How many foreign tourists visit India?In 2023, foreign tourist arrivals in India grew 43.5% to 9.3 million from 6.4 million in 2022. However this was still significantly below the 2019 pre-pandemic peak of 10.9 million. In the first half of 2024, some 4.8 million foreign tourist arrivals have been registered. But though tourism typically peaks in the latter half of the year, it is unlikely to touch 10 million this year. India ranks 39 out of 119 countries in World Economic Forum’s Travel and Tourism Development Index. The US, Spain, Japan, France and Australia are the top 5 with India placed below China, Indonesia and Malaysia.
What are the reasons for the slow recovery?Global tourism took a significant hit during the pandemic in 2020 and 2021 but recovered sharply thereafter. In 2023, international tourism reached 89% of pre-pandemic levels and in the first half of this year, it has gone up to 96% according to the UN. India’s tally during the same period was 9% more than in 2023 but was still around 10% less than in the first half of 2019. India faces strong competition from countries such as Vietnam, the Philippines, and Sri Lanka that are perceived to be more tourist-friendly. Law and order, air pollution, and modest public infrastructure are some factors keeping tourists away.
Which is the top source country for visits to India?Bangladesh and the US are the top source countries accounting for nearly 40% of all foreign tourist arrivals, followed by the UK, Canada, and Australia. Nearly 45% visit India for leisure and recreation, while over a quarter belong to the large Indian diaspora. The national capital, New Delhi, is by far the biggest entry point accounting for 30% of tourists every year.
How has this impacted business?Tourism is a big contributor to foreign exchange earnings. In 2023, it generated revenue of ₹2.3 trillion, higher than the ₹2.1 trillion of 2019 even as footfall lagged, which means per capita spending of travellers has gone up. In the first half of this year, ₹1.27 trillion has been generated which is 29% more than the same period in 2019. According to Crisil, the spend per foreign tourist has gone up from ₹2 lakh to ₹2.7 lakh in 2024. Higher earnings are due to higher hotel tariffs and airline ticket prices, plus a weaker rupee.
Is anything being done to reverse the trend?Steps being taken include facilitating easy availability of e-visas and reducing the cost, promoting adventure and niche tourism and launching a 24X7 multilingual helpline. Over the past few years, around $1 billion has been spent to improve the tourist experience and upgrade infrastructure. Yet a lot more needs to be done, especially in simplifying and expanding visa-on-arrival, where South-east Asian countries have an edge and improving air connectivity with other parts of the world.