India-Maldives diplomatic row escalates, trade, industry bodies call for boycott of business dealings

The Maldives-India row escalated on Monday with high level diplomatic meetings taking place in the two countries on the issue, while some domestic travel industry players rushed to suspend bookings to the favoured tourist destination.

Indian trade bodies stepped in, calling for boycott of business dealings with Maldivian entities while popular film stars and cricketers waded into the high-pitched social media campaign where users claimed they have cancelled bookings for Maldives. Some travel industry players said they had seen a surge in enquiries for Lakshadweep and also pitched for promotion of the Indian islands and making it more accessible as an alternative tourist destination.

The Maldivian Government informed India’s High Commissioner Munu Muhawar that the derogatory remarks made by three deputy ministers, who have since been suspended, against Prime Minister Narendra Modi do not represent its views. The Indian High Commissioner had an arranged meeting with Ali Naseer Mohamed, the Ambassador-at-Large at the Foreign Ministry on Monday. This meeting came after India reportedly summoned the Maldivian envoy Ibrahim Saheeb to the External Affairs Ministry and conveyed strong concern over remarks posted on social media against the Indian PM by three ministers of the Maldives Government.

The row was triggered after derogatory remarks were made by some ministers of Maldives against PM Modi after he posted a video of him on a beach in Lakshadweep. The three Maldives ministers were suspended on Sunday. Maldives is one of the top tourist destinations for Indians.

Travel demand hit

The strong official response was coupled by matching sentiment from the travel industry. Prashant Pitti, Co-Founder, EaseMyTrip, said, “We’ve suspended Maldives flight bookings in support of the government, impacting 2.4 lakh annual bookings made through our platform. In fact, bookings surged by approx 40 per cent last year compared with previous year. However, we have introduced Lakshadweep as our premier destination, on par with international favourites and wish to enter into an alliance with Lakshadweep Tourism to promote the destination.”

A Delhi-based travel agent, who did not wish to be identified, said, “Yes, people are cancelling the bookings to Maldives and looking for alternate destinations like Mauritius, besides other places.”

Subhash Goyal, Chairman, Expert Committee on Tourism & Aviation, Indian Chambers of Commerce, urged tourism trade associations to stop promoting Maldives in the view of anti-India feelings expressed by the Ministers of Maldives. He urged them to divert all such enquiries to Lakshadweep and Andaman & Nicobar Islands and other destinations that can be promoted in the Indian Ocean area.

Traders body CAIT urged traders and exporters to “refrain from conducting business dealings with the Maldives.” It appealed to traders to stand united in sending a strong message against such behavior by temporarily abstaining from trade engagements with the Maldives.

Other destinations

Industry players said they have been witnessing a surge in enquiries for Lakshadweep. In a social media post on Monday, MakeMyTrip said, “ We have observed a 3,400 per cent increase in on-platform searches for Lakshadweep ever since the Honorable PM’s visit. This interest in Indian beaches has inspired us to launch a ‘Beaches of India’ campaign.”

“FHRAI firmly believes that Hon’ble PM’s visit to Lakshadweep will catalyse substantial investments in infrastructure, connectivity and hospitality services, making the archipelago an accessible and coveted destination for global tourists,” said Pradeep Shetty, President, FHRAI.

Meanwhile, InsuranceDekho said it has ceased the issuance of travel insurance to Maldives-bound travellers on all its platforms, effective immediately. “We encourage travellers to explore our island treasures, such as the enchanting Lakshadweep, which beckons with unparalleled beauty and charm,” a spokesperson for InsuranceDekho added.

SHARE

Published on January 8, 2024