Tourists have started cancelling several hotel bookings in Maldives daily ever since a state of emergency was imposed last week according to tour operators.
There was warnings issued in India, China, the United States and Britain after President Abdulla Yameen imposed the emergency. Thereafter he had also arrested judges who had instructed him to free the imprisoned opposition leaders.
Tourism industry comprises for a third of the gross domestic product of Maldives that is measured at $3.5 billion in 2017.
Moody, a rating agency stated that it would be lowering its 2018 growth forecast of 4.5% if tourists are deterred for a longer period. There have been calls from Yameen’s opponents for military intervention by India that is the leading power in the region and this had added to the uncertainty.
The Muslim-majority country of 400,000 people lie close to international shipping lines.
The country has emerged as another arena of contest between India and China. China was built close ties to the Yameen government in its push for a network of friendly ports in the Indian Ocean under its ‘Belt and Road’ initiative. It has also cautioned against foreign interference.
But at the same time it has not deterred it from issuing a travel warning to its citizens who comprise a fifth of the tourist traffic.
As per the early estimates, there has been a rise in booking cancellations by 20% to 25% over the normal pattern ever since the crisis commenced. The Maldives is a country that is composed of over 1,000 islands that compliments coral reefs, turquoise clear waters and white-powdered beaches.
Recent protests, however, in the capital of Malé had caused the Foreign and Commonwealth Office (FCO) to issue travel advice to holidaymakers.
UK Government has advised travellers to exercise caution while visiting one of the most attractive countries of the world.
