Foreign Tourists Lag Behind as Indians Travel Overseas in Post-Pandemic Surge

Featured & Cover Foreign Tourists Lag Behind as Indians Travel Overseas in Post Pandemic Surge

The global surge in travel following the pandemic has impacted many countries, with Indian outbound travel showing a remarkable recovery, surpassing pre-pandemic levels. However, the situation is not as optimistic for India’s inbound tourism. Despite some growth, the number of foreign tourist arrivals (FTAs) in India has not yet returned to its pre-Covid levels, which remains a concern for the country’s tourism sector.

In the first six months of 2024, 47.78 lakh foreign tourists visited India, representing a 9.1% increase from the previous year. However, this figure is still 9.8% lower than the corresponding period in 2019, the last full year before the Covid-19 pandemic disrupted global travel. According to data from the Ministry of Tourism, India appears to have lost some of its appeal, even as other countries experience a surge in travel demand, often referred to as ‘revenge travel.’

On the other hand, Indian nationals traveling abroad have significantly increased. During the first half of 2024, the number of Indian departures rose by 12.3% compared to the same period in 2019, reaching 1.50 crore. Year-on-year, the growth was 13.7%. These statistics are the most recent available, as India’s tourism data is released with a lag, with June 2024 being the last month for which data has been published.

The disparity between foreign tourist arrivals in India and the rising number of Indian travelers going abroad can be explained by several factors. Experts attribute this to weak footfalls from key markets such as Bangladesh and China. Bangladesh, traditionally the largest source of foreign tourists to India, has been facing an economic crisis, which has impacted travel demand. Additionally, the lack of direct flights between India and China has significantly reduced the number of Chinese tourists visiting India.

Furthermore, India is facing increasing competition from other Asian countries, which have become more attractive to tourists due to easier visa policies and more value-for-money offerings. Emerging destinations in Central Asia and Eurasia, such as Azerbaijan, Georgia, and Kazakhstan, have been drawing tourists away from India, offering appealing alternatives at competitive prices.

“Countries such as Qatar, Dubai, Vietnam, and Sri Lanka are drawing tourists with more affordable options and favourable visa policies. These destinations have exceeded their pre-Covid levels, with FTAs in Qatar up 47%, Dubai 11%, Vietnam 4%, and Sri Lanka 0.2% in the first half of the current calendar,” noted CRISIL Market Intelligence and Analytics in a report. The report also highlighted aggressive marketing campaigns by countries like Azerbaijan, Georgia, and Kazakhstan, aimed at attracting international tourists.

The increase in the number of Indian travelers to these emerging destinations supports the notion that these countries are capturing a significant portion of international tourism demand, which may have otherwise benefitted India. Several factors contribute to the appeal of these countries, including relaxed visa rules, better flight connectivity, and relatively affordable travel costs that rival or only slightly exceed those of popular domestic destinations. Indian airlines have taken notice of this trend, increasing both the number of routes and flight frequencies to these regions.

In July, *The Indian Express* reported a sharp increase in Indian tourists traveling to Silk Road countries such as Azerbaijan, Uzbekistan, Kazakhstan, and Georgia, as well as Vietnam, which has become a popular tourism destination in Southeast Asia. Before the pandemic, these countries were frequented by more selective Indian travelers. However, post-pandemic, enhanced direct flight connectivity, quick and easy visa processes, and affordable pricing have attracted a growing number of price-conscious Indian tourists.

According to data from the Directorate General of Civil Aviation (DGCA) analyzed by *The Indian Express*, direct flights from India to Azerbaijan saw an extraordinary 750% increase in passenger traffic during the second half of the 2023-24 fiscal year compared to the previous year. Georgia experienced nearly a 200% rise, while Uzbekistan saw a 115% increase, Vietnam 108%, and Kazakhstan 70%. During the same period, India’s total outbound passenger traffic on international flights grew by 16.5% year-on-year, per the DGCA’s data.

“The surge (in the number of Indians travelling overseas) is largely driven by the K-shaped economic recovery, which is playing out in tourism, too. Indians making multiple trips abroad, supported by rising disposable income that has made international travel more affordable and enhanced airline connectivity and streamlined visa processes that have made foreign destinations more accessible,” noted CRISIL Market Intelligence and Analytics.

The increasing disposable income among certain segments of India’s population has made international travel more accessible to a wider audience. Coupled with better flight options and simplified visa procedures, this has resulted in more Indians opting for vacations abroad rather than exploring domestic destinations.

In contrast, India’s tourism sector continues to struggle to attract foreign tourists at the same scale as before the pandemic. With Bangladesh’s economic struggles and reduced footfall from China, two of India’s largest tourist source markets, the gap in foreign tourist numbers remains noticeable. Additionally, other Asian countries are offering stronger competition with better travel packages, more appealing visa regimes, and affordability, further challenging India’s ability to draw international visitors.

The tourism industry is keeping a close eye on the recovery of foreign tourist arrivals, hoping that improved infrastructure, marketing campaigns, and travel incentives can help regain lost ground. Meanwhile, the growing trend of Indian travelers exploring newer and more affordable international destinations signals a shift in tourism dynamics, with more Indians prioritizing overseas travel options over traditional domestic vacations.

As the global travel landscape continues to evolve in the post-pandemic era, India will need to address these challenges and capitalize on its diverse tourism offerings if it hopes to regain its standing as a preferred destination for international travelers. While outbound travel from India is booming, inbound tourism must recover more robustly for the country’s tourism sector to fully rebound.

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