Indian outbound tourism is expanding connectivity with more direct and affordable flights becoming available to an increasing array of destinations. India’s domestic market had been the fastest-growing market in the world in the pre-pandemic era, with international traffic from India growing at half the pace. The industry has fast recovered since and people’s aspiration to travel abroad has become a significant driver of outbound tourism growth.
As India’s economy grows, people are spending more and more on travel, both domestic and international. However, to fully convert the real potential of the Indian outbound tourism industry and ensure sustainable yields, a strong understanding of the customer base is essential. This would entail dedicated research on aspects such as evolving demographics and preferences, as well as investments and support to actors along the tourism value chain.
The rise in outbound travel has stimulated economic diversification, particularly benefiting industries such as travel agencies, tour operators, insurance companies, and financial services that cater to international travellers. This has led to job creation in sectors like hospitality, retail, and aviation. The travel and tourism sector in India employed over 42 million people in 2019, a portion of which can be attributed to the outbound travel market Additionally, exposure to international standards has fostered skill development within the local tourism industry, enhancing service quality and management practices. The projected growth in India’s GDP per capita, along with an increasing tendency for international travel, could result in a surge of Indian travellers exploring the world. If India mirrors China’s outbound travel trends—given their similar population sizes and per capita income growth—Indian tourists could potentially make 80 million to 90 million trips annually by 2040.
The Indian outbound market has emerged as a significant player in the global tourism industry with over 2 million Indian national departures recorded each month in the last financial year. This report aims to delve into the trends, insights, and opportunities related to this sector, underscoring the evolving behaviours and priorities of Indian travellers.
India’s outbound tourism industry has witnessed remarkable growth in recent years due to factors such as increasing disposable incomes, greater connectivity, and a burgeoning middle class. India is now among the fastest-growing outbound tourist markets globally. As the desire to travel to foreign destinations remains strong among Indians, the sector is expected to grow at a rapid pace with increasing collaborations and technology driven solutions. We hope this report serves as a valuable resource for stakeholders across the tourism industry, including policymakers, businesses, and researchers, enabling them to better understand and navigate the nuances of the Indian outbound tourism market.
Initiatives and policies of the government are key to support industry stakeholders and encourage international tourists to visit India. Infrastructure development is among the most important factors that can increase tourist footfall in the country. Improved connectivity in terms of road, rail, air, and waterways is necessary to encourage tourists to visit and travel the country. It can also increase the length of stay of tourists. At the same time, the state must encourage the private sector to build hospitality infrastructure to provide accommodation facilities even in lesser-known destinations to make them more popular.
Skilling of the workforce in the tourism sector would also be an important initiative that the government undertakes. Schemes similar to the Ministry of Tourism’s Capacity Building for Service Provider (CBSP) program may be initiated and expanded in this regard. Further, the government has a key role to play when it comes to promotional and awareness-building activities. It may allocate dedicated funds for marketing and media campaigns to highlight destinations and experiences within India and abroad. Educational programs can also be introduced at the school and college level to increase appreciation of multiculturalism, which will stimulate the desire to experience different cultures and locations from a young age.
The author is Chairman, FICCI Outbound Tourism Committee & Co-Founder, TBO.com and MD, Nijhawan Group.
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