India’s inevitable push for dominating global tourism

India has always been a crossroad of global exploration, where the ancient Silk Route and thriving spice trade once connected the world. For centuries, its rich blend of culture, history and renowned hospitality has positioned the country as a hub of global tourism. This year’s World Tourism Day theme, Tourism and Peace, perfectly blends with India’s timeless philosophy of Atithi Devo Bhava, the sacred belief that guests are to be honoured as gods.

The nation has emerged as a key player in shaping the global tourism landscape, drawing millions of international travellers to experience its rich cultural heritage, diverse landscapes and spiritual attractions. According to the Union Ministry of Tourism, over 6.44 million foreign visitors arrived in 2022, marking a 321.54 per cent growth, while 21.60 million Indian travellers ventured abroad the same year, a rise of 152.62 per cent. Domestic tourism also flourished, with over 1.73 billion visits, a significant 155.45 per cent increase from the previous year (2021).

With the tourism sector significantly contributing to the Gross Domestic Product (GDP) and employment generation in the country, the Government has prioritised the sector, with the Union Budget underscoring ambitious plans to boost both inbound and domestic tourism. The country’s campaign initiatives like Incredible India and Dekho Apna Desh have spotlighted India as a must-visit destination for heritage, adventure, wellness and eco-tourism.

Economic experts argue that outbound tourism may have long-term impacts on the nation’s economy, inbound and domestic tourism remain vital engines of growth. The fact of the matter remains that tourism is something much more than just finances or trade, it is the human tendency to wander, explore and experience the world and its beings.

Emerging trends in Indian tourism

Indian tourists have had a considerable impact on worldwide travel patterns in recent years, driven by a growing desire for unique and high-end experiences. With more disposable income and greater purchasing power, Indian vacationers are no longer limited to traditional vacation spots. They are looking for more immersive experiences, such as food adventures, heritage walks, cultural events and rural stays. “As India emerges as a formidable force in the tourism sector, these insights can help bridge the demand and supply gaps in the travel and hospitality space,” says Rajesh Magow, Co-founder and Group CEO, MakeMyTrip. 

Digital platforms and social media have played an important role in this transition, simplifying travel planning and inspiring Indians to visit new places. “Indian tourists are also leveraging digital tools for seamless travel planning, preferring platforms that integrate booking flights, accommodations, and activities in one place,” Rikant Pittie, Co founder, EaseMyTrip added. “Factors which have influenced global travel patterns are desire for high-end/ new experiences like food tours, heritage walks, festivals and rural stays, increased income, higher spending pattern,” says Sabina Chopra, COO, Corporate Travel & Head Industry, Yatra.

Challenges in attracting inbound tourists to India

India continues to face several challenges in drawing international tourists, which affect its standing as a global tourist destination. Mehra emphasised, “One of the most significant issues is inadequate infrastructure, particularly in rural and remote areas, which hampers the overall tourist experience.” Other deterrents include the complexities in visa processes, safety concerns and a lack of comprehensive destination marketing. He also highlights that perception of poor sanitation, overcrowding in cities and safety concerns for women also deter potential visitors.

However, the Indian Government has been making strides to address these issues. Simplified visa processes, such as the e-visa system, have made travel more accessible. India is also investing in better infrastructure, including airports, roads, and accommodation options, which enhance the tourist experience. “We are also witnessing a shift with more focus on niche tourism segments such as spiritual, wellness, adventure, and cultural tourism," he further added. Additionally, campaigns like Incredible India and sustainable tourism initiatives are gradually positioning India as a more attractive destination globally.

Regional growth in inbound tourism in India

Thanks to strategic state-level efforts and targeted marketing, different regions in India have been immensely successful in boosting inbound tourism. States like Madhya Pradesh, Uttar Pradesh, Kerala, Rajasthan, Goa and Tamil Nadu are leading the way. According to Rajiv Mehra, President, IATO India, “Each of these states offers unique experiences, from wellness tourism in Kerala to the cultural and heritage appeal of Rajasthan.”

According to a report by MakeMyTrip, Tier II and Tier III cities are embracing spiritual journeys, with searches for destinations with or around religious spots growing 97 per cent in the last two years. Noticeably, searches for Ayodhya grew by 585 per cent whereas Ujjain by 359 per cent and Badrinath by 343 per cent in 2023 as compared to 2022. Weekend getaways continue to curry favour with Indian travellers – searches for Jim Corbett grew by 131 per cent in 2023 as compared to 2022; Ooty and Munnar are the other favourites in this context.

Rajasthan’s palaces, forts and royal heritage attract history enthusiasts, while Kerala’s focus on wellness and its scenic backwaters lure tourists looking for relaxation and rejuvenation. Tamil Nadu has emerged as a medical tourism hub, attracting international visitors for healthcare treatments, while Goa remains a hotspot for beach lovers and nightlife enthusiasts. These regions benefit from improved infrastructure, sustainable tourism initiatives and a focus on niche travel experiences like adventure, wellness and cultural tourism, aligning with global trends.

Perception of India as a travel destination

India’s image as a travel destination is evolving, from being viewed as a primarily spiritual and historical hub to a more diverse, modern destination catering to a wide variety of travellers. Mehra mentions, “The Incredible India campaign has played a pivotal role in transforming the perception of India, highlighting its diverse offerings beyond the spiritual and historical context.” The country now appeals to luxury, adventure and wellness travellers, thanks to improvements in infrastructure and the promotion of niche tourism sectors such as eco-tourism and high-end travel experiences. Accessible e-visa options and modernised airports, roads and accommodations have further improved India’s global standing. This shift in perception reflects a more tourist-friendly India, welcoming a broader range of international travellers.

Trends in Indian travellers’ destination choices

The preferences of Indian travellers have shifted significantly in recent years. Mehra notes, “Affordability, safety and the ease of visa access are key drivers for Indian tourists choosing their destinations.” Destinations like Thailand, UAE and Maldives are especially popular due to visa-on-arrival policies and easier visa processes.

“Cleartrip’s data indicates that families have been travelling internationally, with a growth rate of 102 per cent. Budget travellers have also shown a significant increase (84 per cent) and are the second most prominent cohort (YoY growth is from 2022 to 2023). This indicates a considerable number of customers still prioritise cost-effective options,” says Anuj Rathi, Chief Business and Growth Officer, Cleartrip. Destinations such as Phuket, Kuala Lumpur and Bangkok were among the top 10 most searched destinations this summer. Newer destinations such as Almaty are also capturing the Indian travellers attention and experiencing an increase in search queries as compared to the same time last year,” Santosh Kumar, Country Manager for India, Sri Lanka, Maldives and Indonesia at Booking.com. “The role of digital platforms and social media has also been significant, inspiring and simplifying travel planning for Indian tourists. Among the top emerging destinations for Indian travellers, Vietnam has gained popularity due to its affordability and cultural richness,” Pittie added.

Rising disposable incomes, social media influence and the desire for unique, personalised experiences have contributed to this trend. Indian travellers are increasingly exploring international destinations, with a growing focus on adventure, wellness and luxury travel over traditional family or religious trips. “Beyond the traditional checklist, Indian travellers are seeking unique and immersive experiences with cultural events (25 per cent), music festivals (22 per cent) and sporting events (17 per cent) topping the list of travel motivations,” shares Kumar from Booking.com.

This shift is also reflective of the rising trend of experience-driven tourism among Indian consumers. “Malaysia became the fourth most popular destination for Indians after they introduced the visa waiver for Indian tourists. Thailand strengthened its top spot after they did the same,” states Omri Morgenshtern, CEO, Agoda.

Impact of international travel restrictions on Indian outbound tourism

The global travel landscape, especially in relation to outbound tourism from India, has been significantly impacted by various factors, including international travel restrictions, visa regulations and currency fluctuations. Mehra notes, “Covid19 travel bans and quarantine measures drastically reduced international trips from India, and visa delays continue to be a challenge.”

Meanwhile, Pittie adds, “One major approach is through strategic partnerships with international tourism boards and agencies in foreign destinations”. “Partnership with banks are also helping the customers to make payments in easy EMIs and plan for long haul destinations which are high value transactions, " shares Chopra.

The depreciation of the Indian rupee against major currencies has made international travel more expensive, forcing many Indian tourists to opt for budget-friendly destinations or even domestic travel. As international travel restrictions gradually ease, Indian travellers are slowly resuming travel, but long-haul destinations remain less popular due to ongoing entry barriers. “We are witnessing a surge in short-haul and regional travel, with countries offering fewer entry restrictions being the preferred choice,” says Mehra, as Indian tourists look for closer, more affordable vacation spots.

Tapping into India’s growing tourism market

India’s rapidly expanding economy and increasing appetite for international travel have made it an attractive market for global tourism destinations, including Fiji. As Robert Thompson, Executive Director for Regions, Tourism Fiji, notes, “India is a key emerging market for us, and we are actively working to position Fiji as a desirable destination for Indian travellers.”

Tourism Fiji has made several specific marketing attempts to attract Indian tourists. These activities include campaigns that promote Fiji as a top honeymoon and wedding destination, emphasising its natural beauty and luxurious lodgings. Custom-tailored luxury packages are created with Indian preferences in mind and range from opulent resorts to personalised cultural activities. Although direct flights between India and Fiji are restricted, enhanced connectivity through transit cities such as Singapore and Australia have greatly boosted accessibility.

To capture this growing demand, South African Tourism has launched a range of targeted initiatives aimed at Indian travellers, particularly from Tier II and III cities. According to Gcobani Mancotywa, Regional General Manager for Asia, Australasia, and the Middle East, South African Tourism, “India remains a critical market for us, and we are constantly evolving our strategies to cater to the changing preferences of Indian travellers.”

One of the main efforts is the #LearnSouthAfrica programme, which provides Indian travel agencies with the expertise needed to create authentic itineraries for Indian travellers. To address the increased demand, particularly during the festive season, South African Tourism has developed the #ExploreMore&MoreForLess campaign in cooperation with Ethiopian Airlines. Mancotywa emphasises the significance of this project, adding, “With the Explore More campaign, we aim to not only make travel more accessible, but also to showcase the diverse experiences South Africa has to offer, all while ensuring that Indian travellers can enjoy affordable airfares.”

Marketing strategies

Both Fiji and South Africa have recognised the importance of understanding the diverse needs of Indian travellers, from luxury and adventure to cultural experiences. Fiji, for instance, has positioned itself as an idyllic honeymoon and wedding destination, with Thompson explaining, “India is a key emerging market for us, and we are actively working to position Fiji as a desirable destination for Indian travellers.” Tailored packages and improved connectivity via transit hubs like Singapore and Australia make the islands more accessible to Indian tourists.

Similarly, South Africa has made significant strides in this arena. As Mancotywa points out, “India remains a critical market for us, and we are constantly evolving our strategies to cater to the changing preferences of Indian travellers.” The country’s More & More campaign highlights over 3,000 unique experiences across its nine provinces, from wildlife safaris to cultural immersion.

Visa policies facilitating tourism growth

Visa accessibility is critical in luring Indian tourists, “We can see a growth of around 13-17 per cent for Visa free countries in Sep '24 as Compared to Sep’23,” Chopra adds. Both Fiji and South Africa have adopted traveller-friendly visa rules. Fiji provides visas on arrival for Indian tourists, simplifying the travel process and making it more appealing to Indian vacationers looking for hassle-free travels. “Visa-free travel policies have made it easier and more affordable for Indians to travel, particularly to Southeast Asian countries,” adds Rathi.

On the other hand, South Africa has introduced an efficient visa system where Indian applications are processed within five to seven working days. A further supported by its partnership with VFS Global, which provides widespread access to visa services across major Indian cities. Mancotywa emphasises, “Our partnership with VFS Global has been crucial in ensuring a hassle-free visa process for Indian travellers.”

Future plans

Fiji and South Africa share the ambition of expanding into India’s growing Tier II and Tier III cities, where outbound travel is on the rise. Both countries are boosting their marketing efforts beyond the large urban centres of Mumbai and Delhi, targeting new markets with untapped potential.

Fiji’s Tourism Board hopes to expand on its success by continuing to meet the demands of Indian travellers for both luxury and adventure. Meanwhile, South Africa has been actively broadening its reach through trade exhibitions and roadshows, with a focus on adventure tourism, cultural immersion, wedding and honeymoon packages. Mancotywa notes, “We are committed to expanding our footprint in Tier II and Tier III cities, which represent a significant growth opportunity for us.”