Despite the anticipation and excitement surrounding tourism in India, the number of arrivals from foreigners in the first six months of 2024 was lower than expected at just under 4.78 million, a nearly 10% decline compared to the same period in 2019. Bangladesh emerged as the top source country, accounting for nearly 22% of visitors, followed by the U.S., the UK, Canada, and Australia. However, the rankings could shift, particularly due to political unrest in Bangladesh leading to fewer visas being issued by India.
While the U.S. has seen significant growth in its share among the major source markets, Canada and Australia have also increased slightly, with the UK maintaining a consistent share. A recent report by credit ratings agency Crisil indicated that foreign arrivals were at 96% of 2019 levels, showing a positive trend in recovering tourism. There has been a notable increase in foreign exchange earnings, with tourists spending more during their visits, possibly due to higher disposable incomes and a rising preference for luxury experiences.
India is focusing on enhancing aviation development to improve global connectivity and cater to the growing demand for air travel in Tier-2 and 3 cities. Plans have been unveiled to build 29 new airports over the next 20 years, with Gujarat set to receive the highest number of new airports. The government aims to expand capacity in metropolitan regions and develop or upgrade existing airports in smaller cities to handle Boeing 737 and Airbus A320 planes for direct international connectivity.
The Indian government has initiated the “Chalo India” program, offering visa-fee waivers for the first 100,000 tourists entering the country. The program aims to leverage the Indian diaspora as ambassadors to encourage five non-Indian friends to travel to India. The tourism ministry is also collaborating with other ministries to develop key tourism destinations over the next three years. The focus is on enhancing infrastructure and experiences to attract more tourists to destinations like Varanasi and Ekta Nagar in Gujarat.
IndiGo, a major Indian airline, has appointed Isidro Porqueras as the new Chief Operating Officer following the retirement of Wolfgang Prock-Schauer after a 7-year tenure. IndiGo is expanding its operations, entering new markets and introducing premium offerings like business class cabins and loyalty programs. The airline plans to launch long-haul international flights after placing an order for widebody aircraft. Kerala has witnessed record domestic tourists in the last two years, with 21.9 million visiting in 2023, a significant increase from previous years, marking the state as a popular domestic tourism destination.
MakeMyTrip, an Indian online travel company, has partnered with 10 international airlines to offer discounts on international business class fares, aiming to boost international business travel. The company observed an increase in searches for international business class fares, particularly for shorter routes to destinations like Hong Kong, Sri Lanka, and Japan. TreeHouse Hotels and Resorts has expanded its presence in India with new properties in states like Karnataka, Madhya Pradesh, Haryana, and Gujarat, highlighting the growing demand for accommodation options across the country.
