Outbound tourism from India sees 12 pc growth, forex earnings up 23 pc
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Indian tourists are rapidly emerging as a significant growth engine for global tourism, with a 12 per cent growth in the first half of this year, compared with the same period in 2019 before the pandemic, according to a report on Wednesday.
The picture is even brighter when it comes to foreign exchange earnings (FEE), which rose 23 per cent in the first half of 2024 over the same period in 2019, according to Crisil Market Intelligence and Analytics.
In the first half of calendar 2024, foreign tourist arrivals (FTAs) in the country stood at 4.78 million, about 90 per cent of that in the first half of calendar 2019. The rise in forex earnings suggests tourists are spending more during their visits, which can be linked to several factors, including a 20 per cent rise in five-star hotel rates between 2019 and 2024, increasing tourist preference for luxury experiences, and higher disposable incomes with travellers indulging in premium services such as fine dining, high-end accommodations and distinctive cultural experiences.
According to the report, this shift in priority from quantity to quality in travel expenditures is also reflected in fee per FTA, which increased steadily from Rs 1.5 lakh in 2019 to Rs 2 lakh in the first half of 2024, a nearly one-third jump.
"The K-shaped economic recovery seen after the scourge subsided seems to be playing out in tourism as well. Improved airline connectivity and streamlined visa processes have made foreign destinations more accessible," said Pushan Sharma, Director-Research at CRISIL Market Intelligence and Analytics.
Changing travel preferences are also influencing outbound travel as demand for unique experiences, such as wellness retreats and adventure trips, is rising. According to the report, another factor aiding growth is the emergence of cost-effective international destinations. It said that India needs a two-pronged action plan to enhance the contribution of tourism to GDP – first, position itself as a top global tourist destination and, second, woo its potential outbound travellers to prefer domestic destinations instead.
