India is rapidly emerging as a global travel hub, driven by a significant increase in inbound tourism, according to the latest report from Booking.com, “How India Travels 2024 – The Inbound Edit.” The report, which was produced in collaboration with Accenture reveals insights on the strong recovery of India’s inbound tourism sector. It sheds light on changing traveller preferences and motivations as well as the overall impact to the Indian economy.
India is one of the most popular destinations in South Asia. Its diverse landscapes and rich cultural heritage have helped it become a top destination for foreign tourists. This tourism boom has resulted in substantial economic gains. Foreign Exchange Earnings, or FEEs, from tourism reached USD 15,3 Billion in the first half 2024. This is a 17.6 % increase from 2023.
The influx in international visitors is catalyzing local economies, and could potentially generate 58 millions jobs by 2033. The tourism industry is expected to contribute USD 512 billion by 2028 to India’s Gross Domestic Product, a significant increase from 2023.
How does the world view India as a tourist destination?
The report reveals a number of key trends affecting India’s tourism landscape. These trends are based both on a survey conducted with travellers planning to visit India over the next 12-24months, and external data analysis.
More than half of international travelers plan to visit India on their own, while 22% intend to combine the trip with visits to other Asian nations. This shows that India is both a primary travel destination and a regional stopover.
The United States and United Arab Emirates, along with the United Kingdom and Germany, have replaced China, Canada and Bangladesh as the top markets for India. Hong Kong, Australia Italy and the Netherlands have also entered the top ten inbound markets by 2024.
While metro cities such as Delhi, Mumbai Bengaluru and Jaipur continue attracting the majority of tourists, lesser-known locations are gaining in popularity. Hampi, Leh Patnitop and Khajuraho are among the places that have experienced a twofold growth in popularity year-onyear. This shows travellers’ growing interest to explore India’s diverse, off-the-beaten path attractions.
Nearly 44% of inbound travellers plan to return to India, based on positive experiences. Further, 41 percent of travelers plan to explore 2-4 destination during their visit while 35 percent plan to cover five to ten locations, highlighting the desire for a diverse experience across the country.
India’s tourism industry has undergone a significant change. While 52 percent of tourists choose complete travel packages, 40 percent book individual components. Online platforms are crucial in facilitating more flexible and personalized experiences for travellers.
Tourism in India: Opportunities and challenges
The report highlights the challenges that international visitors face, even though India continues its growth and transformational experiences. Travellers’ satisfaction is hindered by limited customization options (49%), lack of seamless travel packages which bundle flights, accommodation, and activities (51%), and information overload (43%).
Mugdha sinha, Director General of Tourism, Government of India, commented on the findings. “Vision 2047 for Tourism” aims to elevate India’s tourism inbound tenfold and position us as a leading global destination. We are leveraging data analytics and technology to upgrade our offerings and ensure that travellers experience India’s best, from wellness to adventure to responsible travel.
Santosh Kumar, Country Head, Indian subcontinent & Indonesia at Booking.com, remarked, “India’s inbound tourism sector is experiencing unprecedented growth, fueled by its rich heritage and diverse landscapes. India’s reputation as a global destination is evident by the surge in foreign arrivals. India’s ability offer both bustling urban areas and serene landscapes has proven to be a major appeal to travellers seeking authentic, immersive experiences.
Anshul gupta, managing director and travel lead at Accenture’s Advanced Technology Centers India, said, “India’s tourism industry is defined as transformation-led growth.” India can position itself on a global tourism map by leveraging AI and big-data technology to streamline travel operations, enhance visitor experience, and further streamline operations.
Road ahead?
The report emphasizes the importance to accelerate India’s growth of simplifying visas, expanding direct international flight routes, and promoting India’s diverse travel offers. India’s continued success as a global hub for travel will be largely dependent on collaborative efforts between stakeholders and targeted investments in digital resources.
