has significantly reduced poverty, and Maldives performs well on poverty outcomes compared to its regional, income, and small island peers. The economy is heavily dependent on tourism which has been the main driver of economic growth in Maldives and the dependence on tourism makes the country highly vulnerable to macroeconomic and external shocks. Commodity price volatility is exerting pressure on external and fiscal balances, through costlier imports and higher subsidies. In addition, existing high debt stock of the public sector, elevated levels of spending the government’s aim to undertake sizeable infrastructure investments through external non-concessional borrowing, and the presence of blanket subsidies for major consumption items have led Maldives to be exposed to elevated fiscal vulnerabilities. Public debt is expected to remain high, warranting continued efforts to reduce fiscal deficits, including comprehensive subsidy and public investment management reforms while mitigating impacts on the vulnerable.

Key Conditions and Challenges

Tourism, which accounts for almost one-third of the economy, has maintained its robust growth performance in the first half of 2023. Despite the Russian invasion of Ukraine, arrivals from Russia remain strong. An earlier-than-expected reopening of the Chinese market in January has compensated for fewer tourists from India and Gulf countries, while arrivals from Europe remained high. This supported employment opportunities, which are particularly important for the poorest. However, heavy reliance on tourism and limited sectoral diversification remain key structural challenges as Maldives is highly vulnerable to macroeconomic shocks.

As an economy that is heavily import-dependent, Maldives is facing significant external and inflationary pressures due to the sharp rise in global commodity prices. This is negatively affecting public finances given the government’s blanket provision of subsidies to help contain domestic price increases. This is further compounded by continued high capital expenditure and public debt, an increasing wage bill, and a costly health insurance scheme. Targeted austerity measures could mitigate risks to vulnerable households, particularly in the atolls, where 93 percent of the poor live, as past welfare gains have been driven by a strong redistributive model. The latter includes universal access to basic health and education services, pensions, health insurance, and income support programs – which contribute to a larger share of income for poorer households. Additional challenges to welfare include differential access to economic opportunities in Male relative to atolls – mirrored by a higher Gini index over the whole population (29.3) than within Male (25.2), higher vulnerability among the self-employed, and overcrowding affecting poorer urban households.

To promote development, Maldives has scaled up infrastructure investments since 2016. Although these investments have contributed towards growth and better living standards, financing of these large investments through non-concessional sources has led to growing debt vulnerabilities. Despite an increased cost of external borrowing, the government continued to use foreign financing for infrastructure investments in 2023, while also relying on domestic borrowing to support recurrent spending. This has led to a concerning rise in the financial sector exposure to the sovereign. The debt stock and debt servicing risks are expected to remain high in the medium term.

Recent Economic Developments

The economic growth, in real terms, was 13.9 percent (y-o-y) in 2022, followed by a 5.5 percent (y-o-y) in Q12023. The robust growth performance has led to a higher income than the pre-pandemic level, translating into projected poverty rates below 2019 levels Tourist arrivals reached 1.2 million by August 2023 and are projected at 1.9 million in 2023 – 13.8 percent higher than in 2022. However, along with the Goods and Services Tax (GST) increase in January 2023, higher global commodity prices led to rising domestic inflation, which reached an average of 3.5 percent (y-o-y) in H12023 – higher than the historical average of 0.5 percent. Price increases were particularly acute in the food -climbing to 8.0 percent in March before falling to 4.5 percent in June-, transport, health, and restaurant services sectors.

Despite growth in tourism earnings, the current account deficit doubled to 16.5 percent of GDP in 2022, due to far costlier oil imports and capital imports for large investment projects. High import costs and external debt repayments put significant pressure on gross reserves, which fell from US$790 million in January to US$594.1 million in July (from 2.8 to 2.0 months of imports).

Public finances remain under pressure. Given subsidy reforms were not implemented and capital spending cuts have not happened – both of which were proposed in the 2023 Budget – spending rose in 2023. However, this was somewhat offset by higher tax collections owing to the robust growth and increased tourism GST. Consequently, the 12-month rolling fiscal deficit declined in May to an estimated level of around 11 percent of GDP compared to 14.2 percent in 2022. MMA’s asset exposure to government further rose to 52 percent of its total financial assets at mid-2023, from 47.3 percent in 2022.

Outlook, Risks, and Challenges

The economy is projected to grow by 5.6 percent on average in the medium-term, supported by robust tourism performance. The return of Chinese tourists, together with increasing arrivals from new and existing markets are expected to lead to sustained growth. Tourism will further be supported by the expansion of Velana International Airport (planned to be completed by 2025), a diversified tourism sector, and investments in new resorts.  

Despite the recent increase in GST collections, in the absence of fiscal reforms, any meaningful improvement in the fiscal balance will be offset by continued high levels of spending. Public debt will, therefore, remain high. A larger fiscal adjustment is required to build external buffers and reduce fiscal vulnerabilities, including reducing spending on untargeted subsidies and bulk procurement for pharmaceutical purchases, and more effective public investment management. Better targeted transfers – including redirecting inefficiently allocated resources– would help mitigate the negative impacts of subsidy reforms on the poor.

High levels of consumption, elevated global commodity prices, and the GST rate hike are projected to keep inflation above the historical average in the medium term. Without targeted support, higher prices passed onto households could worsen the poverty outlook. Therefore, future subsidy reforms need to be carefully designed to minimize welfare risks.

The current account deficit is expected to remain elevated. High commodity prices and necessary capital imports driven by the government’s ambition to complete ongoing and planned infrastructure projects and commence projects in outer Atolls are expected to lead to a high current account deficit over the medium-term. Volatile oil prices and rising external financing needs – including debt servicing – are expected to sustain pressure on official reserves.

Downside risks persist. Tourism could be adversely impacted by an extended global slowdown. Any further widening of current account deficit could put additional pressure on reserves. Government faces external debt servicing payments of US$570 million on average over the next two years amidst tighter global financing conditions. On the upside, the global tourism sector outlook is robust, and with strong economic growth, poverty rates are expected to decline.

Reforms are needed to improve the fiscal outlook and ensure debt sustainability. More effective revenue mobilization measures, coupled with reforms to Aasandha national health insurance scheme and existing subsidy programs, and better investment management are critical to bring down the high level of public debt, replenish fiscal buffers against future shocks, and lower the cost of growth-enhancing investments, especially with large debt service obligations coming due in 2026.

Last Updated: Oct 04, 2023

World Bank Program in Maldives

Maldives became a member of the World Bank in 1978 and has enjoyed a trusted partnership with the institution over the past 44 years. Working together, the country has implemented various projects in support across many development areas.

Maldives has an active portfolio of 12 projects – 11 International Development Agency (IDA) projects, 1 IDA guarantee and 1 regional project – with a total net commitment of $258 million. The projects are focused on fisheries, solid waste management, renewable energy, employment and social protection, urban development, COVID-19 response, digital development, youth resilience, health systems, and financial management.

The World Bank also provides analytical support in macro monitoring and analysis, financial sector, youth and gender, health financing, social protection, and poverty.

The World Bank’s new Country Partnership Framework (2023-2027), adopted in January 2023, aims to help the Maldives navigate through risks and vulnerabilities to reach a greener, more resilient, and inclusive high-growth future. Under the new CPF, the World Bank’s engagement with the Maldives focuses on improving resilience to shocks, increasing access to economic opportunities, and improving human capital outcomes. Deepening the digital economy, to accelerate economic transformation, is also a cross cutting theme.

IFC Collaboration

Maldives joined the International Finance Corporation (IFC), in 1983. Since then, IFC has invested nearly $250 million. Currently, the portfolio in Maldives is $53 million with commitments in Dhiraagu, Bank of Maldives (BML) and Housing Development Finance Corporation (HDFC). 

In response to the COVID-19 crisis and in line with its strategic priorities in Maldives, IFC had pivoted resources to support key sectors adversely impacted by the pandemic. At the request of the Government, and in line with IFC’s countercyclical role, support to the Maldives with liquidity access was provided in the early stage of the pandemic. IFC’s investment of $50 million in BML provided financing for private sector companies and small and medium sized businesses in the tourism sector, to help preserve jobs and combat the negative shocks of COVID-19 on the economy. IFC also invested over $50 million directly in the tourism sector in FY20 via its investment in John Keels Holdings and $22.4 million through the Crescent Fund in FY23. Further, a $35 million landmark investment in Dhiraagu (in FY22/23), the largest telecommunications and digital service provider in the country, is helping Maldives digitize faster.

IFC’s strategy for FY21-25 in Maldives revolves around 3 pillars: sustainability, inclusion, and connectivity anchored by the tourism sector. IFC is committed to helping the Maldives achieve its ambitious target of net-zero emissions by the year 2030 through sustainable growth by increasing the use of renewable energy, further greening resorts, building climate resilient infrastructure, and enhancing sustainable waste management. Physical and digital connectivity also remain key strategic priorities along with accelerating SOE reforms. Achieving these strategic priorities will require close collaboration with the World Bank. IFC is also actively seeking to partner with other DFI’s, specifically to mobilize financing to further strengthen the Maldivian economy.

Supporting COVID-19 response:  The  COVID-19 Emergency Response and Health Systems Preparedness Project continues to support the Government in early detection, contact tracing, quarantine and isolation, and case management, while strengthening health systems to better respond to potential health crises.

Accelerating clean energy transition: The Accelerating Sustainable Private Investment in Renewable Energy (ASPIRE) and Accelerating Renewable Energy Integration and Sustainable Energy (ARISE) projects are pivotal in driving energy sustainability in the Maldives. ASPIRE, launched in 2014, has successfully mobilized private sector investments in photovoltaic infrastructure, marking a significant financial influx. Expanding on this triumph, ARISE, initiated in 2021, incorporates IDA/MIGA guarantee mechanisms to scale renewable energy, storage, and grid upgrades. Together, the projects are poised to unlock substantial private sector funding, propelling the Maldives towards its renewable energy objectives while underlining the importance of well-designed projects in advancing sustainability.

Protecting natural resources and strengthening nature-based industries:  The World Bank's IDA support is helping island communities in enhancing local waste management, recycling, and re-use practices, including plastics. A new Transforming Fisheries Sector Management in South-West Indian Ocean Region and Maldives (TransFORM) Project will support improved biosecurity systems, decarbonization, improved implementation of management plans, and enhanced competitiveness and private sector participation for improving business climate in the fisheries sector. The Maldives Country Environmental Assessment (CEA), due for launch soon, will offer valuable insights into coastal resilience, sustainable development, and the tourism sector's environmental impact. Similarly, the Maldives Country Climate Development Report (CCDR) highlights the interconnection of climate change and development. It aims for completion within the next year, contributing to climate action and resilience building in the Maldives.

Preparing youth for the modern labor market: The Maldives Enhancing Employability and Resilience of Youth Project (MEERY) enhances the long-term capacity of the education and skills development, and entrepreneurship systems to produce new graduates in priority skills and fortify the resilience of youth to labor-market cycles. The Sustainable and Integrated Labor Services (SAILS) project aims to enhance the resilience and employability of Maldivian workers by establishing a comprehensive social insurance program and integrated labor market services.

Strengthening public financial management:  With the  Bank’s support , the Ministry of Finance has made considerable progress on improving transparency through making the budget and financial information available through an integrated financial management system.

Accelerating digital development: A new Digital Maldives for Adaptation, Decentralization and Diversification project is helping the government promote competition in the broadband market, modernize the national identification systems to facilitate online services and transactions, and improve climate-related data and analytics.

Strengthening the private sector and reforming SOEs: A new Maldives Competitiveness and Growth Project will help the government enhance private participation and critical reforms in selected SOEs and support the growth of private small and medium enterprises through increased access to commercial loans and technical support.

Maldives : Commitments by Fiscal Year (in millions of dollars)*

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Featured News January 5, 2023

An Overview of the Maldives Tourism Industry in 2022

As 2022 concluded, Maldives welcomed over 1.6 million tourists for the year, surpassing its tourist arrival targets despite the challenges faced due to the COVID-19 pandemic and recent geopolitical conflicts. 

The Maldives recorded its 1 millionth tourist arrival on 12th August 2022 and 1.6 millionth tourist arrival on 20th December 2022 reaching the yearly target. Tourist arrivals in 2022 indicate a rebound of Maldives tourism to the pre-pandemic level. 

In October 2022, Maldives also marked the highest number of tourist arrivals in a given month in the history of Maldivian tourism, a figure that had not been achieved even in the record-breaking year of 2019.

The tourist arrivals were recorded at 1,675,294 on 31st December 2022, and it is a 26.7% increase from the arrivals recorded in 2021. Tourist arrivals in 2022 however, show a slight decrease of 1.6% in comparison to the arrivals recorded during the same period in 2019. 

Daily arrivals during the year remained over 5,016 tourists with an average stay of 8 nights.

India remained the top market for Maldives tourism in 2022 dominating over 14% with 240,000 arrivals. Russia followed closely at second contributing 12.1% with more than 198,000 tourists. Third, comes the U.K, contributing 10.7% with over 177,000 arrivals. Other top markets include Germany, Italy, the U.S.A, France, Spain, South Korea and Switzerland respectively.

According to the latest annual statistics released by the Ministry of Tourism, a total of 1,208 tourist accommodation facilities were in operation till 31st December 2022 including resorts, marinas, guesthouses, safari vessels and hotels. The total operating capacity was recorded as 59, 657 beds. 

Maldives once again secured the title of the World’s Leading Destination (among several other accolades) at the 2022 World Travel Awards, globally recognised as the hallmark of industry excellence. This is the third consecutive year that the Maldives had successfully earned this prestigious title, a shining testimony of the trust placed in the ‘magic of Maldivian hospitality’ by travellers from all over the globe.

As per the growth in arrivals in 2022, Maldives is expected to welcome 2 million tourists this year. Tourism Minister Dr Abdulla Mausoom stated that the goal is to have over 2 million tourist arrivals and 14.5 million bed nights for the year 2023.

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Maldives Fifth Tourism Master Plan 2023-2027.

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Maldives challenged with 51% destination occupancy and a $160 Million tourism revenue drop in 2023, despite increased visitor arrivals, reports MATATO

November 9, 2023 | News | IMTM

Male’ Maldives, 9th November 2023  – The Maldives Association of Travel Agents and Tour Operators (MATATO) has released a comprehensive report shedding light on the challenges that the Maldives’ tourism sector has encountered in 2023. Despite a surge in visitor arrivals, the industry has been grappling with significant obstacles that have impacted key performance indicators and revenue.

Key Findings

MATATO’s latest report indicates several key findings:

Occupancy Rates: The report reveals that only 51% of the available beds in the Maldives were occupied in 2023, despite the country’s total operational capacity of 62,822 beds as of November 1, 2023. This has led to a concerning underutilization of resources.

Decreased Length of Stay: Tourists in the Maldives have reduced their average length of stay from 8.1 days in 2022 to 7.6 days in 2023. This shift towards shorter trips raises concerns about the critical Revenue per Available Room (RevPAR), which is a vital indicator of the tourism sector’s performance.

Revenue Decline: MATATO highlights a significant drop in tourist revenue over the first eight months of 2023. According to data from the Maldives Monetary Authority (MMA), tourist earnings during this period totaled $2.6 billion (MVR 40 billion), marking a decline of $160 million (MVR 2.5 billion) compared to the same period in the previous year, representing a five percent decrease.

Behind the Numbers

Despite welcoming 1.2 million tourists during this period, an increase from the previous year, the primary driver of the revenue decline has been the substantial reduction in room rates at resorts and guesthouses. The Maldives’ tourism sector has also faced challenges related to the duration of tourists’ stays and occupancy rates. The occupancy rate fell below 50 percent for more than four months this year, in contrast to just three months last year.

These challenges underscore the complex environment that the Maldives’ tourism sector confronts. The market dynamics have been shifting, and competition has intensified. Traveler preferences have evolved, demanding a need for adaptation and innovation within the industry.

The restoration and strengthening of revenue need to remain a primary focus for the nation’s tourism sector as it works to overcome these challenges. It is clear that the Maldives, known for its stunning natural beauty and world-renowned tourist destinations, must navigate the ever-changing tourism landscape to ensure its long-term success in this vital sector.

As 2023 progresses, industry stakeholders and policymakers will likely be closely monitoring these challenges and working to implement strategies to revitalize and sustain the Maldives’ tourism industry.

#iamwithIMTM #IMTM #imtmonline #maldives #maldivestourism #Maldivestourismindustry #maldivian #maldiviesnews #resorts #sunnysideoflife #tourism #Travelnews

Last modified: November 9, 2023

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International Maldives Travel Market

H. Rankokaa First Floor | [email protected]

International Maldives Travel Market 2023

Maldives Tries to Win Back Indian Tourists As Arrivals Fall 40%

Peden Doma Bhutia , Skift

April 16th, 2024 at 9:11 AM EDT

While Maldives enjoys record-breaking arrivals, its tourism companies aren't about to let the Indian market keep falling. They're on a mission to reverse the trend.

Peden Doma Bhutia

The Maldives Association of Travel Agents and Tour Operators is determined to increase Indian arrivals to the island destination and is taking steps to achieve this.

“Indian arrivals to the Maldives have gone down by almost 40%,” said Abdulla Ghiyas, the association’s president, in an exclusive interview with Skift.

In early January, #BoycottMaldives started trending in Indian social media following a diplomatic dispute between the two countries. Indians accused Maldivian politicians of making disparaging remarks against Prime Minister Narendra Modi.

As a result, India, which was the number 2 source market for Maldives, has now fallen to number 6 . India’s share of visitors had been almost 11% – it has shrunk to 5.6%.

Promotions in Indian Cities

Ghiyas said the association will be hosting roadshows in 3 Indian cities in July and confirmed to Skift that one of the cities would be Bengaluru.

The association also plans to engage with Indian social media influencers. “We also want to see how we can work with the tourism board in Maldives as we have partnered with them in the past as well. There are talks that the tourism board is also planning of doing something in India,” Ghiyas said.

At the July roadshows, he said he’s keen to look at cities that have direct connectivity with Maldives.

Ghiyas expressed a desire to have conducted the roadshow earlier, noting that May is when Indian outbound travel peaks. However, he mentioned plans for another round of roadshows towards the end of the year, aiming to include Tier 2 cities. “Even if they lack direct flights to the Maldives, these cities would represent an important market for us,” he said.

Maldives has so far received (from January 1-April 15) 693,867 tourists, up from 606,395 arrivals for the same period last year, as per the latest data from the Maldives tourism ministry.

China is the top source market for the island destination, followed by UK and Russia.

Between January 1-April 15, almost 39,000 Indians visited Maldives, a decline of almost 40%, compared to the 64,250 arrivals for the same period last year.

“We might not talk immediately about the growth scenario, but I would definitely like to see the 40% decline narrow down,” Ghiyas said.

Can’t Ignore India

While Maldives has experienced record-breaking tourism arrivals so far, Ghiyas said it still needs India. “There are properties and resorts that rely heavily on the Indian market, which have been severely affected. This will hurt us in the long term and that is why we have decided to engage with the India market.”

Aminath Suzan, CEO of Maldives Association of Travel Agents and Tour Operators, pointed to cultural ties, such as similarities in food, language, and pop culture. “We must ensure that unrelated matters do not negatively impact the bond, for which we have dedicated years and built this alliance.”

MATATO Meets with Indian High Commissioner to Foster Tourism Cooperation The Maldives Association of Travel Agents and Tour Operators (MATATO) engaged in a productive meeting with His Excellency Munu Mahawar, the Indian High Commissioner to the Maldives, to explore collaborative… pic.twitter.com/PNXiy3QdVz — MATATO – PATA Maldives Chapter (@matatoMV) April 9, 2024

The association members also recently met with Munu Mahawar, the Indian high commissioner in Maldives, to collaborate closely with his office to boost tourism initiatives.

Dubbing the meeting with Mahawar “positive,” Ghiyas said the high commission has offered assistance to the association. “Once we have a concrete plan, we will definitely follow up with the High Commission and share our plans.”

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Tags: asia monthly , china , india outbound , islands , maldives , social media , tourism marketing

Photo credit: Ritz Carlton Maldives Fari Islands. Fari Islands

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12% Surge in Maldives Tourist Arrivals 2023

Maldives witnessed an impressive upswing in tourist arrivals as 2023 drew to a close, with a 12% increase compared to the previous year, as reported by Maldives Immigration.

The Maldives, initially aiming to draw 1.8 million tourists in 2023, not only achieved but exceeded this target, hosting a total of 1,878,539 visitors.  Which is a substantial increase from the 1,675,303 tourists who visited in 2022.

Maldives welcomed an average of 6,280 tourists daily, with the busiest day hitting a peak of 8,054 visitors. Even on the calmest day, the country hosted 4,967 tourists, as per immigration statistics. December alone witnessed a robust tourism presence, with 194,691 tourists choosing Maldives as their holiday destination.

As the tourism sector continues to thrive, the government has set its sights on an ambitious goal for 2024, targeting 2 million tourists.

Currently, the Maldives boasts 1,145 operational tourist accommodations with a bed capacity exceeding 61,750. The tourism minister has announced plans to bring in 12 to 15 new resorts in the next year, enhancing the country’s tourism infrastructure.

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What will be the impact of current row on tourism in Maldives and Lakshadweep

Tourism statistics from the maldives and lakshadweep showcase distinct trends in visitor numbers over recent years.

Amid tensions arising from remarks by Maldivian politicians regarding PM Modi and his Lakshadweep visit, various entities including the Indian Chamber of Commerce’s Aviation and Tourism Committee, travel agency EaseMyTrip, the Israeli embassy, and numerous celebrities have aligned with the ‘Visit Lakshadweep’ campaign. Additionally, the travel body and EaseMyTrip have also advocated for a boycott of Maldives.

Chairman of ATC Subhash Goyal in an appeal made on Monday asked several tourism trade associations such as the Indian Association of Tour Operators (IATO), Travel Agents Association of India (TAAI), Travel Agents Federation of India (TAFI), Adventure Tour Operators Association of India (ATOAI), Association of Domestic Tour Operators (ADTOI) and MICE Agents to “stop promoting Maldives in view of the anti-India feelings expressed by the Ministers of Maldives.”

Goyal proposed alternative destinations like Lakshadweep, Andaman & Nicobar Islands, Sri Lanka, Mauritius, Bali, and Phuket, highlighting their attractiveness. He recommended that Indian carriers suspend Maldives operations, prioritizing the Udaan Scheme for Lakshadweep. He further urged the Federation of Hotel & Restaurant Associations of India(FHRAI) and the Hotel Association of India to “seriously look at investing in Lakshadweep Islands as in the future it will give better returns on investment than Maldives.”

Nishant Pitti, CEO of EaseMyTrip, declared on social media X (formerly Twitter), “In solidarity with our nation, @EaseMyTrip has suspended all Maldives flight bookings,” prompting the #BoycottMaldives trend as Indian travellers cancelled trips. The Israeli embassy also took to Twitter and affirmed their past involvement in Lakshadweep for a government-backed desalination project, expressing immediate readiness to resume work. Celebrities from the Indian film industry and sports also tweeted in support of the “Visit Lakshadweep” campaign to endorse the Indian island.

Data of tourists for Maldives and Lakshwadeep

Tourism statistics from the Maldives and Lakshadweep showcase distinct trends in visitor numbers over recent years. In the Maldives, Indian tourist arrivals displayed fluctuations but generally increased from 2017 to 2021, peaking at 290,920 visitors in 2020-2021 before slightly dropping to 241,369 in 2021-2022. India consistently held the largest market share in Maldives tourism since 2019. In contrast, Lakshadweep’s tourism figures fluctuated across foreign and domestic visitors. While domestic tourism showed consistent growth, reaching 18,590 in 2021-2022, foreign tourism remained limited, with only two visitors during the same period. This disparity in tourist numbers highlights a substantial contrast in the attractiveness and accessibility of these destinations, with the Maldives consistently drawing higher tourist volumes, notably from India, compared to the relatively modest tourist activity in Lakshadweep.

Problems with Lakshwadeep Tourism Infrastructure

Lakshadweep faces unique challenges regarding tourism infrastructure. Accessing the archipelago isn’t straightforward for tourists including Indian nationals. Air India operates daily flights from Kochi to Agatti, the main entry point. Alternatively, a cruise ship journey from Kochi can take up to 18 hours. Entry for Indian tourists requires a permit obtained through specified channels like SPORTS (Society for Promotion of Nature Tourism and Sports) and approved travel agents, alongside bookings at state-run hotels. The permit necessitates an email submission of specific documents like hotel bookings and valid identification (passport or Aadhar card). Foreigners can secure entry permits solely with an Indian tourist visa.

The island typically limits tourist stays to a maximum of 7 days, and visitors must be accompanied by local agents.

Internet connectivity is limited on the islands, with only BSNL offering service. Other cellular network data does not function, rendering digital payment methods impractical. Property ownership is restricted to Lakshadweep residents, barring “Non-Lakshadweep” individuals from purchasing property, contributing to the absence of standard resort chains on the islands.

Why could the boycott spell trouble for Lakshwadeep?

The Lakshadweep archipelago, housing approximately 65,000 residents across ten islands, faces controversy over a tourism project similar to the Maldivian model, initiated in 2021 under the Lakshadweep Development Authority Regulation. Despite criticism from locals and environmentalists over potential harm to the delicate coral ecosystem and local livelihoods, the administration proceeds with global tenders for constructing around 230 beach villas, 140 water villas, and a 370-room villa across Suheli, Minicoy, and Kadmat islands. This move bypasses the requirement for an Environment Impact Assessment (EIA) report, crucial for public scrutiny before such large-scale endeavours. The concerns about the project’s impact align with a 2021 study by researchers from the Indian Institute of Technology, Kharagpur, projecting substantial land loss (up to 60% along the shorelines of Kavaratti and Minicoy) by the century’s end. Furthermore, the 2014 Justice Raveendran Committee Report emphasised prioritising the protection of corals and ecosystems from human-induced threats like waste disposal, tourism, and sand mining.

Talking to HT on the development plans for Lakshwadeep, the tourism officer of Lakshwadeep Tourism Department, Imthias Mohammed TB said,” Connectivity is the main issue for enhancing tourist booking and tourist arrival in Lakshwadeep, we have only one flight service right now and it services only one area. If one more flight can be introduced, then connectivity and tourism can be sorted as the arrival rate of tourists per day will increase.”

Mohammed also talked about the focus on a cruise-based economy and said that the Lakshadweep administration actively seeks to increase cruise tourism. He said, “Cordelia Cruises comes to Agatti island every week and recently Costa Serene came and made three voyages. Silver Cloud Cruises has proposed to operate in Thinnakara and other islands. The proposal is underway and they're planning to finalise it in May 2024.”

Mohammed said that the island is focusing on a “day-based model” where tourists arrive in the morning, ranging from 300 to 1,400 visitors, engaging in island activities before returning to the ship by evening. This sustainable approach avoids straining the islands' capacity while boosting tourism revenue, benefiting locals and the economy. Self-help groups promote local products, and vehicle owners transport tourists. Plans for ecotourism projects, including beach and lagoon villas in Kadmah, Minicoy, and Suheli islands, are in progress, with the Indian Hotel Corporation Limited (IHCL) already tasked with their development.

Speaking on the environmental impact of increased tourism in the island, Rohan Arthur of the Nature Conservation Foundation said, "While the increased attention on Lakshadweep is very welcome, my hope is that it brings into the spotlight some of the key challenges the islands and her people face. It would give me the greatest satisfaction for responsible tourists to become ambassadors for the ecological integrity of Lakshadweep. It would be wonderful if by visiting these atolls, more citizens of India can learn of the dire state of Lakshadweep’s reefs and the impacts of climate change on the long-term survival of people on these islands. Our most recent published work shows that the protective function of the reef is unraveling in many places including the capital Kavaratti and unless we have an unambiguous plan for climate adaptation for these islands, their future is uncertain. If responsible tourists can lend a voice to these urgent needs, then the increased tourism can be a force for good. If they don’t, Lakshadweep will become yet another unkempt tourism destination, it will be an opportunity lost."

• Lakshadweep

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Facing dire sea level rise threat, Maldives turns to climate change solutions to survive

The islands could be 80% uninhabitable by 2050 at current global warming rates.

The Maldives are well known as a bucket list getaway. Hearing the country's name conjures up images of luxury huts overlooking an aqua blue ocean. But climate change may cross the country off the map completely.

The archipelago, which is made up of over 1,100 coral islands in the middle of the Indian Ocean, is the lowest lying nation in the world. Therefore, sea level rise caused by global climate change is an existential threat to the island nation. At the current rate of global warming, almost 80% of the Maldives could become uninhabitable by 2050, according to multiple reports from NASA and the U.S. Geological Survey.

"Our islands are slowly being inundated by the sea, one by one," Ibrahim Mohamed Solih, the president of the Maldives, told the U.N. Climate Change Conference, or COP26, earlier this week. "If we do not reverse this trend, the Maldives will cease to exist by the end of this century."

The islands that are home to local Maldivians, not the resort islands, stand to lose the most. Mohammed Nasheed, the former president of the Maldives and a leading voice for climate change equity, told ABC News that more than 90% of islands in the Maldives have severe erosion, and 97% of the country no longer has fresh groundwater.

Ibrahim Mubbasir and his family live on the island of Dhiffushi. It is suffering from severe erosion, and flooding has increased from two or three times a year to twice a month. Four years ago, the family's well became unusable because of salt water contamination, leaving them to rely on collecting rainwater. Mubbasir said they only have enough fresh water to last for three more months.

"Things that we thought would happen towards the end of the century, we are experiencing now," Aminath Shauna, the Maldives' minister of environment, climate change and technology, told ABC News' Ginger Zee.

Shauna said that more than 50% of the national budget is spent on adapting to climate change. When asked what the Maldives will look like in 2050, Shauna responded, "Are you willing to take the Maldives as climate refugees? I think that's the conversation that needs to happen."

And it's not just the Maldives. Island countries around the world have been asking developed nations for funds since 2009. Countries with the highest greenhouse gas emissions -- China, the United States and India -- are mostly responsible for the rapid sea level rise.

Maldives' coral reefs

At the center of the Maldives' culture are their coral reefs.

In 2016, the Maldives lost their front line of defense when a bleaching event affected about 60% of the coral reefs, according to Aya Naseem, a marine biologist and co-founder of the Maldives Coral Institute.

Without coral reefs, the islands are wide open to the rising waters. Naseem said they have one realistic choice: They need to build back and protect the reefs, "because IPCC (Intergovernmental Panel on Climate Change) is predicting that by 2050 if the temperature rises 1.5 degrees Celsius we can lose 70 to 90% of corals in the whole world."

Research has previously shown that a healthy coral reef can absorb 97% of wave energy, dramatically reducing erosion, and it's affordable, Naseem said.

"It's much cheaper than building a seawall. I think it costs something like $3,000 to grow a meter of sea wall where for the coral a meter of it is about $300, including monitoring and everything," she said.

Bebe Ahmed, founder of "Save the Beach," travels island to island in the Maldives with the mission of teaching kids about restoring and protecting coral. He told ABC News that his dream is to inspire young Maldivians to want to start their own projects to restore coral reefs.

MORE: COP26 updates: 'America showed up,' Biden says of time at summit

What's next in the fight?

Technology, like 3D-printed coral structures or a floating city, may have to be part of the solution.

The Maldives is home to the Modular Artificial Reef Structure, or MARS, a coral-forming project on the resort island of Summer Island. to the coral forming project, MARS. The project has 3D-printed bases that are placed in the water with transplant corals attached to them. The hope is that the system is designed with the specific needs of the coral farm in mind, providing a permanent structure for coral to grow.

In the late '90s, the Maldives began construction on the island of Hulhumale through the process of land reclamation. Hulhumale is 6.5 feet above sea level, more than double the height of Male, the current capital of the Maldives. It is possible this island may be a future site for relocation of Maldivians suffering from sea level rise. Maldivians call their manmade island the City of Hope.

The future of the Maldives could also come in the form of a floating city. In 2022, just a few miles from the dense, capital city of Male, construction and assembly will begin on the world's first true floating city. The unique solution will not have to worry about sea level rise, because it will always be on top of the sea.

The project is being developed and led by Dutch Docklands in the Netherlands. Lead architect Koen Olthuis gave ABC News an inside look at how the floating city is designed and what it should eventually look like.

MORE: India's addicted to coal. But for how much longer?: Reporter's Notebook

The floating city has a unique pattern, modeled after the brain, both human and coral.

The entire city will shift up and down on a pile drilled into the sea floor. It will also take advantage of its environment to better provide for those living on the floating city.

"By being on the water we want to take advantage of the water -- and using the coolness of the water -- so these are water-cooled cities, for which you take cool water outside the atoll and pump water through the route and activate the air conditioning systems," Olthius said.

Since the floating city is sustainable and leaves no footprint, Olthuis called the floating cities "scarless" and said they are "renting space from nature."

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The Most Important Markets for the Maldives Tourism Industry

Tourism & hospitality.

From newly elected Maldivian president Mohamed Muizzu planning for Indian military personnel to leave the island and government officials insulting Indian Prime Minister Narendra Modi on X/Twitter due to a perceived slight to the trending hashtag #BoycottMaldives: The relationship between the two nations seems to have taken a downward turn over the last couple of months. As our chart based on data by the Maldives Ministry of Tourism shows, India has been the biggest source of tourist influx in the past year.

Between January 1 and December 31 of 2023, 209,198 Indians visited the smallest country in Asia , comprised of 26 atolls and situated 750 kilometers from the Indian coast. Russia is second in terms of tourist visits to the Muslim-majority island republic, followed by China. The latter climbing 27 spots compared to 2022 can be seen as one symptom of the deepening economic and political ties between the Maldives and the People's Republic. Other relevant origin countries for tourists visiting the atolls are the United Kingdom, Italy and Germany.

The online spat between the Indian and Maldivian netizens already seems to have a palpable impact on tourism. As vice president and global head of marketing at the India-based travel software company Rategain, Ankit Chaturvedi, told CNBC on Tuesday: "We are seeing a 40 percent drop in bookings over the last two days. Most people book on weekends, and therefore the drop seems more significant because ideally [bookings] should have gone up." Tourism is an integral part of the Maldivian economy. The sector makes up more than one quarter of the island nation's economy, followed by fishing and shipping.

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Muizzu’s balancing act in the Maldives

Smruti S Pattanaik

The Maldives held its much-awaited parliamentary election on April 17. Not surprisingly, the People’s National Congress (PNC), along with its coalition parties, won 75 seats in total while the Maldives Democratic Party (MDP), the erstwhile ruling party’s strength in the Parliament, dwindled to only 12 seats from 65 seats previously held. The PNC alone won 66 seats, showing that the other parties in the coalition would play a marginal role.

This ‘supermajority’, as described by Maldivian media, will strengthen President Muizzu’s hand in charting policies without being obstructed by the opposition in Parliament. Meanwhile, his alliance partner, the People's National Front (PNF) president and former president of the Maldives, Abdullah Yameen, was freed from jail just two days before this election. Muizzu's victory would have several geopolitical implications as he charts his ultranationalist foreign policy.

Fallout with former ally

Muizzu’s fallout with Abdullah Yameen may not threaten his political sustenance; rather, the divided opposition is not in a position to pose much challenge to his policies. Though Muizzu was the contingency presidential candidate in case Yameen failed to contest due to his conviction, the Progressive Party of Maldives (PPM)-PNC coalition’s senate rallied behind Muizzu’s candidacy and rejected Yameen’s proposal to boycott the election. Since he was elected president, Muizzu has tried to sideline Yameen and has appointed a cabinet without consulting him, which deepened the rift between the two. Yameen’s loyalists accuse Muizzu of refusing to take phone calls from Yameen after his election.

After Muizzu was elected President, Yameen was transferred from the jail where he spent his days after being convicted of corruption charges to house arrest. However, his newly created party PNF, Democrats and Adhaalath Party (AP), could not win any seats in the parliamentary election. This is a serious blow to Yameen’s political aspirations.

Economic downturn

The debt situation has worsened in the country even though it has not reached the stage of bankruptcy. Muizzu has asked for development funds from China to anchor a pro-China foreign policy while requesting India to restructure debt repayment and stagger it to help the Maldives to repay commensurating with its economic ability and at the same time to continue with projects that have already been sanctioned by the government. Muizzu also wants to bolster the free trade agreement with China without assessing the impact on its economy in its bid to reaffirm the previous policy charted by former President Abdullah Yameen. This clearly shows that Muizzu would have to balance the country’s economic situation while looking for more loans to develop infrastructure projects essential for its economic growth.

China’s share of the Maldives’ debt is 37 percent. The International Monetary Fund has categorised the Maldives as a high-risk debt-distressed country. The World Bank has predicted 5.4 percent growth from 2024 to 2025. The country's debt vulnerability is pegged at 115 percent of the GDP , and its external and internal borrowing would make it financially vulnerable .

The Maldives imports essential commodities from India. Both countries are discussing introducing trade in local currency to address the dollar shortage. In July 2023, the Reserve Bank of India permitted the Maldives to open Special Rupee Vostro Accounts (SRVAs) to facilitate trade in local currencies . In April of this year, India’s Directorate General of Foreign Trade also removed the export curbs on onion, rice, sugar, wheat flour and stone aggregate for the country .

Like other South Asian countries, the Maldives’ tax revenue is very low. It depends on imports to sustain. According to the Asian Development Bank’s report, the outgoing Solih government's decision to increase the Goods and Services Tax rate by 40.0 percent for the general sector and 33.3 percent for the tourism sector has increased the price of essential commodities . Foreign exchange reserves have slumped. Subsidies have increased to provide economic relief.

Tourism booms

The tourism industry has grown significantly even though Indian tourist arrivals have declined. According to reports, Indians travel to the Maldives during the summer, which is a fill-up to the off-season tourism, as most Western tourists prefer to travel in winter . Indian tourists were the largest in 2023. The government has set the goal of achieving over 2 million tourist arrivals and 14.3 million bed nights for 2024 to generate revenue. This also requires huge investments and facilities to accommodate tourists and boost the local economy. In this context, reducing the number of Indian tourists arriving in the Maldives would be a major concern for the Maldivian government. Some estimate the loss to the Maldivian economy to be around $2.5-5.5 million after India dropped to fifth place in the Maldivian tourism chart.

In recent years, the Maldives has seen growth in the tourism sector, which is likely to generate revenue for the cash-strapped economy, boost GDP growth and create employment opportunities for the locals.

Geopolitical balancing

In the past few months after his election, Muizzu has also successfully replaced Indian military trainers with civilian trainers, which he can boast of as his foreign policy success. He has also managed to elevate the Maldives’ relations with China to a strategic level by signing the China-Maldives Comprehensive Strategic Cooperative Partnership (2024-28 ). They signed 20 agreements, some focusing on the defense sector. The political ecosystem would be conducive to Chinese investment as Beijing aspires to have a foothold in the Western Indian Ocean.

Several powers have hotly contested for influence in the Indian Ocean countries. However, this contest is seen as a binary in the Maldives—India vs China. Muizzu’s task will be to balance the interests of both countries and extract benefits for the Maldives. Given the economic situation of India and China and their investment in the Maldives, it would be difficult for Muizzu to play one against the other. Given the Maldives’ proclivity to play the China card as it did when Muizzu allowed the docking of Chinese Xiang Yang Hong 03 ‘research vessel’ ostensibly for replenishment, India has decided to build its own Naval base in Lakshadweep. Cooperation between India and the Maldives continues, as the trilateral India-Maldives-Sri Lanka trilateral Dosti-16 exercise took place in February. 

Smruti S Pattanaik Pattanaik is a research fellow at the Manohar Parrikar Institute for Defence Studies and Analyses, New Delhi, India.

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Indian tourists ditch Maldives amid row as numbers drop 40%; China arrivals up 200%

A report by the maldives' ministry of tourism showed that as many as 56,208 indian tourists had visited maldives between january and march 2023. this number declined to 34,847 in the january-march 2024 period..

The number of tourists from India to the Maldives declined by almost 40 per cent during the January-March 2024 period as compared to the data from the same period in 2023. At the same time, the total number of tourists from China shot up by over 200 per cent.

The Maldives' Ministry of Tourism released its monthly report on tourist arrivals recently. The data showed the tourist arrivals in the island nation between January and March this year.

ALSO READ: How did China strengthen its bond with Maldives amid India exit? 10 key collaborations between Male, Beijing

The report revealed that as many as 56,208 Indian tourists had visited Maldives between January and March 2023. This number declined to 34,847 in the January-March 2024 period. This was a 38 per cent decline from 2023.

Meanwhile, 17,691 tourists from China visited Maldives during January-March 2023. The tally rose to 67,399 during January-March 2024 — recording a spike of 281 per cent.

ALSO READ: Maldives snubs India over hydrographic survey deal after signing military pact with China

As per the latest data, India ranks sixth in the top 10 markets for Maldives tourism, while China ranks No. 1 with an 11 per cent share.

The data holds significance as India once used to be a significant and top-most contributor to the Maldive's tourism statistics. Indians were only second to Russia in the chart showing tourist arrivals in the Maldives by nationality in January-November 2023. The increase in arrivals from India started in 2020, as compared to that from China.

Before 2020, people from China were leading the tourism charts in the Maldives. In 2020, China had an 18.31 per cent share among ‘Top Ten Markets Arrivals’ in Maldives, the highest that year.

India dominated the Maldives tourism market until December last year. Its position started declining starting January 2 this year, when India ranked third among the top 10 countries that make up most of the Maldives' tourism market share. India's rank further plunged to fifth on January 21 and then to sixth on March 3.

Since then , China has steadily climbed the chart from 10th to the first spot.

India-Maldives row

The drop in tourists from India was seen soon after Prime Minister Narendra Modi attempted to promote Laskhwadeep as a tourist destination, triggering a row in the Maldives in the first week of January this year. Later, Maldives' President Mohamed Muizzu requested India to withdraw its troops stationed in the island nation.

The declining number of tourists from India and the subsequent increase in that from China is in line with Muizzu's policies and deals that seem to snub India and welcome China.

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Voting begins for Maldives Parliament, watched by India and China vying for control of Indian Ocean

A woman casts her vote at a polling station in Male, India, Sunday, April 21, 2024. Maldivians are voting in parliamentary elections, in a ballot crucial for President Mohamed Muizzu, whose policies are keenly watched by India and China as they vie for influence in the archipelago nation. (AP Photo/Mohamed Sharuhaan)

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MALE, Maldives (AP) — Maldivians voted in parliamentary elections Sunday, in a ballot crucial for President Mohamed Muizzu, whose policies are keenly watched by India and China as they vie for influence in the archipelago nation.

Both countries are seeking a foothold in the Maldives, which has a strategic location in the Indian Ocean.

Muizzu’s election as president last year sharpened the rivalry between India and China, with the new leader taking a pro-China stand and acting to remove Indian troops stationed on one of the country’s islets.

Securing a majority in Parliament will be tough for Muizzu because some of his allies have fallen out and more parties entered the race.

Six political parties and independent groups are fielding 368 candidates for 93 seats in Parliament. That is six more seats than the previous Parliament following adjustments for population growth.

About 284,000 people were eligible to vote and tentative results were expected to be announced late Sunday.

Muizzu’s election campaign theme for president was “India out,” accusing his predecessor of compromising national sovereignty by giving India too much influence.

At least 75 Indian military personnel were stationed in the Maldives and their known activities were operating two aircraft donated by India and assisting in the rescue of people stranded or faced with calamities at sea. Muizzu has taken steps to have civilians take over those activities.

Relations strained further when Indian social media activists started a boycott campaign of Maldives tourism. That was in retaliation for three Maldivian deputy ministers making derogatory statements about Indian Prime Minister Narendra Modi for raising the idea of promoting tourism in Lakshadweep, India’s own string of islands similar to the Maldives.

According to recent Maldives government statistics, the number of Indian tourists has fallen, dropping that country from being the top source of foreign visitors to No. 6.

Muizzu visited China earlier this year and negotiated an increase in the number of tourists and inbound flights from China.

In 2013, Maldives joined China’s “Belt and Road” initiative meant to build ports and highways to expand trade — and China’s influence — across Asia, Africa and Europe.

Maldives votes in parliamentary elections amid India-China rivalry

Vote is being keenly watched by India and China as they vie for influence in the island nation.

Polls have closed in the Maldives, where voters have cast their ballots in a parliamentary election crucial for President Mohamed Muizzu, who has taken a pro-China stand and turned the archipelago nation away from longtime ally India since coming to power last September.

The vote on Sunday is being keenly watched by India and China as they vie for influence in the island country, which is known for its pristine beaches and luxury resorts and is strategically located in the Indian Ocean, through which global east-west shipping lanes pass.

Keep reading

China, maldives upgrade ties with infrastructure deals in pivot from india, caught in india-maldives spat, lakshadweep islands want jobs, then tourists, ‘music to beijing’s ears’: has china won the maldives presidency, new maldives president promises to expel foreign military personnel.

About 284,000 people were eligible to vote in Sunday’s polls, and tentative results are expected later on the same day.

Six political parties and independent groups are fielding 368 candidates for 93 seats in the People’s Majilis, or parliament. Splits in all the main political groupings, including Muizzu’s People’s National Congress (PNC)-led ruling coalition and the opposition Maldivian Democratic Party (MDP), are expected to make it hard for any single party to win an outright majority.

Ali Nasser Mohamed, Maldives ambassador to the United Nations, told Al Jazeera that the government is confident of securing at least 90 percent of the seats in the parliament.

“The election is being held at an important point and is an important juncture for the president … This election is less about geopolitical rivalry in the Indian Ocean … and is more about the future of Maldives and the people. It is about creative stability, prosperity and resilience in the Maldives,” he said.

Muizzu won last year’s presidential polls on promises to cut off Indian influence with his “India out” campaign. He was widely seen as a proxy candidate for former President Abdulla Yameen, who held power between 2013 and 2018 and whose 11-year jail term on bribery charges was overturned by a court last week.

The two men have fallen out since Muizzu took office, and Yameen has set up a rival party, the People’s National Front (PNF), ahead of Sunday’s polls.

“This is perhaps the most difficult election to predict given the high degree of factionalisation, including in the ruling coalition,” said Azim Zahir, a lecturer and research fellow in international relations and politics at the University of Western Australia in Perth.

The opposition MDP, which swept the last parliamentary election in 2019, was “very cohesive and hence got super majority,” Zahir noted. “Still, I think the ruling coalition and the MDP will get most seats,” he said.

On the eve of the election, Muizzu – who has accused his immediate predecessor Mohammed Ibrahim Solih of compromising national sovereignty by giving India too much influence – appealed to voters to grant his coalition a majority in parliament to protect the country’s independence.

“All those who love our nation must make sure the decision they make tomorrow is one to secure our nation’s future,” he said. “The ballot you cast tomorrow must be for national sovereignty and for the protection of our nation.”

The incumbent leader highlighted his government’s efforts to deport some 75 Indian military personnel who are stationed in the Maldives, saying his party needed a majority in parliament to see its campaign promise through.

The known activities of the Indian military personnel were operating two aircraft donated by India and assisting in the rescue of people stranded or faced with calamities at sea. Muizzu wants to have civilians take over those activities.

The opposition, meanwhile, has portrayed Sunday’s election as a choice between autocracy and democracy.

Solih, the former president, appealed to voters at the MDP’s final campaign rally on Saturday to vote for the opposition to hold the government accountable.

“Tomorrow’s vote is about safeguarding the democracy that we have all fought so hard to establish here,” he told supporters ahead of the elections.

The current parliament, dominated by Solih’s MDP, has sought to stymie Muizzu’s efforts to realign the archipelago’s foreign policy.

Relations between India and the Maldives have also deteriorated after Indian social media activists started a boycott campaign of Maldives tourism in January.

The move was in retaliation for three Maldivian deputy ministers making derogatory statements about Indian Prime Minister Narendra Modi for raising the idea of promoting tourism in Lakshadweep, India’s string of islands similar to the Maldives.

According to recent Maldives government statistics, the number of Indian tourists has fallen, dropping that country from being the top source of foreign visitors to the sixth.

Muizzu visited China earlier this year and negotiated an increase in the number of tourists and inbound flights from China. His government has also awarded high-profile infrastructure contracts to Chinese state-owned companies.

In 2013, Maldives joined China’s Belt and Road Initiative meant to build ports and highways to expand trade – and China’s influence – across Asia, Africa and Europe.

The Maldives consists of about 1,200 coral islands and atolls and has a population of about 520,000.