Maldives has faced significant financial setbacks due to the "Boycott Maldives" campaign initiated by Indian social media activists earlier this year, which was later supported by several Indian celebrities and officials. According to MP Ahmed Siyam Mohamed, Founder and Chairman of Sun Siyam Resorts, the campaign has resulted in the Maldives losing its entire Indian tourism market, amounting to over USD 1 billion in revenue losses. Siyam made this statement while addressing the Parliament, highlighting the immense toll the boycott has taken on the nation's tourism industry.

The boycott campaign was launched in response to derogatory comments made by three Maldivian Deputy Ministers about Indian Prime Minister Narendra Modi on social media. One of the implicated ministers, now dismissed, belonged to the Maldives Democratic Alliance (MDA), a political party led by Siyam himself.

In his speech, Siyam also expressed concern over the government's proposal to increase the Tourism Goods and Services Tax (TGST) from 16% to 17%. He argued that raising taxes alone will not resolve the financial crisis unless the government takes concrete steps to cut wasteful expenditures. Siyam's remarks come amid the Maldives' efforts to restore its relationship with India and attract Indian tourists back to the country, which is vital for the tourism sector's recovery.

This financial loss adds further pressure to an already strained economy, with the Maldives looking for ways to mend diplomatic ties and regain its standing as a top destination for Indian tourists.