Sunday, August 4, 2024
reading time: 2 minutes
Outbound tourism in India is on a promising trajectory, projected to grow from USD 18.82 billion in 2024 to USD 55.39 billion by 2034. This increase has been detailed in the ‘Navigating Horizons’ report, produced in collaboration between Nangia NXT and Ficci. Currently, package tours hold a significant market share of 39.20%, preferred for their convenience and customization options, indicating that Indian travelers continue to prefer organized travel plans offered by agencies.
The report asserts that the incorporation of Indian or vegetarian food options, coupled with growing awareness of niche tourism sectors, is likely to increase the frequency and volume of Indian outbound travel. Factors fueling this growth include rising disposable incomes, an expanding middle class, simplified visa procedures, and a growing desire for international travel experiences.
Emerging destinations such as Egypt, Azerbaijan and Georgia have become favourites for Indian tourists, drawn by their rich cultural fabric, natural wonders and affordability. These countries are part of a broader trend where more accessible and attractive destinations are attracting adventurous Indian travellers.
Looking ahead, the demographic shift towards a younger and more urban population is expected to boost interest in international travel. This demographic development is expected to support and possibly accelerate the expansion of outbound tourism.
At the same time, the report also highlights the broader economic implications of this growth. The rising numbers in outbound tourism are boosting sectors such as aviation and hospitality, not just within India but globally. With a CAGR of 11.4%, the outlook for India’s outbound tourism sector is seen as strong, supported by concerted efforts from various stakeholders.
Moreover, the expansion of Indian outbound tourism is boosting the country’s GDP and strengthening international economic ties. Increased purchasing power, improvements in visa policies, and improved global connectivity are the key factors driving this trend. Additionally, the emergence of digital technology and social media is revolutionizing how travel plans are made, allowing destinations across the world to engage more effectively with the Indian market.
