Indian Tour Operators Gear Up For 25% Business Boost Amid India-China Thaw

Tour operators in India are expecting a 20-25% increase in business as they prepare for a long-awaited return of visitors from China amid signs of improving diplomatic ties between two of the world’s biggest economies.

"Before the Covid-19 pandemic in 2020, China was an important source market for Indian tourism, and we expect a gradual recovery of inbound travel from China in the coming months as direct flights resume and e-visa process eases," Ravi Gosain, president, Indian Association of Tour Operators, told NDTV Profit. "We expect at least a 20–25% boost in tourism-related business from China within the next 12 to 18 months."

In July, India officially resumed issuing tourist e-visas to Chinese nationals after years of curbs. Both the countries are now also set to operate direct flights after a five-year pause, prompting tour operators and travel agents to ramp up their efforts — from crafting bespoke itineraries to engaging with Chinese content creators to promote India’s tourist destinations on social media — to attract Chinese travellers, who historically constituted a substantial segment of inbound tourism for India.

"Tour operators are actively preparing curated itineraries, improving digital booking systems and enhancing their partnerships with Chinese counterparts to cater to the likely surge in demand," according to Gosain.

The India-China re-engagement holds the promise of even greater growth potential over the next five years, according to industry executives.

"Close to 200 million Chinese tourists are expected to travel overseas by 2030, and if through focussed marketing we can attract even 10%, it would be a game changer for Indian inbound tourism," said Ajay Prakash, vice- chairperson, Federation of Associations in Indian Tourism and Hospitality.

Chinese tourist arrivals in India grew steadily before the pandemic, reaching a peak of about 3.4 lakh in 2019. However, the number plummeted to 38,960 in 2024 due to pandemic-related curbs, suspension of tourist visas for Chinese citizens, and ongoing tensions along the border.

Similarly, flights between the two countries were halted during the pandemic and, except for a few repatriation flights, never resumed even after New Delhi and Beijing lifted Covid-19 travel restrictions. Since 2020, travellers have relied on costly, long flights via hubs like Bangkok and Singapore.

Bilateral relations hit a nadir following a border clash between troops in June 2020 in the Galwan Valley. Pre-Covid flight services to and from China, however, recorded 90% occupancy, driven by business and visiting-friends-and-relatives travel. The 539 monthly flights in 2019 connecting Beijing and Shanghai with Mumbai and Delhi offered over 1.25 lakh seats. Over 8 lakh passengers flew between India and China in FY19, according to DGCA data.

While the traffic between India and China at present is predominantly for business purposes, the resumption of direct flights would enhance leisure traffic, Prakash said.

India’s largest carrier, IndiGo, has already expressed its willingness to start flights between the two countries once services are cleared. Air India, too, is expected to resume flying these routes as well.

A Delhi-Beijing direct trip, which took six hours earlier, now exceeds 10-12 hours with layovers, inflating costs. The restoration of direct flight connectivity will considerably reduce travel costs by about 15-20%, cut travel time by 4-6 hours, making India a more accessible destination.

The renewed friendship between India and China also comes ahead of the peak holiday season, with tour operators expecting a resurgence of Chinese tourist inflow in places like Bodhgaya, Nalanda, Rajgir and Sarnath. The Taj Mahal in Agra, Uttar Pradesh, and the historic palace city of Jaipur in the northwestern state of Rajasthan also topped most itineraries.

Tour operators are also building itineraries to include Southern India — its temples architecture, Ayurveda, and coastal serenity.

About 1-1.5 lakh more tourists are expected India over the next 12 to 18 months, said J S Nayal, director, Era Tours and Travels. "We are also in close touch with the Ministry of Tourism for inviting Chinese influencers for the purpose of promoting tourism through Buddhism & wellness tours."

Chinese tourists were once the core clientele of the New Delhi-based tour agency, representing nearly half of its revenue in 2019. Nayal also said that they have been hiring more staff who understand Chinese preferences and tastes and guides who know Chinese language basics as they gear up to capitalise from the resurgence of Chinese tourist arrivals in the country.

The next big story in Asia is not rivalry, but resilience and partnership and travel is the bridge that makes it possible, according to Karan Agarwal, Director, Cox & Kings. "After years of pause, we are looking at smoother mobility for business delegations, trade fairs, cultural exchanges, and even spiritual journeys like the Kailash Mansarovar Yatra."