The post-pandmeic recovery of inbound tourism in India is lagging behind global trend with six-month arrivals in CY 2024 at 91 per cent of 2019 figure, according to data compiled by rating agency CRISIL.
Globally foreign tourist arrivals have reached 96 per cent of the 2019 figure in the first seven months of the year led by strong growth in Europe and re-opening of Asia Pacific markets.
According to UN Tourism’s world tourism barometer, 67 out of 120 destinations around the world have recovered to pre-Covid figures in the first half of 2024. West Asia has been the fastest growing region with arrivals at 26 per cent above the 2019 figure. Even Africa has seen 9 per cent higher arrivals compared to 2019.
Arrivals in India have grown 9 per cent on a year-on-year basis to 4.78 million in January-June of 2024; these are yet lower compared to 2019.
“Reduced demand from Bangladesh on account of the current political situation there and suspension of direct flights from China is impacting footfalls. Both these countries were major sources of foreign tourists for India and accounted for 27 per cent of foreign tourist arrivals in 2019,” rating agency CRISIL said in a note on Wednesday.
The rating agency said destinations such as Qatar, Dubai, Vietnam and Sri Lanka are drawing tourists with more affordable options and favourable visa policies resulting in slower growth for inbound travel to India.
CRISIL said the government should position India as a global tourism destination and encourage citizens to travel locally by taking a series of measures. Infact tour operators too are urging the government to take proactive steps to increase tourist arrivals.
Indian Association of Tour Operators has asked the union government to restore the marketing budget for tourism promotion in overseas markets. “Besides a productivity linked incentive on the lines introduced for the manufacturing sector can be given to tour operators as that can help in earning precious foreign exchange. The government should also consider visa fee waiver as the resultant increase in numbers would easily offset the revenue lost in terms of visa fees,” IATO has said.
Outbound travel from India
While inbound travel to India is not yet recovered, outbound travel from India is showing growth compared to 2019. While budget friendly regional destinations continue to be a big draw, travel firms are also promoting experiential travel experiences.
Thomas Cook and SOTC have launched a range of Arctic tours covering destinations in Finland, Norway, Sweden and Russia. “We are encouraged by the demand that we are witnessing and this across segments,” said Rajeev Kale, president & country head (holidays), Thomas Cook India.
Saudia, Saudi Arabia’s national carrier, is offering special deals including 50 per cent off on a second ticket for business class travel. Saudi Arabia is also facilitating visas in 48 hours for Visa and Mastercard credit card holders at a week-long immersive event in Mumbai. These are part of a campaign to promote itself as a hospitable travel destination.
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Published on September 25, 2024
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