The Maldives, a popular destination for sun-seekers and honeymooners, is facing a tourism crisis after a diplomatic spat with India, its largest source of visitors. The island nation’s president, Mohamed Muizzu, has appealed to China, its second-largest market, to send more tourists to boost its struggling economy.
The trouble started when some Maldivian ministers made derogatory remarks about Indian Prime Minister Narendra Modi on social media, calling him a “clown”, a “terrorist” and a “puppet of Israel”. The comments were in response to Modi’s post promoting tourism to the Indian island chain of Lakshadweep, which some Maldivians saw as a provocation.
The insults sparked outrage and boycott calls on Indian social media, leading to a spate of cancellation of reservations by Indian tourists. Some Indian celebrities and politicians also expressed dismay over the comments, citing India’s historically close ties with the Maldives.
The Maldivian government has since suspended the ministers and distanced itself from their remarks, saying they do not represent its views. It has also summoned the high commissioner of Maldives in India and assured that it values its friendship with India.
However, the damage has been done. The Maldives, which relies heavily on tourism for its revenue, is facing a huge loss of income and jobs. According to data released by the Maldives Tourism Ministry, India was the top source of tourists for the Maldives in 2023, with 209,198 arrivals, followed by Russia with 209,146 arrivals, and China with 187,118 arrivals.
In a bid to salvage the situation, Muizzu has turned to China, which has been increasing its influence and investment in the Maldives in recent years. On his five-day state visit to China, which began on Monday, Muizzu praised China’s Belt and Road Initiative projects, saying they have delivered the most significant infrastructure projects in Maldivian history. He also urged China to “intensify” efforts to send more tourists to his country, saying that China was its number one market before the Covid-19 pandemic.
Muizzu also sought Chinese investments for various projects, including the relocation of the Male Commercial Port, Velana International Airport development, construction of additional airports, and expansion of Special Economic Zones. He also highlighted the importance of the Free Trade Agreement with China, signed in 2014 but not implemented by the succeeding administration.
Muizzu’s appeal for more Chinese tourists coincided with the signing of a USD 50 million project to develop an integrated tourism zone in the Maldives. The project, which is expected to create 10,000 jobs, will include hotels, resorts, villas, shopping malls, entertainment facilities, and a marina.
The Maldives hopes that the project, along with other initiatives, will help diversify its tourism base and attract more visitors from China and other countries. However, some analysts have warned that the Maldives may be risking its sovereignty and security by becoming too dependent on China, which has been accused of engaging in debt-trap diplomacy and military expansionism in the region.
The Maldives also faces the challenge of balancing its relations with India, which considers the Indian Ocean as its strategic backyard and has been wary of China’s growing presence there. India has been a traditional ally and partner of the Maldives, providing economic and military assistance, as well as humanitarian aid during the Covid-19 crisis.
The Maldives will have to tread carefully to avoid further alienating India, while also maintaining its ties with China. The fate of its tourism industry, and its economy, may depend on it.