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.” Conducted in collaboration with Accenture, the report reveals insights into the strong recovery of India’s inbound travel sector, shedding light on shifting traveller preferences, motivations, and the overall impact on the Indian economy.
With over 9 million foreign tourists visiting India in 2023, the country’s rich cultural heritage, diverse landscapes, and competitive pricing have made it one of the top destinations in South Asia. This surge in tourism has translated into substantial economic gains. Foreign Exchange Earnings (FEEs) from tourism reached USD 15.3 billion in the first half of 2024, reflecting a 17.6 per cent increase from 2023 and a 5.5 per cent jump from 2019.
The influx of international visitors is catalysing the local economy, potentially generating 58 million jobs by 2033. With tourism projected to contribute approximately USD 512 billion to India’s GDP by 2028, a substantial increase from 2023, the industry exhibits a robust recovery and growth trajectory.
How the world views India as a travel destination?
The report reveals several key trends shaping India’s inbound tourism landscape. These trends are based on a survey of travellers intending to visit India in the next 12-24 months, along with external data analysis.
More than half (52 per cent) of international travellers plan to visit India as a standalone destination, while 22 per cent aim to combine their trip with visits to other Asian countries, underscoring India’s role as both a primary destination and a stopover in regional travel plans.
The United States, United Kingdom, Germany, and United Arab Emirates have emerged as the top inbound markets for India, replacing traditional frontrunners like China, Canada, and Bangladesh. Countries like Hong Kong, Australia, Italy, and the Netherlands also entered the top 10 inbound markets in 2024.
While metro cities like Delhi, Mumbai, Bengaluru, and Jaipur continue to attract the majority of visitors, lesser-known destinations are gaining popularity. Places like Hampi, Leh, Patnitop, and Khajuraho have witnessed a two-fold increase in year-on-year growth, signalling travellers’ growing interest in exploring India’s diverse and off-the-beaten-path attractions.
Nearly 44 per cent of inbound travellers have previously visited India and plan to return, driven by positive experiences. Furthermore, 41 per cent of travelers intend to explore 2-4 destinations during their visit, while 35 per cent plan to cover 5-10 locations, highlighting their desire for diverse experiences across the country.
As part of the World Tourism Day celebrations this year, several key initiatives were launched to bolster India’s tourism and hospitality industry. These included the Paryatan Mitra and Paryatan Didi programs, aimed at promoting responsible tourism across 50 prominent destinations in India. These initiatives will empower local communities to act as custodians of tourism development while fostering sustainability.
India’s inbound tourism landscape has evolved significantly, with 52 per cent of travellers opting for complete travel packages and 40 per cent choosing to book individual components separately. Online platforms are playing a crucial role in facilitating more personalized and flexible experiences for travellers.
Opportunities and challenges for India’s tourism industry
While India continues to impress with its growing appeal and transformative experiences, the report also highlights some challenges international visitors face. Limited customization options (49 per cent), lack of seamless travel packages that bundle flights, accommodations, and activities (51 per cent), and information overload (43 per cent) are among the obstacles hindering traveller satisfaction.
Commenting on the findings, Mugdha Sinha, Director General (Tourism), Government of India, said, “Vision 2047 for Tourism aims to elevate India’s inbound tourism tenfold, positioning us as a premier global destination. We are leveraging technology and data analytics to upgrade our offerings, ensuring that travellers experience the best of India, from wellness tourism to adventure and 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. The surge in foreign tourist arrivals is a testament to India’s growing reputation as a global travel destination. As travellers seek authentic, immersive experiences, India’s ability to offer both bustling cities and serene landscapes is proving to be a major draw.”
Anshul Gupta, Managing Director and Travel Lead at Accenture’s Advanced Technology Centers in India, added, “India’s tourism industry is defined by transformation-led growth. By leveraging technology like AI and big data, India can further streamline travel operations and enhance visitor experiences, positioning itself firmly on the global tourism map.”
Road ahead?
The report underscores the importance of simplifying visa processes, expanding direct international flights, and continuing to promote India’s diverse travel offerings to accelerate growth. Collaborative efforts between stakeholders, backed by targeted investments in digital resources and infrastructure, will be key to India’s sustained success as a global travel hub.
