Indians are travelling the world. The country’s economic rise and higher disposable incomes have resulted in more spending on overseas travel.
The growing middle class in India wants to travel the globe. Along with other factors, the easing of visa rules by many countries, including Thailand and Sri Lanka, is giving wings to this desire.
Let’s take a closer look.
Indians exploring their love for travel
2024 is proving to be a record-breaking year for the Indian travel industry. Data from the Mastercard Economics Institute’s May report titled Travel Trends 2024: Breaking Boundaries revealed that Indian airports received 97 million (9.7 crore) passengers in the first quarter of 2024.
Both domestic and international tourism have benefited. While domestic travel saw a significant uptick of 21 per cent in passenger traffic compared to 2019, international travel rose by 4 per cent.
“More Indians are travelling than at any time in history,” the Mastercard report said.
Indians shelled out $22.9 billion on overseas travel in 2019. As per forecasts, this figure will touch $42 billion this year.
According to McKinsey & Company, Indians made about 13 million (1.3 crore) trips to foreign destinations in 2022. This is estimated to jump to more than 80 million (8 crore) annually by 2040.
Indian travellers could make 5 billion (500 crore) trips in 2030, of which 50 million (5 crore) could be outbound departures, as per the Centre for Asia Pacific Aviation.
The report by Booking.com and McKinsey predicts India’s total travel expenditure will reach $410 billion in 2030, with the country’s citizens likely to become the world’s fourth-largest spenders on foreign travel.
Where are Indians going?
Countries in Southeast Asia and West Asia have been vying to attract Indian tourists.
As per an Economic Times (ET) report, Rajesh Magow, group CEO of MakeMyTrip, said the top international destinations for Indians last year were the United Arab Emirates (UAE),
Thailand, Singapore, Indonesia, Maldives, Hong Kong, United States, Nepal, United Kingdom, Canada and Vietnam.
Films, TV and OTT are also influencing Indians’ decisions when choosing to travel abroad. As per Skyscanner’s Travel Trends 2024 report, there was a 23 per cent month-on-month surge in Paris searches after the third season of the hit drama Emily in Paris came out in December 2022.
As per the Mastercard Economics Institute’s report, about 59 per cent more Indians travelled to the US than in 2019. A Brand USA market survey estimates Indian arrivals would reach 1.8 million (18 lakh) this year and 2.3 million (23 lakh) in 2030.
Japan has witnessed a 53 per cent rise in Indian visitors compared to 2019. Vietnam has also been successful in alluring Indian travellers, with a 248 per cent spike in passenger traffic to the Southeast Asian country, noted the Mastercard report.
What explains this surge in travel?
India’s burgeoning middle class, loosening visa rules and a younger population keen on travelling have fuelled the surge in international departures from the country.
India’s middle class is expected to make up 47 per cent of its population by 2030. By that year, the country is estimated to become the fourth largest global spender on travel, as per the Booking.com-McKinsey & Company report.
People between the ages of 25 and 34 are most interested in travel. India’s youth population is set to reach 420 million (42 crore) this year.
The number of passport holders in India increased from 52 million (5.2 crore) a decade ago to 93 million (9.3 crore) this year, as per The Economist report. While Indian passports are weak, the situation is improving as the country gets wealthier.
The relaxation in visa requirements also contributed to India’s international travel growth last year, Aloke Bajpai, CEO of ixigo, told ET.
Thailand, Malaysia, Iran, Kenya, Vietnam and Sri Lanka have suspended visa requirements for Indians. Indonesia is also planning to ease visa rules for Indians.
Tourists visit the Big Buddha statue in Phuket,
In April,
Japan simplified the e-visa process for Indians. The European Union eased entry restrictions for Indians in the same month. The UAE is offering Indians multiple-entry visas.
The complicated visa processes of rich Western countries deter tourists, with some even refusing to visit.
“When a country relaxes its visa regulations, the adjustment not only facilitates entry for foreign visitors but also sends a strong signal of hospitality,” Xiang Li, a tourism professor at the University of Central Florida, told Bloomberg.
Some countries are recruiting Bollywood stars as brand ambassadors to lure Indian tourists.
“Direct flights, hassle-free visa, economical fares, a range of accommodation options and a broad canvas of experiences—any destination that is able to get this mix right will be able to attract travellers from India,” MakeMyTrip’s Magow told ET.
As The Economist mentioned, “The countries that welcome Indians will enjoy both the economic benefits and the cultural soft power that tourism affords.”
Direct flights are a major factor driving Indian tourists to international destinations. Thirty-one cities in India offer international flights to 322 destinations, a rise from 23 and 272 in 2015, reported The Economist. These figures are expected to increase further in the coming years.
“The development of airport infrastructure in Tier-2 and -3 cities, increased connectivity and affordable air travel options have contributed to the growth of air travel and first-time flyers in metros as well as non-metro cities,” Bajpai of ixigo told ET.
As people’s purchasing power increases, they are more likely to spend on tourism. With Indians having more money to spare, their travel appetite seems to have just begun.
With inputs from agencies
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