Tour operators in Maldives feel the heat as row escalates

The diplomatic rift between India and Maldives, coupled with the suspension of flight bookings on one of India’s major travel portals, has sent jitters down the spine of tour operators in the island nation.

The Maldivian Association of Travel Agents and Tour Operators (MATATO), a forum for travel agents, has stressed that the Indian market is important to the success of tourism in Maldives.

“The Indian market remains an indispensable force in the success of the Maldivian tourism sector, providing vital support to guest houses and small and medium enterprises (SMEs),” MATATO said in a letter to Nishant Pitti, chief executive officer (CEO), EaseMyTrip, the online travel company.

EaseMyTrip had suspended Maldives flight bookings on Monday after social media posts of Prime Minister Narendra Modi's recent Lakshadweep visit prompted harsh remarks by three Maldivian deputy ministers, who have since been suspended.

MATATO acknowledged the “regrettable and derogatory” comments made by the Maldivian ministers while emphasising that tourism is a major source of livelihood for Maldivian citizens.

"Tourism is the lifeblood of Maldives, contributing over two-thirds of our gross domestic product (GDP) and providing livelihoods to approximately 44,000 Maldivians, who work directly in the sector. This controversy will affect the lives and well-being of many,” it added.

Meanwhile, another travel booking website, Cleartrip, said it has witnessed a two-fold increase in cancellation of flight bookings to Maldives from passengers on the platform.

“Cleartrip has seen a 2x surge in flight cancellations to Maldives on the platform,” Gaurav Patwari, vice-president – Air Category, Cleartrip.

However, Rajiv Mehra, president, Indian Association of Tour Operators (IATO), said, it has not seen cancellations on existing bookings.

“As of now, we have not seen any cancellation for bookings which have already been made.

"Yes, fresh bookings have seen a decline.

"Real impact would be known only in the next 15- 20 days,” he added.

IndiGo operates the maximum number of flights – 48 per week – between India and the Maldives, followed by Vistara (28) and Air India (12). None of the airlines have cancelled their flights between the two countries yet.

Mehra believes the focus should be on improving inbound tourism and infrastructure to attract tourists.

“We have noticed a turndown in bookings to Maldives as travellers are sceptical about the environment.

"We have not seen a rush of cancellations as the cancellation costs at the last moment are very high or could be non-refundable,” said Jyoti Mayal, vice chairperson, Federation of Associations in Tourism and Hospitality.