NEW DELHI: As geopolitical tensions in West Asia continue to disrupt international travel plans and the rupee weakens, Indian travellers are increasingly opting for destinations closer home, driving a surge in demand for domestic tourism.
According to industry estimates, destinations in Jammu and Kashmir, Himachal Pradesh, Kerala, Assam, Sikkim and Goa are witnessing a significant surge in bookings as travellers are avoiding trips abroad due to safety concerns and growing uncertainty. Many are giving preference to spiritual destinations such as Rishikesh, Ayodhya, Varanasi and the Buddhist circuit. The phenomenon has led to roughly 30-35 percent increase in demand for domestic destinations.
The general secretary of Federation of Associations in Indian Tourism and Hospitality (FAITH) Rajiv Mehra said that ever since tensions flared up in West Asia, Indians started exploring travel options within the country.
“There is roughly an increase of 30-35 percent in domestic tourism demand. Premium domestic destinations such as Munnar, Kashmir, Kodaikanal, Shillong, Lakshadweep, Gangtok and Darjeeling are much in demand. People consider travelling within the country safer, predictable and affordable. There are multiple reasons; airfares turning expensive, safety issues as well as depreciation of Rupee,” Mehra said.
The chairperson of the Tourism and Hospitality Skill Council (THSC) Jyoti Mayal, citing high airfare as one of the major reasons behind the trend, said that people are still sceptical of travelling to West Asia and further hence opting for destinations within comfortable reach.
“Traditional tourism destinations are gaining… Tourism in Kashmir is picking up again. People are also going to Ladakh, Kerala, and Goa. And spiritual destinations such as Rishikesh, Ayodhya, and Varanasi are most preferred for short vacations. One reason is that these places are very hot these days. Char Dham is also drawing traction. But these are for limited time periods or short holidays,” said Mayal, who earlier headed Travel Agents Association of India (TAAI).
Out of nearly two crore Indians travelling abroad, west Asian countries would get 30-35 percent of them. Mehra said that about 60-70 lakh Indians were travelling to Gulf countries annually and this number had dwindled to almost zero in terms of leisure travellers.
“50 percent of the total tourists have been diverted to countries such as Vietnam, Sri Lanka and Thailand as these countries are not impacted by currency depreciation. Remaining 50 percent has been shifted to domestic destinations,” said he.
Mehra sought lower taxation on the hotel industry adding that 28 percent tax on star properties is counterproductive as it makes Indians competitive in comparison to our neighbours such as Sri Lanka, Thailand and even Bhutan.
The industry is of the opinion that the situation should be used as an opportunity to make domestic travel more attractive and the authorities should jointly work on improvement of last mile connectivity and facilities at tourist sites.
“There are a lot of destinations which have not been explored therefore we need to build tourist infrastructure around them as only then will they become viable. At the policy level it is important that Tourism or hotels is given the status of industry as that helps in lowering the cost of loans and civil construction, charged by the respective state governments,” said Mehra.
The president of Hotel Association of India (HAI) KB Kachru also sees this current geopolitical environment as a unique opportunity for the tourism sector in the country.
“As global travellers increasingly look for stable, trusted, and culturally immersive destinations, India is exceptionally well positioned to emerge as a preferred tourism hub. This can significantly enhance foreign exchange earnings while accelerating global investor interest in India’s hospitality and tourism infrastructure,” he said.
He further added that foreign investment would be critical to accelerating hospitality growth by providing the long-term capital, global expertise, technology, and market access needed to develop hotels, resorts, convention centres, and allied infrastructure.
“Foreign investment in hospitality is a strategic economic lever for India, with benefits extending far beyond the sector itself. Every new hotel project unlocks investment in construction, logistics, talent, technology, and supply chains, while creating durable employment across both urban and rural India,” Kachru said.
