In the past year, Indians have shown a sustained interest in overseas travel, with a record-high spending of over $2 billion in August alone. The 2023-24 fiscal year saw the highest overseas travel spending on record, amounting to $17 billion, which was a 25% increase over the previous year. This trend indicates that Indians are increasingly willing to spend more on travel and are becoming a key source market for outbound tourism. Millennials in India are leading the way in travel spending, with an average of $6,031 annually, more than any other generation.
The Indian government has inaugurated three new airports under the Regional Connectivity Scheme, aimed at upgrading and developing aviation infrastructure to improve connectivity to smaller cities in India. This initiative also aims to increase scheduled flights to these regions with government financial support. As a result, new airlines such as Akasa Air and Fly91 are emerging, with more in the process of getting clearance to start operations. These new airports will help connect people from remote regions to major aviation hubs in the country, eliminating the need for long hours of travel to the nearest airport.
There has been a significant increase in visa applications for Vietnam, with a 146% surge compared to the previous year. The demand for visas has been particularly high in cities like Bengaluru, Mumbai, and Delhi, with solo travelers accounting for 66% of applications. Group travel has also increased, especially among Gen Z and Millennials, driven by strong connectivity, diverse experiences, and budget as well as luxury travel options. This surge in demand highlights the growing interest of Indians in exploring new destinations and experiences.
Hospitality companies like Sterling and Stone Wood are expanding their portfolios to cater to the growing demand for travel in India. Sterling recently opened its second resort in the Pench Wildlife Sanctuary, with plans to add 20 resorts and 1,000 keys over the next 12 to 18 months. Stone Wood launched a new hotel in Rishikesh, marking its entry into Uttarakhand. These expansions indicate the growing potential of tourism in India and the need for more accommodation options to meet the increasing demand from travelers.
Tourism at lighthouses in India has seen a significant increase of 400% in the past decade, with footfall reaching 1.6 million visitors last fiscal year. Minister of Ports, Shipping, and Waterways Sarbananda Sonowal announced that over 900,000 tourists have visited lighthouses in the first half of the current fiscal year. India has invested INR 600 million to develop 75 lighthouses across the country, adding amenities such as museums, amphitheaters, and children’s parks to enhance the visitor experience. This growth in lighthouse tourism highlights the diverse attractions that India has to offer to both domestic and international travelers.
