A houseboat in the backwaters of Kerala as part of the state's tourism. (Representative image)
Credit: iStock Photo
Bengaluru: A significant part of India’s tourism potential remains untapped, even as domestic tourism continues to anchor the sector, the Economic Survey said on Thursday.
Overall visits rose about 17.5% in 2024 over the previous year, and by nearly 52.7% during January–September 2025 compared with the corresponding period last year. “International Tourist Arrivals (ITAs), including foreign tourist arrivals (FTAs) and arrivals of non-resident Indians (NRIs), rose to 20.57 million, marking an increase of 8.9% over 2023, and 14.8% above pre-pandemic levels (2019),” the survey said.
However, political turmoil and geopolitical uncertainties in key source markets kept FTAs below pre-pandemic levels, with arrivals declining by about 11.8% during January-October 2025, compared with the same period last year. This trend mirrors broader patterns across the Asia-Pacific region and reflects global growth weakness.
According to Ministry of Tourism estimates, travel and tourism contributed 5.22% to GDP in FY24, nearing pre-pandemic levels, while supporting an estimated 8.46 crore direct and indirect jobs, or around 13.3% of total employment. Forex earnings from tourism rose to $35 billion in 2024, up 8.8% from 2023. Highlighting the sector’s labour-intensive nature and strong linkages with transport, hospitality and trade, the survey noted that “high-frequency hospitality indicators suggest sustained momentum, driven by domestic tourism, with hotel occupancy rates consistently exceeding 60% in recent years.”
Realising tourism’s full potential, however, hinges on implementation capacity at state and local levels. “In recent years, the Centre has strengthened the tourism framework by prioritising experience-based and sustainable destination development,” the survey said, citing initiatives such as Swadesh Darshan 2.0, the Challenge-Based Destination Development programme and continued investments under PRASHAD.
These have been complemented by campaigns like ‘Dekho Apna Desh’ and ‘Incredible India’, improved visa facilitation and expanded regional air connectivity under UDAN, boosting demand for Tier-2 and 3 destinations. The approach emphasises ease of travel, accommodation, local mobility, cleanliness, safety, service quality, wider use of digital tools and private sector participation.
“Indian airports can aspire to become global aviation hubs by promoting layovers and enhancing the transit experience for international passengers. Sustained global branding and promotion in source destinations will strengthen higher tourism demand,” it added.
The survey reiterated India’s untapped potential in niche segments, including long-distance hiking trails comparable to the Appalachian or Camino routes, leveraging ecological diversity, cultural heritage and pilgrimage corridors. It also flagged opportunities along India’s vast coastline, noting the near absence of marinas. A national marina development policy enabling private participation could unlock sailing, diving and leisure cruising, attract high-value tourism and generate employment and supplementary income in coastal regions, it said.