Rebooting Paradise Inc: Why Modi's Visit Is A Booster Shot For Maldives
The Maldives — archipelago, paradise, icon of luxury. For decades, its white sands and turquoise lagoons have lured the world's travellers, with Indian tourists forming the foundation of its post-pandemic boom. Yet, not very long ago, a diplomatic spat with India threatened to unravel its greatest success story. As Prime Minister Narendra Modi sets foot on Maldivian soil now, the entire region watches: can this reset patch up old wounds and bring back the lifeblood of Maldivian prosperity?
The Shadow of a Spat
The economic importance of tourism to the Maldives is almost impossible to overstate. It accounts for more than a quarter of GDP and underpins livelihoods for tens of thousands. In recent years, Indian tourists—who overtook even the Chinese in arrival numbers – were the engine of the industry. But at the start of 2024, that engine sputtered.
What sparked the downturn? Sometimes, all it takes is a tweetstorm. After PM Modi visited Lakshadweep – India's own picture-perfect islands – Maldivian officials responded with a cascade of undiplomatic remarks, some laced with insult. The reaction in India was swift and nationwide. Major travel sites suspended bookings. Indian celebrities, travel influencers and ordinary citizens alike amplified a call for a #BoycottMaldives campaign, redirecting attention – and crucially, holiday budgets – towards Lakshadweep and other domestic destinations.
This hit the Maldives where it hurt most. The Indian market, responsible for more than 200,000 annual visitors in 2023, suddenly dried up – arrivals plummeted, airlines dropped routes, and hoteliers stared at empty rooms.
Lakshadweep: A Strategic Counter and a Symbol
Modi's Lakshadweep sojourn was not merely a personal vacation but, in the context of the Maldives' then growing anti-India stance, a calculated signal. Lakshadweep, long overshadowed by the Maldives, was cast into the spotlight as a pristine and viable Indian alternative. PM Modi's enthusiastic social media posts and his government's investment in infrastructure and marketing underlined a new message: India had its own paradise to offer, and the nation's 1.4 billion people could do more with their wallets than just protest from the sidelines.
Travel tech giants like EaseMyTrip made symbolic—even patriotic—stands, halting bookings to the Maldives. In days, Lakshadweep saw a 3,400 per cent surge in travel searches, while local islands in the Maldives turned uncharacteristically quiet. Even India's trader community joined the boycott, pausing non-essential business with Maldivian partners.
Economic Fallout: A Case Study in Interdependence
For the Maldives, the episode underscored just how symbiotic its relationship with India had become. By mid-2024, Indian visitor numbers had nosedived, pushing India down to sixth place among the Maldives' tourism source markets. From almost 210,000 Indian arrivals in 2023, the numbers halved within months. For Maldivian resorts and guesthouse downturn meant anxious calls, abandoned tables, and, worst of all, discarded investment plans.
Tourism is deeply embedded in the Maldivian economy; shockwaves travel quickly. With revenues sagging, the government's ambitious economic targets started looking far-fetched. President Mohamed Muizzu, who had built his campaign on being more independent of India and closer to China, was forced into damage-control mode. Three ministers were suspended, and official apologies flew over the Indian Ocean, but the harm was already felt by thousands of local workers.
From 'India Out' to 'Welcome India': Why Modi's Visit Matters Now
PM Modi's state visit, the first such high-level engagement since the spat, comes with both symbolism and substance. Modi will be the guest of honour at the Maldives' 60th Independence Day, marking a powerful endorsement of the relationship's enduring value.
In the lead-up to the visit, both sides have showcased their willingness to recalibrate. The Maldivian tourism ministry launched the 'Welcome India" initiative, with new roadshows across Indian metros and airline partnerships to restore direct air links. Plans include appointing an Indian celebrity brand ambassador and developing new tourism products tailored to the Indian market.
Behind the scenes, trade, investment, and financial assistance from India have helped the Maldives avoid the worst, providing crucial balance-of-payments support and funding for major infrastructure. Former President Mohamed Nasheed's candid admission— 'If not for India, we would have gone default"—resonates with investors and policymakers, who know that stability is the foundation of prosperity in an island nation so exposed to global tides.
The Road Ahead: Confidence, Investment, and the Rebirth of Paradise
Rebooting the Maldives as 'Paradise Inc." after a bruising diplomatic row is no overnight task. Consumer confidence, once shaken, can take time to rebuild, especially in the fickle world of high-end tourism. Yet there are reasons for optimism:
top videos
View all
Recovery Signals: Travel companies have resumed Maldives bookings, and Indian arrivals are trending upwards again. The Maldivian government now targets 300,000 Indian tourists in 2025, a bold yet plausible aspiration if current trends hold.
Renewed Investment: Greater stability and better relations invariably mean a return of investor appetite. With Indian visitors returning, hotel groups, airlines, and allied businesses in both countries are showing renewed interest in capacity expansion and new partnerships.
Strategic Vision: Both nations appear ready to return to a mutually beneficial model, intertwining tourism with infrastructure development, blue economy projects, and regional security confidence.
The saga of the boycott reveals how quickly trust can be broken – and how hard it is to recapture. For the Maldives, it is a sobering reminder: the paradise economy floats on goodwill, not just turquoise tides. The quick diplomatic reset and Modi's visit are more than photo-ops; they represent a deliberate effort to reboot this trust. With investor confidence returning and Indian families once again weighing Maldivian holidays, the archipelago's battered but resilient tourism industry has every chance to set sail anew.
About the Author
Sanbeer Singh Ranhotra
Sanbeer Singh Ranhotra is a producer and video journalist at Network18. He is enthusiastic about and writes on both national affairs as well as geopolitics.
tags :
India-Maldives relations Maldives pm narendra modi Straight Talk
view comments
Location :
New Delhi, India, India
First Published:
July 25, 2025, 11:40 IST
News opinion Straight Talk | Rebooting Paradise Inc: Why Modi's Visit Is A Booster Shot For Maldives
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
a minute ago
- Hans India
Delhi: JP Nadda joins veterans in Defence Colony for Mann Ki Baat
BJP National President and Union Health Minister Jagat Prakash Nadda on Sunday led the party's Delhi unit leaders in tuning in to Prime Minister Narendra Modi's 'Mann Ki Baat' radio show in the company of veterans. Nadda listened to the 'Mann Ki Baat' programme at Defence Colony along with Vinod Tawde, Baijayant Jay Panda, Delhi BJP President Virendra Sachdeva, Bansuri Swaraj, and retired army officers at an event coordinated by local MLA Neeraj Basoya. Additionally, the Delhi BJP made arrangements for the public to listen to the programme across 14 organisational districts. Sachdeva stated that PM Modi consistently strives to bring positive stories and initiatives from across the country to the public through Mann Ki Baat. As a result, the programme has now become a people's movement. He added that the way PM Modi highlighted how science in the 21st century is rapidly progressing with renewed energy is commendable. He mentioned the recent success of Indian students at the International Chemistry Olympiad and that students also won three golds, two silvers, and one bronze medal at the International Mathematical Olympiad held in Australia — a matter of great pride. Elsewhere, Union Minister of State Harsh Malhotra and Delhi BJP's Organisational General Secretary Pawan Rana listened to the programme in Gharauli, East Delhi, with Mayur Vihar District President Vijendra Dhama and party workers. Earlier, the Delhi BJP President paid tribute to the three civil services aspirants who tragically drowned on July 27, 2024, due to sewer backflow in the basement of a coaching centre in Rajendra Nagar, as well as a student who died from electrocution due to a hanging wire in Patel Nagar. Sachdeva stated that due to criminal negligence and corruption by the Arvind Kejriwal government, no proper cleaning of drains and sewers was carried out in 2024, which led to the untimely deaths of these four talented students – Naveen Dalwin, Shreya Yadav, Tanya Soni, and Nilesh Rai – along with nearly 50 other citizens of various ages, who died due to drowning in waterlogged areas. The Bharatiya Janata Party had promised in its 2025 election manifesto that it would seriously address the issue of waterlogging, and we are satisfied that our government has managed to keep waterlogging to a minimum. Sachdeva further stated that the BJP-led Delhi government had pledged to prevent the recurrence of such accidents in Rajendra Nagar, Patel Nagar, Moti Nagar, Burari, Kirari, and other areas. 'We are proud that, unlike last year when over 50 lives were lost due to waterlogging in Delhi, no such incidents occurred this year due to the vigilance and preparedness of the government,' he said.
Hans India
a minute ago
- Hans India
Gangaikonda Cholapuram committee hails announcement of grand statues for Chola emperors
Prime Minister Narendra Modi on Sunday offered prayers at the ancient Shiva temple of Gangaikonda Cholapuram in Tamil Nadu and also announced that grand statues of Chola emperors Rajaraja Chola and Rajendra Chola will be erected to honour their contributions to Indian history and culture. The Prime Minister's promise of constructing new and grand statues of Chola emperors has been welcomed and deeply appreciated by Gangaikonda Cholapuram Development Committee. Gomagan, the president of Gangaikonda Cholapuram development committee expressed his gratitude to the Prime Minister and said that this is a joyous moment for all of us. 'The visit of PM Modi to Gangaikonda Cholapuram is a joyous event for all of us. Since 2014, we have been celebrating the Aadi Thiruvathirai festival on behalf of the Gangaikonda Cholapuram development committee. In this context, we express our gratitude to Chief Minister Stalin for recognizing the Aadi Thiruvathirai festival as a state festival from the year 2022,' he said. He further said: "We thank PM Modi for his pledge to build a grand statue for Rajendra Chola, who is renowned for constructing a large navy amongst Indian kings and for leading Naval campaigns in the Southeast Asia." A special tribute was also paid to Rajendra Chola with the release of Rs 1,000 coin featuring his likeness, which brings pride and joy to all of us, Gangaikonda Cholapuram committee further said. Speaking during a special function at the historic Gangaikonda Cholapuram temple in Ariyalur district, PM Modi said that the Chola empire represented a golden era of India, marked by achievements in architecture, governance, diplomacy, trade, and cultural integration. 'The Cholas established strong political and trade ties with Sri Lanka, the Maldives, and Southeast Asia. It is a coincidence that I returned from the Maldives yesterday, and today I stand here in the land once ruled by these visionary kings,' he remarked.
Indian Express
a minute ago
- Indian Express
Vandita Mishra writes: As the Monsoon session of Parliament enters its second week
Why did Vice President Jagdeep Dhankhar suddenly resign at the end of the first working day of the Monsoon Session of Parliament? The question is riveting. But unfortunately, l'affaire Dhankhar allows us a very limited range of wondering. As Vice President and Rajya Sabha chairman, and as governor of West Bengal before that, Dhankhar spoke the lines scripted by the Narendra Modi government, almost as if they had been written out for him. He took on the elected chief minister, Mamata Banerjee, every day, firming up a template for the disabling politics practised by other BJP-appointed governors in Opposition-ruled states. He loudly confronted the Judiciary and the Opposition at the Centre, and weaponised the Rajya Sabha rule book to stifle debate, not encourage it. There seemed to be little or no daylight between the positions of Dhankhar and the Modi government. Up till now. So, now that a crack is showing, wide enough for Dhankhar to have made his unceremonious exit, or for him to have been eased out abruptly — the health reasons he cited for his resignation are not being taken seriously — there is an opening. Perhaps, hidden in plain sight, Dhankhar had overplayed the hand he had been dealt by the Modi government, and a government that maintains a tight control over MPs/ministers as well as constitutional authorities, could not let that be. All the fevered speculation in the last week about why the former V-P quit boils down to this. The story of the V-P's exit could have been more interesting. It could still be, arguably. It could have been that, to a third-term government with a messianic self-image that loses no opportunity to assert its absolute power absolutely, that gives no quarters to the dissenter and lays all opponents low, Dhankhar has done something that has not been done so far. He has spoken truth — or even better, the Constitution — to power, from within. It could have been that, having subdued the Opposition and its own MPs and Ministers, the government now came up against a pushback from the less bendable constitutional authority. That's a tantalising possibility. But there is a problem here, and it is this: Nothing in Dhankhar's very public record till now supports that particular theory. A level of publicness and transparency — missing from this episode so far — would also have been intrinsic to it. What we are left with, then, is an imagined drama of mincing moves on the chessboard of power and politics that ostensibly led to the V-P's exit. It is set against the broader canvas of a newly reconvened Parliament. Here, large issues, from the recent Operation Sindoor to the ongoing Special Intensive Revision of electoral rolls in Bihar, which has raised genuine fears of disenfranchisement of large numbers of voters, have lined up, and the House has yet to properly let them in. As the Monsoon session enters its second week, then, on one side is the shadow-play of Dhankhar's exit, and on the other side an Opposition clutching at the smaller issue even as, on the larger issue, it does not seem to be getting a grip. Leaders of the Opposition have proposed to host a farewell dinner for Dhankhar, ostensibly to embarrass the government, twist the knife in. But on SIR, the Congress-led Opposition's legitimate criticisms of the Election Commission's impractical timelines in a poll-bound state are in danger of being clouded by its own disunity and Rahul Gandhi's loose and lurching pot shots at the EC. In Gujarat, on Saturday, Gandhi reportedly said the EC was like a 'cheating cricket umpire' and that Congress defeats in the 2017 and 2022 assembly polls in the state had to do with manipulated voter lists. For a leader speaking to party workers — Gandhi was addressing newly appointed Congress district and city unit presidents — there is room for some overblown rhetoric. But this sounded too much like Gandhi blaming the EC in a way that not only lets Congress off the hook, but which could also undermine the case he is making on the conduct of the SIR in Bihar against it. In Gujarat, Congress has failed to stanch the flow of Congressmen crossing over to the BJP camp, to an extent that voters distrust the Congress ability to hold its own in the state quite literally. As in many other states, it has failed to break BJP dominance through new ideas, or even through a new set of leaders. Its messaging has been inconsistent, lacking follow-up on the ground. And it has not been able to live down, or move ahead from, the shortcomings and mistakes of its own past governments. None of these issues can be fixed by turning the focus to voter lists. Of course, the ongoing SIR in Bihar is a different story, where the EC is fumbling visibly. But by setting up the fight so broadly, the party makes it more difficult to ask the sharp and pointed questions that need to be asked of the EC. Both the V-P exit drama about shadowy things, and the loose balls Congress is throwing at the EC, are part of the same story. For an Opposition still flailing to seize the initiative, the best hope is that, in its third term, the government's cracks will start showing. Till next week, Vandita
