- “If the current growth trajectory continues, the country is expected to exceed its pre-COVID numbers by 2025,” said Santosh Kumar, Country Manager for India, Sri Lanka, Maldives, and Indonesia at Booking.com.
- “Vision 2047 for Tourism aims to elevate India’s inbound tourism by tenfold, positioning us as a premier global destination,” said Mugdha Sinha, Director General (Tourism), Government of India, Ministry of Tourism.
- The report also shows that tourism is expected to contribute around USD 512 billion to India’s GDP by 2028, reflecting a strong recovery and sustained growth trajectory for the sector.
- There are new entrants in the top 10 including Hong Kong, Australia, Italy, and the Netherlands and an increasing interest from Europe and Central Asia.
- Five ways to future: connectivity & accessibility, simplified visa processes, ramping up international marketing efforts, set the gold standard in hospitality, embrace AI and sustainable travel practices.
A recent report indicates that India’s inbound tourism industry is on a strong recovery trajectory, with projections estimating around 10.1 million international visitors by the end of 2024. This figure is close to pre-pandemic levels, as India recorded 10.9 million visitors in 2019, according to Booking.com’s “How India Travels 2024 – The Inbound Edit” report, produced in collaboration with Accenture.
“If the current growth trajectory continues, the country is expected to exceed its pre-COVID numbers by 2025, highlighting a strong rebound for one of the nation’s most vital sectors,” said Santosh Kumar, Country Manager for India, Sri Lanka, Maldives, and Indonesia at Booking.com.
In 2023, India welcomed over 9 million foreign tourists, reinforcing its emergence as a significant global travel hub. The Ministry of Tourism reported approximately 4.7 million inbound arrivals for the first half of 2024, compared to 5.3 million during the same period in 2019. “While there is still a gap, the trajectory is promising, and we are optimistic about a full recovery by next year,” Kumar added.
This growth is fuelled by India’s rich cultural heritage, diverse landscapes, and competitive pricing, alongside improvements in air transport and infrastructure, solidifying its status as a premier destination in South Asia.
Further, Mugdha Sinha, Director General (Tourism), Government of India, Ministry of Tourism believes that the Vision 2047 for Tourism aims to elevate India’s inbound tourism by tenfold, positioning India as a premier global destination. “With technology and big data as transformative drivers, we are not just upgrading infrastructure, but also leveraging tourist behaviour analytics to tailor our offerings. Our focus on safety, hygiene, and connectivity ensures that every visitor experiences the best of India, driving both employment and GDP growth in the creative economy,” she said while commenting on the report.
Rankings are roaring but massive potential exists
India’s global rankings are also improving. According to the World Economic Forum, India has moved up 15 places in just three years, now ranking 39th globally, up from 54th in 2021. In 2023, India ranks 8th globally in GDP contribution from the travel and tourism sector, with projections to rise to 4th position within the next decade.
The tourism surge has also brought significant economic benefits, with Foreign Exchange Earnings (FEEs) reaching USD 15.3 billion in the first half of 2024—marking a 17.6% rise from 2023 and a 5.5% increase from 2019 levels. This influx of international visitors is boosting the local economy, with projections estimating the creation of 58 million jobs by 2033. Additionally, the report also shows that tourism is expected to contribute around USD 512 billion to India’s GDP by 2028, reflecting a strong recovery and sustained growth trajectory for the sector.
“India’s reputation as a tourism powerhouse is growing on the global stage, but there is still a lot of potential that remains untapped. The opportunities for growth in this space are immense, particularly as India is positioned to exceed its own GDP growth rate through the travel and tourism sector. Currently, our economy is growing at a healthy rate of 6-7%, and the travel sector is expected to outpace that growth,” said Kumar, adding that one of the major factors driving growth in tourism is the significant investments being made in infrastructure.
“Whether it’s airports, roads, or digital infrastructure, India is making strides in creating a more tourist-friendly environment. These developments will be crucial as we look to tap into the massive potential that still exists,” he added.
Hong Kong, Australia, Italy, & the Netherlands among new markets
To further drive home the point, Kumar brought up recent data from Booking.com, showing new trends in global interest toward India and a shift in source markets. This showed the US, United Kingdom, Germany, and United Arab Emirates emerging as top inbound markets for India in 2024, replacing previous leaders like China, Canada, and Bangladesh. Notably, there are new entrants in the top 10 include Hong Kong, Australia, Italy, and the Netherlands. While the traditional source markets continue to evolve, there has also been an increasing interest from Europe and Central Asia, bolstered by new direct flights between the regions.
Diving further, the report reveals that India’s major cities—Delhi, Agra, Mumbai, Bengaluru, Jaipur, and Chennai—continue to dominate in terms of tourist interest, lesser-known destinations are seeing a surge in popularity (Bhopal & Jhansi). Places like Patnitop, Pahalgam and Leh are drawing increasing attention, which have experienced year-on-year growth of 2x or more.
Another key finding highlights the loyalty of visitors, with 44% of inbound tourists being repeat visitors, drawn by positive experiences. Meanwhile, 40% are first-time visitors, eager to explore multiple destinations. While 16% are those who have visited but don’t plan on returning.
Challenges remain, what is the way forward?
Despite the challenges of recent years, the industry has adapted to the evolving expectations of international travellers. However, to break into the top 10 global tourist destinations, India needs more than incremental improvements—it needs to reimagine the traveller experience.
Anshul Gupta, Managing Director and Travel lead for Advanced Technology Centers in India, Accenture drew attention to the complexity of trip planning, pointing out that most travellers visit up to 10 websites during their research, creating an overwhelming experience. He remarked that this “information overload,” reported by 43% of travellers, was a significant challenge in the tourism landscape, besides limited customisation options, difficult finding unique options, lack of payment options, reliable recommendations and more. Additionally, travellers often experience friction when piecing together their itineraries, leading to unnecessary effort and confusion.
Gupta also addressed concerns such as language barriers, cultural differences, and the relatively small group (2%) who cited limited food choices in India as a concern.
Further, India’s allocation of $3.9 million (INR 33 crore) for international marketing under the ‘Incredible India’ campaign is a positive step. But it is disproportionately low compared to the $21.1 million (INR 177 crore) allocated for domestic tourism marketing. In contrast, Sri Lanka is investing ~$5 million26 in targeted digital campaigns across 11 key markets, while Indonesia’s budget is set at $236 million27 (3.3 trillion rupiah) with a target of 14.3 million arrivals. Having a consistent and powerful global message is critical, besides strong storytelling and promotions.
The report further suggested that to close the current gaps in marketing, the Indian government can establish clear key performance indicators (KPIs) for destination marketing and management. This would improve tracking and measuring campaign effectiveness.
Gupta acknowledged that while ongoing efforts by the government and private sector have improved transportation, connectivity, and visa processes, there is always more to be done. The continuous development of infrastructure, particularly in Tier 2 cities, was highlighted as a critical element in promoting tourism. He shared his enthusiasm for the role of AI and technology in enhancing travel experiences. Gupta stressed that personalised, AI-driven solutions are transforming the way travellers plan their trips.
Concluding the presentation, Booking’s Kumar pointed out the five ways to future which include connectivity & accessibility, simplified visa processes, ramping up international marketing efforts and investments, set the gold standard in hospitality, embrace AI and sustainable travel practices.
Notably, for the second edition of this report, Booking.com, in collaboration with Accenture, did a survey which was commissioned by Booking.com and conducted among a sample of 2,000 respondents (adults across various age groups) who intend to travel to India in the next 12-24 months; across 19 countries and territories.
