Preparing for the Indian tourism boom

Articles & Reports
 |  
Aug 2024
 |  
The Economist
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What: Indian international tourism is rapidly growing, with predictions of 90 million departures by 2040 and annual spending reaching $89 billion in three years, making India an increasingly important market for the global tourism industry.


Why it is important: The rise in Indian tourism presents significant economic opportunities for countries worldwide, especially as Chinese tourism has declined.


Indian international tourism is experiencing substantial growth, with annual departures expected to reach 90 million by 2040 and spending projected to nearly triple to $89 billion in three years. This surge is particularly significant as Chinese tourism, previously a major driver of the global tourism industry, has declined following the COVID-19 pandemic.

To attract Indian tourists, countries need to implement specific strategies:

  1. Visa Facilitation: Simplifying visa processes and reducing costs can significantly boost visitor numbers. Countries like Malaysia and Thailand have seen surges in Indian visitors after abolishing visa requirements. In contrast, many Western countries' complex and expensive visa processes deter Indian tourists.
  2. Cultural Collaboration: Partnering with Bollywood has proven effective in promoting destinations. Spain saw Indian arrivals double after collaborating on a popular film. Switzerland and Dubai have also benefited from featuring in Indian movies.
  3. Diplomatic Influence: Indian Prime Minister Narendra Modi's international trips generate interest in destinations through media coverage, indirectly promoting tourism.
  4. Culinary Offerings: Providing a variety of Indian cuisine options, especially vegetarian food, is crucial for attracting and satisfying Indian tourists.

These strategies reflect the unique characteristics of Indian travelers, including their cultural preferences and dietary requirements. As Indian tourism continues to grow, it presents significant economic opportunities for destination countries, potentially reshaping global tourism patterns and influencing international relations.

The rise of Indian tourism also highlights the changing global dynamics, with India's increasing economic power translating into greater international mobility for its citizens. This trend could lead to broader cultural exchanges and strengthen India's soft power globally.


Preparing for the Indian tourism boom