India–Maldives: Sustainable Tourism Cooperation (2025)

Policy Update
Akshay Sharma

Background

The Republic of Maldives, located on the Indian subcontinent, consists of 1,190 coral islands grouped into 26 natural atolls. Following the Maldives’ independence in 1965, India was one of the first countries to recognise and establish diplomatic relations with them. India and the Maldives have had long-standing ethnic, linguistic, cultural, religious, and economic links. Physical proximity, cultural links, and development collaboration have all contributed to the two countries’ close, friendly, and diverse relationship.

In Small Island Developing States (SIDS) such as the Maldives, where tourism is the principal source of foreign exchange profits and government revenue, the business is growing. India is among the top source markets for Maldivian tourism, while Maldivian carriers and resorts benefit heavily from Indian connectivity and investments. Maldives is an example of how tourism can lead an economy. The tourism cooperation amongst these neighbours creates a more allied South Asian front in the world.

Indian Tourist to Maldives: From Boom then Depression to Boom

Travelers and adventure seekers from all over the world are drawn towards the glittering archipelago of the Maldives, which has become a paradise for beach tourism. Indians have always cherished the renowned Maldivian atolls and gorgeous, sun-kissed beaches. These beautiful landscapes serve as the natural infrastructure of Maldives.

With about 63,000 Indian visitors in 2020, India emerged as the Maldives’ biggest source market despite the difficulties posed by the pandemic. An open skies agreement signed by India and the Maldives in March 2022 is anticipated to improve connectivity between the two nations and increase tourism (Ministry of External Affairs India, 2023). India contributed 11.2% of total tourist arrivals with 18.42 lakh Indian tourists exploring the Maldives in the year 2023.

However, Indian visitors to the Maldives decreased in 2024 due to statements made by members of the new Maldivian government criticizing Indian Prime Minister Narendra Modi’s visit to Lakshadweep. According to the statistics, Indian tourists dwindled with a drop of 42.2% in the first half of 2024. A strain that occurred over the “Boycott Maldives” controversy in India veiled the importance of Indian tourists to Maldives, making Maldivian government make efforts to restore healthy ties with India.

The Maldives Association of Travel Agents and Tour Operators (MATATO) even held grand road shows in major Indian cities to lure tourists. India avoided negative public statements, focusing on its historical ties and patiently engaging, demonstrating a commitment to the relationship and over time around the end of 2024 things came back to normal with the return of tourists.

Sustainability: A renovation factor for tourism industry

The dynamics of tourism as an economic activity and a business proves ongoing attempts to be essential in finding new methods, resources, and viewpoints for fresher insights and a deeper comprehension of the field. Concerns about social responsibility and environmental preservation are driving global trends toward sustainable tourism. As the global tourism sector grows, sustainable methods are taking center stage to aid local populations and reduce negative effects on natural ecosystems.

The Maldives adopted the Tourism Climate Action Plan (2023), developed with support from USAID (United States Agency for International Development), which prioritizes reef restoration, coastal erosion control, and sustainable water management. The Maldives’ Resilient Reefs initiative integrates tourism and conservation, assuring the preservation of natural beauty for future generations. Indian passport holders get visa-free access to the Maldives for tourism purposes. Visitors too can extend their help by choosing environmentally friendly resorts and supporting marine conservation activities.

Recently, community participation has been promoted as a crucial source for improving the quality of contribution to the national economy made by tourism. Community-Based Tourism (CBT) is a type of tourism development that aims to counteract the negative impacts of conventional or mass tourism that is “managed and controlled by the community” (Leksakundilok & Hirsch, 2008, 214) and it “can empower local communities, giving them a sense of pride in their natural resources and control over their communities’ development”.

India-Maldives Cooperation for facilitating Tourism

The Maldives’ tourism industry is both skeptical of climate change and a catalyst for adaptation. With proposed amendments to the Special Economic Zones (SEZs) Act and the introduction of a new category of Sustainable Townships, the Maldives is attempting to diversify its tourism model through large-scale, eco-integrated developments that combine hospitality, housing, health, and education.

India continues to be a significant ally of the Maldives and its economic goals, offering foreign direct investments and other forms of external help. PM Modi was the honored guest at the Maldives’ 60th Independence Day celebrations in Male’s Republic Square. Muizzu referred to India as “Maldives’s closest and most trusted partner” during Modi’s visit. On November 9, 2025, Maldives President Mohamed Muizzu inaugurated the Hanimaadhoo International Airport, a major infrastructure project funded by India’s Line of Credit that is anticipated to revolutionize the northern Maldives by increasing tourism, trade, and regional connectivity.

Tourism also extends to management of fisheries and aquaculture due to tours to fish farms, sea food cuisines, water sports and fishing activities. Recently, India and the Maldives signed a Memorandum of Understanding to Strengthen Bilateral Cooperation in Fisheries and Aquaculture, in which both countries are exploring new frontiers of cooperation in renewable energy and fisheries, both of which are critical sectors for the Maldives’ sustainable development and food security. Deeper coordination in fisheries management aims to stimulate Maldivian exports, improve food security, and implement sustainable practices, all of which are already backed by SAFTA (South Asian Free Trade Area) under SAARC (South Asian Association for Regional Cooperation).

Green energy refers to environmentally-conscious and efficient energy sources to fuel growth and production. Green-energy cooperation, built on India’s experience in solar and energy efficiency, would help the Maldives meet its ambitious goal of generating net-zero emissions by 2030. Furthermore, the five eco-tourism zones are being developed under MoUs signed by the Indian High Commission (Maldives), the Ministry of Foreign Affairs, and the Addu City Council.

Way Forward

“Tourism that takes full account of its current and future economic, social, and environmental impacts, addressing the needs of visitors, the industry, the environment, and host communities” is how the UN Environment Program and UN World Tourism Organization describe ‘Sustainable Tourism‘.

India marked World Tourism Day 2025 with a renewed call to make tourism the engine of a sustainable and inclusive national transformation. The Maldives remains a key maritime neighbour for India and an important partner in India’s ‘Neighbourhood First’ policy and Vision MAHASAGAR (Mutual and Holistic Advancement for Security and Growth Across Regions).

The alliance of India’s technical expertise with the Maldives’ unique natural assets, tends the two countries to work for the development of a model of tourism that is environmentally responsible, culturally sensitive, and economically inclusive for tourists around the world. Policymakers and diplomats need to work upon expansion of these relations in promotion of maritime security, greener technology research, CBT, facilitating tourists and bringing in innovative sustainable practices.

References

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About the Contributor:

Akshay Sharma is a Research Intern at IMPRI.

Acknowledgement: The author extends sincere gratitude to the IMPRI team for their expert guidance and constructive feedback throughout the process.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organization.