India's Inbound Tourism Likely To Remain Lacklustre In Upcoming Season

India's tourism industry expects the upcoming season for inbound tourism to remain lacklustre. The numbers of foreign tourists arrival to India continue to remain under pressure and below the pre-pandemic level.

As per government data, the FTAs in 2019 stood at 10.93 million. While the numbers have gone up year by year, but still are away from the pre-pandemic record of 10.93 million.

Ajay Prakash, president of Travel Agents Federation of India, is of the view that apart from the geopolitical situation, there are many other factors due to which FTA remains to be under pressure.

"Inbound tourism is down compared to pre-pandemic levels, somewhere around 85%. Travel and tourism industry is one of the most vulnerable industries whether it is because of geopolitics or pandemic," said Prakash.

Prakash believes that post the pandemic, India as a tourist destination is not being promoted the way it was earlier. According to him, the private sector is doing what it can, but even the government needs to promote well. "Market-driven marketing is required so are structured campaigns. Barring a few states, no other state tourism bodies are actively promoting."

"International marketing budget is just Rs 3 crores. Moreover, India tourism marketing is up to overseas missions, which are already tasked with other priorities, so a lot needs to be done to get FTAs to India," Prakash added

Jyoti Singh Mayal, chairperson of the Tourism and Skill Council of India, also echoed Prakash and told NDTV Profit that inbound tourism remains to be static.

She said, "It's only the private sector that is taking care of marketing, there's hardly any budget with the tourism ministry, only a few States are doing marketing themselves. The entire country needs to take tourism in a big way."

Rajiv Mehra, general secretary of Federation of Associations in Indian Tourism and Hospitality, told NDTV Profit, that geopolitical issues led to diversion and airfares are getting expensive.

According to both Mehra, Prakash and Mayal, India is no longer a budget friendly destination as the cost of hotel tariffs is also now on the higher side.

"Geopolitical tensions and high airfare are hurting us. India is becoming an expensive destination to travel to, in comparison to Sri Lanka, Vietnam and Thailand. With China opening up there might be some improvement in numbers," said Mehra.

Prakash is hoping that the industry should perform better in the upcoming three months, but he feels the industry will be lucky if it touches 9.9 million FTAs, same as last year. On the other hand, Mayal hopes that the business bounces back, as little change was visible last year. Mayal is expecting a growth of 15-20%.

Ravi Gosain, President of The Indian Association of Tour Operators (IATO) told NDTV Profit that he expect some softening in arrivals from distant markets but resilience from regional and diaspora driven segments

"It is not feasible for every traveller to visit India because of higher cost. Hence destinations like Thailand, Vietnam, Cambodia and Philippines have taken an advantage in comparison to India," said Mayal.

"Thailand, Sri Lanka, Malaysia, Vietnam, Indonesia are seeing more tourists than India as they are better priced and more importantly cleaner," said Prakash.

While Prakash is hoping that the industry should perform better in the upcoming three months, but he feels the industry will be lucky if it touches 9.9 million FTAs, same as last year. On the other hand, Mayal hopes that the business bounces back, as little bit change was visible last year. Mayal is expecting a growth of 15-20%.

FAITH's Mehra anticipates modest increase over 2024 figures. "We are expecting about 5-10% but it is most likely going to be below 2019-20 level. Chinese tourists may add to the numbers," said Mehra.

IATO projects inbound tourist arrivals to grow by around 10% compared to last year, crossing the 9 million mark. "This would bring us close to pre-pandemic winter season levels," said Gosain.