Maldives tourism faced a loss of MVR 2 billion due to the language and policies of President Dr. Mohamed Muizzu and some of his deputy ministers, former Finance Minister Ibrahim Ameer has said.
Speaking at a press conference by the main opposition Maldivian Democratic Party (MDP) on Saturday about the state of the economy amid "suffocating" public finances, Amir said that the foreign policy pursued by President Muizzu and the deputy ministers had disrupted diplomatic relations.
Ameer was referring to President Muizzu’s hostile statements against neighbouring India and derogatory remarks by three deputy ministers who mocked Indian Prime Minister Narendra Modi.
In addition to President Muizzu, inflammatory statements against India were made openly by the Youth Ministry’s deputy ministers Malsha Shareef, Mariyam Shiuna and Mahzoom Majid. The three officials have now been suspended with pay for nearly six months.
After the mockery of India by senior government officials, Indian social media activists, Bollywood stars and other celebrities launched a strong campaign to boycott the Maldives.
Tourist arrivals have been declining as a consequence.
The number of Indian tourists who visited the Maldives as of June this year was 47,000 fewer than the same period last year, Ameer said. As a result, MVR 450 million was lost in tax revenue.
“And the tourism industry overall faced a loss of MVR 2.3 billion,” Ameer said.
The Indian market started expanding after the increase of direct flights to the Maldives in 2019, the 2023 yearbook released by the Tourism Ministry stated. Statistics show an 83 percent growth in the Indian market in 2019 alone.
In 2023, 264,753 Indian tourists visited the Maldives, down 6.9 percent from the previous year.
However, the Indian market has now shrunk and the entire tourism industry, in particular guesthouses, has felt adverse effects. In previous years, the Indian market kept up the occupancy of Maldivian resorts and guesthouses, tourism sector businesses said.
