Manipur Crisis: With tourists gone, a state mourns its dead, and counts its losses

From bustling hotels to thriving restaurants and craft markets, Manipur’s tourism-dependent industries face an uncertain future. Discover how ethnic strife has brought this once-promising sector to a grinding halt.

BY Navin Upadhyay

Manipur, often referred to as the “Jewel of India,” has been a coveted destination for its breathtaking landscapes, vibrant culture, and unique ethnic crafts. However, since the outbreak of ethnic violence between the Meitei and Kuki communities in May 2023, the state’s tourism industry has been brought to its knees. Once a growing sector that supported thousands of livelihoods, tourism in Manipur has nearly collapsed, with devastating consequences for allied industries.

मणिपुर की लोकटक झील 🇮🇳, जो पूर्वोत्तर भारत की सबसे बड़ी मीठे पानी की झील है और दुनिया की एकमात्र तैरती हुई द्वीपों वाली झील है। यह अद्भुत पारिस्थितिकी तंत्र समृद्ध जैव विविधता का समर्थन करता है और स्थानीय समुदायों के लिए जीवनरेखा है। pic.twitter.com/HTZuIJLwNV

— Tribal Army (@TribalArmy) January 8, 2025

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The ethnic conflict, fueled by long-standing social and political tensions, has destabilized the state, resulting in widespread violence, curfews, and a breakdown of law and order. These conditions have not only scared away tourists but have also disrupted the lives of locals who depended on the sector for their survival. The repercussions are far-reaching, touching nearly every facet of the economy.

Decline in Tourist Arrivals

In the years leading up to the conflict, Manipur experienced steady growth in tourist numbers. During the 2019-20 fiscal year, the state welcomed approximately 166,032 domestic tourists and 9,794 foreign tourists. These figures were a testament to the state’s growing appeal as a travel destination. However, preliminary reports for 2023-24 reveal a grim picture: tourist arrivals have plummeted to just 34,468 domestic tourists and 2,300 international visitors. This represents a staggering 79.04% decline in overall arrivals compared to 2019-20.

A Decade of Growth Stalled

Sendra island

Before delving into the current crisis, it is essential to understand the growth trajectory of Manipur’s tourism industry. Between 2015 and 2019, the state witnessed a steady increase in tourist arrivals:

Tourist inflows in 2019-20 reached a new high, thanks to improved infrastructure and aggressive promotional campaigns by the state government. However, the COVID-19 pandemic caused a sharp decline in 2020 and 2021, which was only beginning to recover in 2022:

This tentative recovery was brutally interrupted by the outbreak of ethnic violence in 2023.

Hotel Closures and Job Losses

The ethnic conflict that erupted in Manipur in May 2023 has had a devastating impact on the state’s hospitality sector, leading to unprecedented declines in hotel occupancy rates and significant financial losses for related businesses.

Hotel Occupancy Rates Plummet

Prior to the onset of violence, hotels in Manipur’s capital, Imphal, enjoyed an average occupancy rate of approximately 67%. However, following the outbreak of ethnic clashes on May 3, 2023, these rates have plummeted to below 10%. Many establishments have been forced to shut down entirely, leading to massive layoffs. Smaller guesthouses and homestays, which provided affordable accommodation for budget travelers, have virtually disappeared from the landscape.

Restaurants and Food Services Suffer

The food service industry has mirrored the downturn experienced by hotels. Many restaurants have remained closed for extended periods, with only a few attached to hotels continuing limited operations. Revenue in the food sector has dropped by an estimated 80% to 90% , reflecting the broader economic downturn caused by the conflict.

Economic and Social Implications

The collapse of the hospitality sector has led to widespread unemployment and economic instability. Many workers in hotels and restaurants have lost their jobs, and ancillary services such as taxi operators and tour guides have seen their incomes vanish. The broader economic impact includes reduced consumer spending and a decline in related industries, exacerbating the state’s financial challenges.

Many taxi drivers, unable to sustain themselves in the cities, have returned to their villages or sought alternative forms of employment. The absence of tourists has rendered once-busy transportation hubs eerily quiet.

Collapse of the Handloom and Handicraft Sector

Manipur’s artisans, known for their exquisite handlooms, bamboo crafts, and traditional jewelry, have been among the hardest hit. Before the conflict, the sale of ethnic crafts to tourists provided a stable income for countless families. However, with tourist footfall dwindling to near-zero, demand for these products has evaporated. Additionally, the ongoing violence has disrupted logistics, making it difficult for artisans to access export markets, further exacerbating their plight.

Broader Economic and Social Impacts

The collapse of tourism has had a ripple effect on the broader economy. The loss of income in tourism-dependent industries has reduced purchasing power among locals, further stifling economic activity. Communities that once thrived on the benefits of tourism now face poverty and uncertainty. The social fabric of the state has also suffered, with young people leaving in search of opportunities elsewhere and traditional crafts at risk of vanishing due to lack of support.

The ethnic conflict in Manipur has not only torn communities apart but has also decimated one of the state’s most promising economic sectors. Rebuilding the tourism industry will require concerted efforts to restore peace and stability, rebuild infrastructure, and regain the trust of travelers. The state government, along with local stakeholders, must prioritize efforts to rehabilitate affected communities and industries to prevent long-term economic stagnation.

Manipur’s potential as a tourism hub remains immense, but realizing it will require addressing the root causes of the conflict and ensuring a sustainable path toward recovery. Only then can the state hope to reclaim its status as the “Jewel of India” and rebuild its shattered economy.