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Tourism and Hospitality

Indian tourism and hospitality industry analysis, india's tourism and hospitality sector is expected to yield revenue exceeding us$ 59 billion by 2028. moreover, foreign tourist arrivals (ftas) are forecasted to hit 30.5 million by the same year., advantage india, robust demand.

* Drawing upon world-class healthcare amenities and traditional healing practices, medical tourism and wellness retreats entice 21% of international travelers.

* The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.

* International tourist arrivals are expected to reach 30.5 million by 2028.​

* According to WTTC, over the next decade, India’s Travel & Tourism’s GDP is expected to grow at an average of 7.1% annually.

Attractive Opportunities

* India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure.

* Travel and tourism are two of the largest industries in India, with a total contribution of about US$ 199.6 billion to the country’s GDP.

* The government has taken steps to boost investments in facilitate spiritual tourism with states like Uttar Pradesh developing tourist circuits and Uttarakhand and West Bengal enhancing infrastructure for pilgrims.

Policy support

* In the 2024 interim Budget, Finance Minister Ms. Nirmala Sitharaman allocated Rs. 2,449.62 crore (US$ 294.8 million) to the tourism sector, a 44.7% increase from the previous fiscal year.

* The Ministry of Tourism launched the Swadesh Darshan Scheme to develop theme-based tourist circuits, sanctioning 76 projects. Upgraded to Swadesh Darshan 2.0 (SD2.0).​

* The Prime Minister, Mr. Narendra Modi inaugurates and unveils 52 tourism sector projects valued at over Rs. 1,400 crore (US$ 168.5 million) under the Swadesh Darshan and PRASHAD Scheme.​

Diverse Attractions

* India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure.​

* Airport enhancement and the spread of regional airports are opening new opportunities for business, and for drawing larger visits from tourists.

* The country’s big coastline is dotted with attractive beaches.​

Tourism and Hospitality Industry Report

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MI CE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists. In his Independence speech from Red Fort, Prime Minister Mr. Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022 to promote tourism. Pilgrimage travel in India is popular domestically and among the large Indian diaspora worldwide. The government has taken steps to boost investments in facilitate spiritual tourism with states like Uttar Pradesh developing tourist circuits and Uttarakhand and West Bengal enhancing infrastructure for pilgrims.

India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum. India is the most digitally advanced traveller nation in terms of digital tools being used for planning, booking, and experiencing a journey. India’s rising middle class and increasing disposable income have supported the growth of domestic and outbound tourism.

India has been ranked 54th in Travel and Tourism Development Index (TTDI) in 2021 published by the World Economic Forum.

According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth US$ 199.6 billion in 2022.

The Indian travel and tourism industry is expected to record an annual growth at 7.1% per annum.

In WTTC’s Economic Impact 2023 report, India’s Travel and Tourism GDP contribution grew by 5.9%.

In 2021, the travel & tourism industry’s contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028. By 2029, it is expected to account for about 53 million jobs.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in December 2023 were 1,070,163. FTAs during the period January-December 2023 were 9,236,108 as compared to 6,437,467 in January-December 2022.

The percentage share of Foreign Tourist Arrivals in India during December 2023 among the top 5 ports was highest at Delhi Airport (29.92%) followed by Mumbai Airport (18.46%), Haridaspur Land Check Post (7.09%), Chennai Airport (7.02%), Bengaluru Airport (6.20%). FTAs during the period January-December 2023 were 9.24 million.

The percentage share of Foreign Tourist Arrivals in India during December 2023 among the top 5 source countries was highest from UAE (22.33%), followed by Bangladesh (16.97%), UK (10.33%), Australia (8.58%) and Canada (4.15%).

In 2023, 26.52% of foreign tourists visited for Indian Diaspora which marks 9,236,108 foreigners.

Tourism is the third largest foreign exchange earner for the country. FEE during the period January-December 2023 were US$ 28.1 billion.

Domestic visitor spending increased by 20.4% in 2022, only 14.1% below 2019. International visitor spending rose by 81.9% in 2022, but still 40.4% behind 2019 numbers.

Cumulative FDI equity inflow in the Hotel and Tourism industry is US$ 17.1 billion during the period April 2000-December 2023. This constitutes 2.57% of the total FDI inflow received across sectors.

The G-20 Presidency will give India’s tourism sector an unparalleled opportunity to highlight India’s tourism offerings and share India’s tourism success stories on a global stage.

By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.

Tourism Ministry has undertaken the ‘NamasteIndia’ Campaign for encouraging international visitors to travel to India.

In the 2024 interim Budget, Finance Minister, Ms. Nirmala Sitharaman allocated Rs. 2,449.62 crore (US$ 294.8 million) to the tourism sector, a 44.7% increase from the previous fiscal year. This marks a positive change from the 2023 Union Budget's initial allocation of Rs. 2,400 crore (US$ 288.8 million), later revised to Rs. 1,692.10 crore (US$ 203.6 million).

The Ministry of Tourism launched the Swadesh Darshan Scheme to develop theme-based tourist circuits, sanctioning 76 projects. Upgraded to Swadesh Darshan 2.0 (SD2.0), it targets sustainable tourism, selecting 57 destinations for development, with States/UTs preparing plans accordingly.

The Prime Minister Mr. Narendra Modi inaugurates and unveils 52 tourism sector projects valued at over Rs. 1,400 crore (US$ 168.5 million) under the Swadesh Darshan and PRASHAD Scheme.

Ministry of Tourism has partnered with the Quality Council of India (QCI), to assist the Hospitality Industry in their preparedness to continue operations safely and mitigate risks arising out of the COVID-19 pandemic through an initiative called SAATHI (System for Assessment, Awareness and Training for Hospitality Industry). A hotel/unit goes through the SAATHI framework and agrees to fully follow the requirements wherever applicable possible, and a self-certification is issued. Self-certified hotels/units attend webinars to clarify doubts through live interactions. If Hotel/unit desires, they may undertake a site assessment based on the SAATHI framework through QCI-accredited agencies and an assessment report with opportunities for improvement is shared with the assessed unit.

In June 2022, the Ministry of Tourism along with the Associations of Indian Universities (AIU) initiated a 12-episode webinar series under ‘Azadi Ka Amrut Mahotsav’ (AKAM) to engage and expose young minds of our country to the rich and diverse heritage of the country.

Accor, a French hospitality major will expand its India portfolio by adding nine additional hotels in the mid-scale and economy categories, bringing the total number of hotels to 54 in India.

The Medical Tourism sector is expected to increase at a CAGR of 21.1% from 2020-27.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.

The Ministry of Tourism has approved 16 projects for over Rs. 1,300 crore (US$ 171.2 million) in India's North-East.

The Ministry of Road Transport and Highways has introduced a new scheme called ‘All India Tourist Vehicles Authorisation and Permit Rules, 2021’, in which a tourist vehicle operator can register online for All India Tourist Authorisation/Permit. This permit will be issued within 30 days of submitting the application.

The United Nations World Tourism Organisation selected Pochampally in Telangana as one of the best tourism villages in November 2021.

In March 2024, MakeMyTrip revealed a partnership with the Department of Tourism, Madhya Pradesh, and redBus to boost tourism in the region, aiming for sustainable development and positioning Madhya Pradesh as a premier destination.

In March 2024, Indian Hotels Corporation Ltd (IHCL) has announced plans to recruit approximately 2,000-2,500 employees in the fiscal year 2025. This expansion of the workforce aligns with IHCL's ambitious plans, which include a pipeline of 85 hotels.

As of February 2024, Ayodhya is anticipated to host between 50 to 100 hotels over next 3 to 4 years. The city, acclaimed as a global religious destination, is primed for substantial development, with Taj Hotels poised to establish its fourth property in the area.

In December 2023, IHCL expanded its presence in Maharashtra as it signed a hotel in Bandra, Mumbai. The Brownfield project will be branded an IHCL- SeleQtions hotel.

In December 2023, TAJ won the ‘World’s finest luxury grand palaces’ award at the ‘101 Best Executive Summit’ in Germany.

In November 2023, Indian Hotels Company (IHCL) announced the opening of Ginger Mumbai, Airport. The 371 Keys flagship Ginger hotel, strategically located near the domestic airport will introduce the brand’s lean luxe design and service philosophy of offering a vibrant, contemporary, and seamless hospitality experience to its guests.

In September 2023, Mahindra Holidays & Resorts (MHRIL) signed an MOU with the Government of Uttarakhand (UK) to invest Rs. 1,000 crore (US$ 120.16 million) and build 4-5 large marquee resorts over the next few years in Uttarakhand.

OYO estimates India to present a US$ 26 billion opportunity by 2030. To further strengthen its position in India, in October 2021, the company filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) of Rs. 8,430 crore (US$ 1.2 billion) with the Securities and Exchange Board of India (SEBI).

The Government of India launched the e -Visa on November 27, 2014, and subsequently e-Tourist Visa was initially introduced for 46 countries.

The e-Tourist Visa is part of the e-Visa facility which includes an e-Business Visa, e-Conference Visa, e-Medical Visa, and e-Medical Attendant Visa.

In 2021, the Government of India announced 40,000 e-tourist visas out of 500,000 free regular visas to the tourist, to ensure a geographical spread of the incentive to important source markets globally.

In December 2019, e-visa facility was offered to around 170 countries.

The facility for e-tourist visa has been extended to passengers arriving at these ports of Mumbai, Mormugao, Mangalore, Kochi, and Chennai and immigration counters have been set up at five major ports visited by cruise ships, thus facilitating the cruise passenger arrivals at the seaports.

‘Medical Visa’ has been introduced, which can be given for specific purpose to foreign travellers coming to India for medical treatment. ‘E-Medical Visa’ has also been introduced for 166 countries.

India has invested heavily in AYUSH and is in a unique position to attract medical value travellers for a cure through AYUSH and for enhancing wellness.

India is ranked 10th out of the top 46 countries in the world in the Medical Tourism Index 2020-21 by Medical Tourism Association. The Indian medical tourism industry was estimated to be valued at US$ 7,417 million in 2022 and it is projected to surpass US$ 42,237.47 million by 2032.

Cruise tourism is one of the most vibrant and fast-growing sectors of the leisure and travel industry. The Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31.

Moreover, India is looking to take advantage of its 7,500 km coastline to tap the growth potential of the cruise tourism segment.

Ministry of Tourism is funding the development of cruise terminals, lighthouses, and other tourist infrastructure in several coastal locations to promote domestic and international cruise terminals at selected ports by 2023.

Ministry of Tourism has also sanctioned US$ 27.7 million for various projects towards the development of Cruise Terminals and related infrastructure in different States at the major ports under the scheme for ‘Assistance to Central Agencies for Tourism Infrastructure Development.

National strategy and roadmap for the development of rural tourism aims at prioritization of rural tourism at the national level.

This can benefit the local community economically and socially and facilitate interaction between tourists and locals for a mutually enriching experience.

India has rich natural and eco-tourism resources ranging from pristine forests, the snow-clad Himalayas, montane grasslands, golden and silver deserts, rivers, lakes, wetlands, mangroves, beaches, volcanoes and corals, housing tremendous biodiversity.

In 2021, the Ministry of Forest, Environment and Climate Change issued “Ecotourism guidelines in and around protected areas 2021” based on the key recommendations of the Tiger Task Force (2005), provisions contained in the Wildlife (Protection) Act 1972, Scheduled Tribes, and Other Forest Dwellers (Recognition of Forest Rights) Act 2006.

Related News

India saw a 9.1% rise in foreign tourists from January to May 2024, with FEEs increasing by nearly 22.5% to US$ 488.62 billion (Rs. 1.1 lakh crore).

CRISIL ratings forecast a 15-17% revenue increase for India’s tour and travel operators this fiscal, driven by rising domestic and international travel, improved infrastructure, and higher incomes.

India's travel industry sees a 25% rise in monsoon bookings, driven by discounts and 20-40% lower tariffs.

India's vibrant food services sector is set to reach US$ 93.16 billion (Rs 7.76 trillion) by 2028, driven by urbanisation and evolving consumer trends.

Indians are increasingly driving a surge in luxury travel abroad, alongside a rising demand for extravagant experiences across the Asia-Pacific region.

States with Largest Domestic Tourist Arrivals in 2021

• Uttar Pradesh
• Andhra Pradesh
• Maharashtra

Industry Contacts

• Department of Tourism
• Palace on Wheels
• Hotel Association of India
• Federation of Hotel and Restaurant Associations of India

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Tourism & Hospitality

India ranks 6th according to wttc in terms of travel & tourism total contribution to gdp in 2022  .

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Quick links, unlock the marvels of incredible india, powerhouse of tourism and hospitality.

Tourism and Hospitality, as one of India's largest service industries, plays an extraordinary role in driving the nation's growth and prosperity. 

The Tourism and Hospitality sector is an integral part of the Make in India initiative, serving as a vital economic catalyst that fuels job creation and rapid development. 

It acts as a stimulant for the growth of multi-use infrastructure, including world-class hotels, resorts, exquisite restaurants, efficient transportation networks (aviation, roads, shipping, and railways), and state-of-the-art healthcare facilities. 

India proudly boasts a tapestry of geographical diversity, encompassing awe-inspiring world heritage sites and niche tourism offerings such as captivating cruise tourism, exhilarating adventure tourism, renowned medical tourism, and mesmerizing eco-tourism. These unique offerings have resulted in an exponential increase in tourist arrivals, opening up vast employment opportunities. 

The recently announced 2023 Union Budget has firmly placed tourism as a key sector in the spotlight. The Ministry of Tourism, in its mission mode, is dedicated to promoting the industry through active participation from all States, the convergence of Government Programs, and the establishment of impactful Public-Private Partnerships. This visionary approach will facilitate comprehensive development in at least 50 selected destinations through a challenge mode process. 

Recognizing the importance of diversity and gender empowerment, the tourism industry stands as a leading employer of women. The government proactively collaborates with industry stakeholders to create a conducive work environment that fosters equal opportunities and celebrates the contributions of female employees. 

The Ministry of Tourism has also designated the Year 2023 as the 'Visit India' year, an invitation to the world to witness the splendor and magnificence that our nation has to offer. 

Embracing a progressive outlook, India welcomes 100% Foreign Direct Investment (FDI) in the tourism industry under the automatic route.  

Additionally, 100% FDI is permitted for tourism construction projects, including the development of exquisite hotels, resorts, and unparalleled recreational facilities. 

For comprehensive details, please refer to the FDI Policy, which highlights the investment opportunities and guidelines in the tourism sector. 

India's tourism industry stands as a beacon of boundless possibilities, with its rich heritage, cultural tapestry, and captivating destinations. We invite you to embark on an extraordinary journey of investment and partnership, where your vision aligns with the immense potential India holds

Foreign Tourist Arrivals (2023)

Domestic Tourist Visits to all States/UTs (2022)

Annual Growth Rate of FTAs in India (2022)

Foreign exchange earnings (FEE) from tourism (Jan-Dec 2023)

Share of India in International Tourism Receipts (ITRs) in World

6th in terms of Travel & Tourism total contribution to GDP, WTTC (2021)

2nd in terms of Travel & Tourism Employment, WTTC (2021)

39 th  on the World Economic Forum Travel & Tourism Development Index (2024)

• FOREIGN INVESTMENT
• INDUSTRY TRENDS
• POLICIES & SCHEMES

Government of India envisions $56 Bn forex, creating around 140 Mn jobs in tourism by 2030 through inclusive growth and  particularly focusing on cruise tourism, ecotourism and adventure tourism.   

The Indian Tourism sector ranks among the fastest-growing economic sectors in the country. The industry significantly impacts employment and drives regional development, while also creating a multiplier effect on the performance of related industries.

By 2028, India's tourism and hospitality industry is projected to generate revenue of over $59 Bn. Additionally, Foreign Tourist Arrivals (FTAs) are anticipated to reach 30.5 Mn by 2028.

In light of India's G20 Presidency and the India@75 Azadi ka Amrit Mahotsav celebrations, the Ministry of Tourism has designated 2023 as the 'Visit India Year' to promote inbound travel.

The Honorable Prime Minister has envisioned a mission mode approach to develop tourism during Amrit Kaal, with a strategic roadmap for the next 25 years. The objective is to position India as the foremost travel destination globally by the time we celebrate India@100 in 2047, creating unparalleled appeal for visitors from around the world. 

Ministry of Tourism is planning to organize a Global Tourism Investors Summit along with Central Ministries and State/UT Governments to showcase opportunities for investment and trade. The event will allow global investors to explore Indian Tourism products and services.

Union Budget 2023 Highlights:

• 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism
• Sector-specific skilling and entrepreneurship development to be dovetailed to achieve the objectives of the ‘Dekho Apna Desh’ initiative
• Tourism infrastructure and amenities to be facilitated in border villages through the Vibrant Villages Programme
• Unity Malls to be set up in State Capitals or prominent tourist centres

GROWTH DRIVERS

Infrastructure development.

More than half of the Ministry of Tourism’s budget is channelised for funding the development of destinations, circuits, mega projects as well as rural tourism infrastructure projects.

Hotels & Accommodation

Revenue is projected at $7.66 Bn in 2023. CAGR of 8.29% between 2023-27. 61.3 Mn potential customers by 2027

Adventure Tourism

India has 70% of the Himalayas, a 7,000+ Km of coastline, ranks 10th in total area under forest cover, and is one of the three countries in the world with both hot and cold deserts.

Medical tourism

Medical tourism and wellness retreats attract 21% of international travelers, leveraging world-class healthcare facilities and traditional healing practices.

Cruise Tourism

Cruise passenger traffic expected to increase from 0.4 Mn to 4 Mn by 2032. Increase in economic potential from $110 Mn to $5.5 Bn.

Eco-Tourism

Expected to grow at 15.7% between 2019-27 & reach $4.55 Bn. India offers unique destinations, exploration of wildlife, and pristine undisturbed natural areas.

Meetings, Incentives, Conferences, and Exhibitions

The Indian MICE market has less than 1% share currently, but with initiatives such as ‘Meet in India’, National Advisory Council for Mice, India Mice Board, MICE Tourism is projected to double in next 5 years.

Entrepreneurial Opportunities

The tourism sector has 1,300+ DPIIT recognized startups.

Industrial Land Bank Portal

Gis - based map displaying available infrastructure for setting up business operations in the state., investment opportunities in tourism & hospitality.

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Frequently Asked Questions

The Ministry of Tourism is set to host the First Global Tourism Investors Summit in 2023 in collaboration with Central Ministries and State/UT Governments. 

This mega event aims to highlight investment and trade opportunities while providing a platform for international investors to discover India's diverse tourism products and services.  

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Recognising the potential of rural tourism in the country, the Ministry of Tourism has identified Rural Circuit as one of the fifteen thematic circuits for development under the Swadesh Darshan Scheme and is aimed at leveraging tourism as a force multiple for revitalizing the rural economy and for giving both domestic and international tourists a glimpse of rural aspect of the country.

Further, Ministry of Tourism has formulated a Draft 'National Strategy and Roadmap for Development of Rural Tourism in India - An initiative towards Atmanirbhar Bharat', which, inter alia, focuses on generating income and jobs in rural areas and empower local communities, youth and women, fulfilling the vision of Aatmanirbhar Bharat.

The GOI has identified 78 lighthouses in the country as centres of tourism, which are in the first phase under Public Private Partnership (PPP). The identified lighthouses are in Gujarat, Maharashtra, Goa, Karnataka, Kerala, Lakshadweep, Tamil Nadu, Puducherry, Andhra Pradesh, Odisha, West Bengal and Andaman and Nicobar Islands. The GOI has kick started the ‘lighthouse tourism’ project by inviting initial qualification bids to develop eight lighthouses in the first phase, at a cost of INR 128 crore, under the public-private-partnership model for 7 lighthouses.

The goal of the revamped Swadesh Darshan 2.0 Scheme is to develop sustainable and responsible tourism destinations in the country. The scheme is aimed at 360-degree holistic development with a focus on increasing self-employment, youth skilling, private sector investments, and preserving local cultures.

The strategic objectives of the Scheme are: (i) To enhance the contribution of tourism to the local economies (ii) To create jobs including self-employment for local communities (iii) To enhance the skills of local youth in tourism and hospitality (iv) To increase private sector investment in tourism and hospitality (v) To preserve and enhance the local cultural and natural resources  

Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) scheme focuses on developing and identifying pilgrimage sites across India for enriching the religious tourism experience. It aims to integrate pilgrimage destinations in a prioritised, planned and sustainable manner to provide a complete religious tourism experience. As on date, total number of destinations/sites identified for development under the scheme at present are 68 in 30 states/UTs.

Market Research

Economic survey 2023-24, annual report 2022-23 | ministry of tourism, india tourism statistics at a glance 2022, union budget 2023-24: analysis report, economic survey 2022-23, government ministry/department.

• Indian Institute of Tourism and Travel Management
• India Tourism Development Corporation
• Institute of Hotel Management
• Ministry of Tourism, Government of India
• National Medical and Wellness Tourism Board
• National Council for Hotel Management and Catering Technology

Industry Associations

• Association of Tourism Trade Organizations, India
• Adventure Tour Operators Association of India
• Federation of Hotel & Restaurants Associations of India
• Hotel Association of India
• Indian Association of Tour Operators
• Indian Exhibition Industry Association
• Indian Heritage Hotels Association
• National Restaurant Association of India
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India Tourism Revenue Growth

• India Tourism Revenue grew 1.7 % YoY in May 2024, compared with an increase of 1.2 % YoY in the previous month
• India Tourism Revenue Growth rate data is updated monthly, available from Jan 2002 to May 2024
• The data reached an all-time high of 10,277.8 % in Apr 2021 and a record low of -99.6 % in Apr 2020

View India's Tourism Revenue Growth from Jan 2002 to May 2024 in the chart:

What was India's Tourism Revenue Growth in May 2024?

India Tourism Revenue grew 1.7 % YoY in May 2024, compared with an increase of 1.2 % YoY in the previous month See the table below for more data.

Tourism Revenue Growth by Country Comparison

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From India to the world: Unleashing the potential of India’s tourists

Boosted by rising economic prosperity  and a fast-growing economy, India is set to be an important global source market for leisure travel. India is now the fifth-largest economy, and its population has surpassed China’s to become the largest in the world, at over 1.4 billion people. 1 World Bank national accounts data, GDP (current US$) India, accessed September 2023; World population prospects 2022 , United Nations Department of Economic and Social Affairs, Population Division, 2022. And the population is young—the median age is 27.6, more than ten years younger than that of most major economies. 2 World population prospects 2022 . What's more, consumption of goods and services, including leisure and recreation, is forecast to double by 2030. 3 “India’s impending economic boom,” Morgan Stanley, November 8, 2022. Adding a strong postpandemic travel recovery, and a growing appetite for international travel, these factors point to India’s significant potential for outbound tourism.

India is now the fifth-largest economy, and its population has surpassed China’s to become the largest in the world, at over 1.4 billion people.

Through nine charts, this article unpacks trends and opportunities in the Indian travel market. Selected country examples shed light on how destinations can enhance their value propositions to attract and delight Indian travelers.

Indian globetrotters set to soar

Racing ahead: indian wanderlust is taking off, top picks: united arab emirates reigns, new gems discovered, regional flavors; global explorers.

Indian travelers are not a homogenous group; destination preferences vary across regions. For example, travelers from North India constitute a large share of travel to the United States and Canada, while two-thirds of travelers from Kerala prefer destinations in the Middle East. 1 India tourism statistics 2020 , Ministry of Tourism, Government of India, January 2021; MarketIS. Purpose of travel, distribution of the diaspora, and cultural linkages play a role in destination choice.

Destination matchmaking: Five ways to build value

Destinations looking to harness the full potential of the growing Indian market could consider tailoring their value propositions in alignment with one or more of the five key decision points that influence where travelers choose to go. Destinations might ask the following questions to determine which factors align with what Indian travelers look for when planning a trip.

• Research. How attractive and popular is the destination with Indian tourists?
• Accessibility. Is it easy to obtain a travel visa?
• Connectivity. Are there convenient flights that connect India to the destination?
• Booking. Is the destination affordable for Indian travelers, and is there an adequate supply of hotels in the appropriate price range?
• Travel experience. What is the on-the-ground experience like for Indian tourists in terms of weather, attractions, and whether or not the local population is English speaking?

There’s something for everyone in Thailand

Azerbaijan’s visa policy wows indian travelers, vietnam takes off: direct flights skyrocket arrivals.

In 2019, Kolkata was the only city in India with direct connectivity to Vietnam, and three other Indian cities offered sporadic flights. To stand out from Southeast Asia neighbors and gain popularity with Indian travelers, Vietnam improved direct connectivity from India by increasing flight frequency and adding new routes. Indian arrivals are now at an all-time high. 1 Data from Google trends and Diio Mi.

The luxury of Dubai is within reach

In 2022, India was the largest source market for leisure travelers to Dubai. 1 “1.24 million Indian tourists visit Dubai in first 9 months of 2022,” Business Standard , December 10, 2022. The city is known for its luxury offerings and, perhaps surprisingly, also offers a wide range of accommodations, such as 3-star options. And flights from India are affordable when compared with flights of similar distances. Taken together, these factors make the luxury of Dubai accessible to Indian travelers. 2 MarketIS.

Bollywood magic in Switzerland

While only 9 percent of Indian travelers focus on long-haul destinations in Western Europe, Switzerland has been an Indian top-20 destination for over a decade. Switzerland may be popular, as it feels familiar to Indian travelers: many Bollywood hits feature Swiss attractions, there are plenty of Indian restaurants and cultural festivals, and English is widely spoken. 1 “Switzerland and romantic songs of Indian movies,” Solo Backpacker, September 20, 2019; India-Switzerland relations , Ministry of External Affairs, Government of India, February, 2020; Festival of India in Switzerland and Liechtenstein – Events , Ministry of Culture, Government of India, 2018; Swiss hospitality for Indian guests , a joint report from HotellerieSuisse, Berne and Switzerland Tourism, November, 2019.

Namaste, India!

India is a high-potential, growing source market for leisure travel. Destinations looking to attract Indian leisure travelers could consider targeted marketing, an expanded range of affordable options, and customized on-the-ground hospitality that caters to Indian preferences. Destinations may need to take steps now to build a strong value proposition and distinguish themselves as a preferred location. To do so, they could take action in the following areas:

Destinations looking to attract Indian leisure travelers could consider targeted marketing, an expanded range of affordable options, and customized on-the-ground hospitality.

• Connect. Make travel seamless, for instance, by simplifying visa application processes and providing direct connectivity.
• Entice. Offer affordable packages with a range of choices that appeal to specific groups, such as families, couples, or solo travelers.
• Welcome. Make the experience traveler-friendly, for example, by providing appropriate food and beverage options like vegetarian and Indian cuisine.
• Attract . Design targeted campaigns to showcase experiences that Indian travelers want, and use appropriate channels to get the word out, for example leveraging over-the-air partnerships and social media.
• Unlock. Include the MICE (meetings, incentives, conferences, and exhibitions) and business tourism segments in marketing efforts to boost interest in leisure travel.

Divya Aggarwal is an associate partner in McKinsey’s Gurugram office, Margaux Constantin is a partner in the Dubai office, and Kanika Kalra is a partner in the Mumbai office, where Neelesh Mundra is a senior partner.

The authors wish to thank Ashu Airan, Steffen Köpke, Richa Kothari, Karthik Krishnan, Kargil Mishra, and Jean Petersen for their contributions to this article.

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• Indian travel industry sees double digit growth in the next five years

• ETHospitalityWorld
• Published On Sep 3, 2022 at 02:00 PM IST

The return of ‘revenge’ travel – a phenomenon best described as a surge in travel and tourism in the post-pandemic era – has seen an increased demand for offline travel services, with customers preferring speaking with travel consultants, due to numerous complications now associated with travel. That has also led to an increased demand and need for travel and tourism professionals. To cater to the increasing demand for greater face-to-face and personal interaction being sought by customers for their travel requirements, Brightsun Travel Pvt Ltd is expanding its workforce and services in India, with the opening of a new office in August 2022 at Unitech Cyber Park in Gurugram and another office to follow in Mumbai later this year. Advt Speaking at the inauguration of the company’s Gurugram office, Madhu Azad , mayor of Gurugram complimented the Brightsun Travel team and hoped that it will play its part in “making India the second largest travel market in the world by 2030, by which time there will be 448 million air passengers in the country, according to the International Air Transport Association (IATA”). According to Deepak Nangla , MD, Brightsun Travel Pvt Ltd, “The Indian market is expected to surpass 2019 levels by 2023, with the travel market size reaching USD 19 billion. In fact, the travel industry is likely to grow at a CAGR of about 18 percent annually till 2026, by which time the market size is expected to reach USD 29 billion.” Speaking about Brightsun Travel Pvt Ltd.’s growth trajectory, Mr Nangla added that “the company will match the industry growth rate of 18 percent with its consolidated revenues expected to reach USD 350 million by 2026, from USD 294 million currently. The thrust of this growth will be led by markets in the UK, India and Ireland.” Expanding further, Nangla said, “Since the largest growth is predicted to be within the packages space where additional content and easier booking allows customers to be able to access more travel content that even before”, there is an increased need for bespoke and customised travel experiences. The expertise that the travel consultants offer, along with exclusive deals through the sheer volume of business is the perfect combination for the Indian customer looking to start travelling again.”

• Updated On Sep 3, 2022 at 02:00 PM IST

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What’s Driving India’s Surge in Global Travel Influence?

Peden Doma Bhutia , Skift

August 20th, 2024 at 3:00 AM EDT

The younger generation in India are increasingly embracing an aspirational lifestyle that places a premium on travel and new experiences. This trend has led to a significant increase in first-time international travelers.

Peden Doma Bhutia

Skift India Travel Podcast

Skift Asia Editor Peden Doma Bhutia is joined by business leaders, and experts from throughout the industry and Skift’s newsroom, to explore the challenges, opportunities, and trends shaping the Indian travel industry.

Catch Asia Editor Peden Doma Bhutia in conversation with Saniya Zanpure, Skift’s research analyst, as they dive into the Skift Travel Health Index (STHI) — a tool that tracks and measures the performance of various travel sectors. They explore why the travel industry in 2024 is mirroring 2023, with insights into the factors driving this stability. Plus, they look at India’s rise as a major player in global travel and find out what’s fueling this rapid growth.

Skift Travel Health Index : Tracks performance across all travel sectors, initially launched as the Skift Recovery Index during the pandemic to measure industry recovery.

Benchmarking Evolution : Originally compared monthly performance to 2019, but in 2024, it shifted to comparing performance year-over-year to capture current trends better.

2024 Stability : Travel performance in 2024 is stable, similar to 2023. Some sectors, like car rentals, have slowed, while others like aviation and hotels continue to grow.

India’s Outbound Market Growth : India is on track to become the fifth-largest outbound market by 2027, driven by favorable demographics, increased disposable income, and a young, aspirational population.

Visa and Connectivity : Improved visa processes and direct flights have boosted travel, especially to emerging destinations like Vietnam and Kazakhstan.

First-Time Travelers: For first-time travelers, international travel is not just about vacationing, it’s about personal growth, cultural enrichment, and the pursuit of unique experiences. This shift is influenced by several factors, including globalization, social media and exposure to diverse cultures.

Increased Spending : Indians are spending more on travel, especially on transportation and accommodation, while also maximizing value through travel hacks and credit card points.

Sports Tourism : Sports tourism is growing among Indians, with cricket, Formula One, and the Paris Olympics being top attractions.

Social Media Influence : Social media and travel influencers significantly shape travel preferences, particularly among younger generations.

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Episode Summary

In this episode, Skift Asia Editor Peden Doma Bhutia and Saniya Zanpure, Skift research analyst, discuss the evolution and significance of the Skift Travel Health Index, a tool tracking the performance of the global travel industry. Initially launched as the Skift Recovery Index in 2020, the index benchmarked monthly travel performance against 2019 levels to gauge the industry’s recovery from the Covid-19 pandemic. However, in 2024, the index shifted its focus to year-over-year comparisons, providing a more relevant snapshot of current industry trends.

The conversation highlights the stability of travel performance in 2024, noting that while overall figures remain similar to 2023, different sectors show varied growth. For instance, the aviation and hotel industries are experiencing steady growth, whereas car rentals have seen a slight slowdown, affecting the overall Index.

The conversation also explores India’s rapid growth as an outbound travel market. This is attributed to favorable demographics, increased disposable income, and improved visa processes, positioning India to become the fifth-largest outbound market by 2027. The conversation notes that traditional destinations like the U.S. and UAE remain popular, but emerging destinations such as Vietnam and Kazakhstan are gaining traction due to easier visa access and better connectivity.

They further discuss the rising trend of sports tourism among Indians, with major events like the T20 World Cup and the Paris Olympics drawing significant interest. Lastly, the episode delves into the influence of social media and travel influencers on Indian travel preferences, especially among millennials and Gen Z, who are driving a cultural shift towards more frequent, experience-driven travel.

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Tags: india outbound , india podcast , paris , skift podcast , skift travel health index , visa

Photo credit: Skift India Travel Podcast. Skift

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• Published On Jan 27, 2021 at 09:12 AM IST

• By Peden Doma Bhutia ,
• Updated On Jan 27, 2021 at 09:12 AM IST

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India's Animation and VFX Industry Set for Significant Growth by 2026: Report

A cii gt report forecasts india's animation and vfx segment to rise from usd 1.3 billion in 2023 to usd 2.2 billion by 2026, boosting its share in the media and entertainment industry. the avgc-xr sector is poised for further expansion, expecting to create over 160,000 jobs annually..

India's Animation and VFX segment is projected to grow from USD 1.3 billion in 2023 to USD 2.2 billion by 2026, according to a report released by the CII GT on Wednesday. This growth will raise the segment's share in the media and entertainment (M&E) industry from 5% to 6%, the report detailed. The report was unveiled by Sanjay Jaju, Information and Broadcasting Secretary.

Currently, the AVGC-XR sector constitutes approximately 20% of India's M&E industry and is poised for further expansion, the report indicated. AVGC-XR stands for Animation, Visual Effects, Gaming, Comics, and Extended Reality. The report also forecasted that the Indian online gaming industry would reach USD 4.6 billion by 2026, its contribution to the M&E sector swelling from 10% to 13%. Currently, the online gaming industry is valued at USD 2.62 billion.

The report also highlighted the sector's potential as a major employment driver, predicting the creation of over 160,000 new jobs annually, culminating in a total of 20 lakh new jobs by 2030. Swift implementation of the National Draft Policy Framework for AVGC-XR was urged to accelerate growth. The report emphasizes that strengthening the AVGC-XR sector could pave the way for a more vibrant creative economy, with the sector expected to grow 2.2 times over the next four years and increase its global market share from 0.7% to 1.5%.

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When culture meets crisis: how son preference mitigated gender inequality during china’s great famine, turning agri-food waste into eco-friendly biosorbents for cleaner air in industrial settings, revamping brazil's fuel taxes to combat climate change and support vulnerable populations, morocco's economic resilience: growth amid challenges and the road ahead, connect us on.

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• Market size of travel and tourism market in India 2023-2030
• Travel market distribution in India FY 2018-2027, by type
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• Revenue of Airbnb India FY 2018-2020
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Other statistics that may interest you Travel and tourism in India

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• Basic Statistic Direct contribution of tourism and hospitality to GDP in India 2012-2034
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• Premium Statistic Distribution of direct travel and tourism GDP in India FY 2023, by spending type
• Basic Statistic Number of jobs in travel and tourism sector in India FY 2014-2024
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Hotel industry

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• Premium Statistic Operating profit of Association of Danish Travel Agents and Tour Operators 2010-2017
• Premium Statistic Revenue of the Association of Danish Travel Agents and Tour Operators 2010-2017
• Premium Statistic Travel market size in India 2017-2022 by category
• Premium Statistic Leading German tour operators 2017-2019, by revenue
• Premium Statistic ROI of the travel agency and tour operator sector in Italy 2017-2022
• Premium Statistic ROE of the travel agency and tour operator sector in Italy 2017-2022
• Basic Statistic Share of tourist services in the United Kingdom (UK) in 2012, by employment size
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