India's foreign exchange earnings are up. Travel spending per tourist is up. But international tourists in India are still lagging behind pre-Covid figures by 10%.
India's aviation sector is expanding and people from smaller cities are increasingly looking to fly. Keeping airfares in check is key to ensuring that air travel remains accessible to the Indian middle class, particularly as it makes up for about a third of the country's population.
International visitor spending in India in 2023 was 14% below pre-pandemic levels. UPI One World wallet eliminates the need for international travelers to carry currency, and could boost tourism spending in India.
Despite the gains, international travel continues to remain a pain point for India's tourism sector. The Economic Survey, which precedes presentation of the Indian Budget, has emphasized on the recovery of this segment for India. It could indicate a higher allocation to the tourism sector in the Budget set to be presented on Tuesday.
It isn’t just about the number of people traveling, but also a series of bold investments India is making in infrastructure and expansion of its aviation sector. And the global travel industry must take note if it wants to capture a share of the market.
India must increase investment and leverage public-private partnership models to build on its niche tourism offerings — such as medical, wellness and spiritual tourism — to attract more international tourists.
Bungy jumping, scuba diving and paragliding may offer a lifetime of unmatched thrills, but are tour operators selling these thrills playing by the rulebook?