Despite a rising global tourism trend, with most countries recovering much faster to pre-pandemic levels, India’s inbound tourism still lags significantly behind in terms of volume. According to the latest industry data, in the first half of 2024, foreign tourist arrivals (FTAs) in the country reached 4.78 million, approximately 90 percent of the figures from the first half of 2019—just before the pandemic.
In contrast, India’s outbound tourism is experiencing a divergent trend, with a notable 12 percent increase in Indian national departures compared to pre-COVID levels in the first half of 2024. Indian tourists are rapidly emerging as a significant growth driver for global tourism, accounting for 2.4 percent of the global outbound market as of 2019.
India's inbound tourism recovery post-pandemic has faced several challenges. Key concerns during the post-COVID period included travel restrictions, changed safety perceptions, and complex visa and entry processes. Ongoing travel restrictions and entry requirements in various countries have affected international arrivals, creating uncertainty for potential travelers to India. Additionally, health and safety concerns in the wake of the pandemic have deterred some international tourists, impacting their willingness to visit the country. The complexities surrounding visa applications and entry protocols have further contributed to a slower recovery in inbound tourism.
Meanwhile, other countries may have marketed themselves more aggressively as safe and attractive travel options, drawing tourists away from India. Additionally, infrastructure challenges have contributed to the factors affecting inbound travel, as the systems for handling increased international visitors may not be fully prepared or up to pre-pandemic standards.
Global economic uncertainties, inflation, and fluctuating currency exchange rates also impact the travel budgets and decisions of foreign tourists. As a result, many travelers may be opting for shorter trips or destinations closer to home, leading to a reduction in long-haul trips to India.
Addressing these issues will be crucial for revitalizing India’s inbound tourism in the coming years. Conversely, India’s outbound tourism, as well as domestic tourism, has surged significantly in the post-pandemic period.
“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. Changing travel preferences such as demand for unique experiences — wellness retreats and adventure trips — and rising cost of travel to, and stay in, domestic locations are making foreign trips on a par, if not marginally cheaper,” says Pushan Sharma, Director- Research at CRISIL Market Intelligence and Analytics.
Post-pandemic, the tourism trends for Indians have shown significant recovery and evolution. With international travel restrictions in place, domestic tourism received a major boost, as many Indians explored local destinations and developed a greater interest in lesser-known places. There is a growing preference for nature-based experiences, such as eco-tourism and adventure travel, while wellness retreats, yoga, and Ayurvedic treatments have also gained popularity.
Travelers are increasingly seeking sustainable options, focusing more on eco-friendly accommodations and responsible travel practices. Additionally, the use of technology in bookings and virtual tours has surged, with contactless services and online experiences becoming more common. There’s also a renewed interest in cultural and heritage experiences, as travelers look for authentic connections to local traditions and histories.
Many travelers now prefer shorter trips, often opting for weekend getaways instead of longer vacations, partly due to work-from-home arrangements. Another trend that emerged following the pandemic is increased health consciousness; therefore, health and safety remain top priorities, influencing travel choices and accommodations.
At the same time, Indian outbound travel has been influenced by aggressive promotions and travel schemes offered by other countries.
“Foreign tourist arrival (in India) this year through June is at ~90% of the levels seen in first half of calendar 2019 before the Covid-19 pandemic began. In contrast, Qatar, Dubai and Vietnam are 47 percent, 11 percent and 4 percent above that watermark, respectively,” observes Mohit Adnani, Associate Director- Research at CRISIL Market Intelligence and Analytics
Adnani added that these destinations made concerted efforts to propel tourism by way of promotions, increased flight connectivity, hosting major events and easing visa policies. New destinations such as Azerbaijan, Georgia and Kazakhstan are gaining popularity as well.
Overall, India’s tourism sector is adapting to new traveler preferences by focusing on safety, sustainability, and unique experiences. While this shift has contributed to a lag in the recovery of inbound traveler volumes to pre-pandemic levels, it has also led to a significant boost in domestic tourism.