India misses the mark in the international travel market

In December 2023, Prime Minister Narendra Modi strolled across the picturesque sandy beaches of Lakshadweep. He even scuba-dived in the crystal-clear seawater. Many saw this as an effort to promote tourism in the union territory, hoping that the PM’s visit would herald a new wave of tourism in the archipelago.

Enquiries about accommodation, flights and other facilities at Lakshadweep began pouring in, through online channels and tour operators. However, many potential tourists were disappointed when their plans could not materialise due to poor connectivity with the mainland and limited accommodation options. Available accommodation options proved expensive when compared to Maldives — which Indian tourists wanted to avoid due to geopolitical tensions.

A year has passed since Modi’s visit and the island has remained the same. While the number of tent stays has increased to an extent, hotels and resorts can accommodate a total of 400 tourists per day. Three flights are now available instead of the single mainland flight, along with the same old cruise.

Credit: DH Illustration

Things are no different in Andaman and Nicobar islands.

The island does not even draw a fraction of the tourists that Malaysia attracts, despite having similar landscapes and tourism activities.

“On average, we receive around five to six lakh tourists per year, of which a maximum of 10% are foreign tourists,” says Mohan Vinod, president of the Andaman Association of Tour Operators. Malaysia saw nearly 2.25 crore visitors in 2024, including 10 lakh Indians, visiting its shores.

He says domestic tourist footfall has also fallen in the last couple of years. Indian travellers also prefer visiting Southeast Asian countries, which offer cheaper tour packages due to lower taxes, affordable flights and visa-free arrivals.

The decline in foreign tourists visiting Indian destinations, coupled with affluent Indian travellers favouring international trips, is not limited to these two island territories but reflects a nationwide trend.

Post-pandemic rebound

While leading global tourist destinations such as Dubai, France, Spain, Switzerland, the United States, China, Japan and Australia have rebounded from the pandemic, witnessing a 5 to 40% surge in international travellers, India has lagged behind. According to UN World Tourism Organisation data, foreign tourist arrivals (FTA) in India were still 8% lower, as of October 2024, compared to pre-pandemic levels in 2019.

According to data published by the Union Ministry of Tourism, 76.8 lakh foreign tourists visited the country between January and October 2024.

Footfall in this period was 2.8 per cent higher than it was in the corresponding period in 2023. However, it was 10.4 per cent lower than FTAs in 2019, when India recorded 86.11 lakh international tourist visits, in the same period.

Several factors have contributed to India’s foundering in emerging as a preferred travel destination for international tourists in the post-pandemic era.

Rajiv Mehra, president of the Indian Association of Tour Operators, lists some of the major reasons. “During the peak season, our hotel tariffs and domestic flight rates get exorbitantly high. Poor international connectivity from major tourist-generating countries and poor local conveyance are other setbacks. Finally, the government’s ‘Incredible India’ promotion in foreign countries lacks lustre,” he says.

“New competitors have emerged in the world, who are not only marketing their country aggressively on international forums but also providing better and newer experiences to visitors at a better budget,” he says. Global conflicts, including the Ukraine-Russia war, the Gaza war, unrest in Bangladesh and souring relationships with China have also impacted the Indian tourism sector.

In the 2024-25 Budget, the Union government allocated Rs 2,479 crore to the tourism sector. Of this, Rs 200 crore was earmarked for promotional activities — with Rs 30 crore allocated to attract international tourism.

On the domestic front, tourism is flourishing. Over 232 crore domestic tourists visited various tourist destinations in India in 2019. By 2023, these numbers increased to 250.9 crore. A department insider says a similar increasing trend could be seen in 2024 — with at least a 28% increase in year-on-year travel.

The Indian tourism sector, however, cannot solely sustain on domestic tourism and needs to see a recovery in foreign tourist footfall, according to industry experts.

“For tourism to truly flourish, a country must focus on both its destinations and the well-being of its people. When communities enjoy a good quality of life, they naturally create a welcoming and vibrant environment for visitors. A balanced tourism economy is key—strong and steady domestic travel, a healthy flow of international tourists that supports local businesses, and mindful management of outbound travel. But in India, finding this balance comes with its own set of challenges,” says Aditi Choudhary, assistant professor at the Indian Institute of Tourism and Travel Management, Noida.

She adds that international tourists do not just bring revenue but also help small businesses grow, create jobs, and strengthen India’s foreign exchange reserves, ultimately making the economy more resilient.

Till October last year, the country earned Rs 2.16 lakh crore in Foreign Exchanging Earning (FEE) due to international visitors. This was nearly 25.13% higher than earnings in 2019, when the FEE was Rs 1.73 lakh crore. Factoring in dollar-to-rupee valuations, experts say India’s actual FEE was 11% lesser compared to its 2019 earnings.

Despite this potential to generate revenue, tourism in India seems to be losing out to competition.

The country grapples with legacy issues including poorly maintained infrastructure, subpar tourist facilities, inadequate last-mile connectivity, insufficient hospitality workforce and poor cleanliness and sanitation at tourist destinations. These issues often discourage foreigners from visiting India as Southeast Asian countries like Sri Lanka and Dubai have hospitality services, hygiene and sanitation standards in place, making a mark in the international tourist market.

With better connectivity both by air and sea, easy visa facilities, and aggressive marketing of culture, cuisine, heritage and natural resources, these countries can attract tourists from the top visitor-generating countries such as the United States, China and European and Eastern countries.

Take, for instance, Karnataka, with the tagline ‘One state, many worlds’. Despite having diverse landscapes, culture, rich wildlife and culinary heritage, the state does not feature among the top 10 states attracting foreign tourists.

“Every year, the state organises Hampi Utsav, but foreign tourists are rarely aware. Unlike the Kutch Rann Utsav and the Theyyam ritual dance of Kerala, Hampi Utsav does not have fixed dates annually, a major drawback for promotion on international platforms. A majority of the audience during the programmes are locals and this makes Hampi Utsav just like any other district fest,” says Ravi, a Bengaluru-based senior tour operator.

He adds that the active participation of the government and tourism department, particularly with regard to promotion, is crucial. However, in the last decade, successive governments in Karnataka have been unable to achieve this.

A recent survey conducted by Booking.com stated that nearly 32% of potential tourists skipped visiting India over the fear of falling sick. Another 27% of international travellers avoided India over safety and security concerns. An equal number of tourists who visited India did not wish to revisit for the same reasons, the survey revealed.

Travel influencer Nivedit says that these safety concerns are all too real for backpackers and solo travellers. Experts also say that India is failing to provide a holistic experience for visitors.

“When a foreign visitor visits a place he wishes to experience a gamut of things, including its history, culture and cuisine of not just that particular location but its surroundings. We are failing to package out our tourist places to guests,” says Luvkush Mishra,

professor and director of the Institute of Tourism and Hotel Management, Dr B R Ambedkar University, Agra.

Stressing on promoting a tourist circuit rather than a single monument, he cites the example of Agra where the Taj Mahal is promoted over other historical places. “Taj Mahal has more or less become a flying visit destination for a majority of tourists. As tourists are not staying back in Agra, the local economy has been adversely impacted,” he says.

Neha Sharma, a travel influencer from Visakhapatnam, adds that most states in India are unable to promote sector-wise tourism that focuses on wellness, food, art, spirituality or nature.

Countries in Southeast Asia, as well as Dubai, Thailand and Sri Lanka are cashing in on this. “Dubai has emerged as a destination for recreation through its man-made marvels; Thailand and Malaysia are attracting lots of youth through its nightlife culture. Unfortunately for India, apart from Goa, I can not think of any other state that is substantially concentrating on their strong areas,” she says.

Another aspect discouraging foreign travellers is unkempt historical monuments. Even many Archaeological Survey of India (ASI)-protected monuments stand visibly neglected, owing to a lack of funds for maintenance.

As per media reports, historically significant places like Vijayapura, Bidar and Badami, which have centrally protected monuments, are not receiving sufficient funds for maintenance.

A limit

While developing infrastructure in and around the tourist destination and promoting tourism are important, experts also say that organic interest in tourism is essential.

“Several foreign countries like Spain and Italy are now turning averse to tourism due to overcrowding. A similar trend can be witnessed in Goa, where locals feel that their culture is under threat due to tourists,” says Pawan Gupta, a nodal officer at the Indian Institute of Tourism and Travel Management, Goa.

The large foreign tourist inflow also led Goans to increase the prices of accommodation and other facilities exorbitantly. As a result, the number of inbound tourists fell during last Christmas and New Year vacations.

According to Tourism Department data, around 10 lakh people visited Goa annually as of 2019. However, till October 2024, the state saw only 4.5 lakh tourists — nearly 60% lower.

However, the president of the Travel and Tourism Association of Goa, Jack Sukhija, feels that there is a negative picture of tourism in Goa, on social media platforms. “Though foreign travellers and affluent Indians may be choosing other destinations, tourist inflow to Goa is substantially good,” he says. The prices of resorts and hotels are market-driven and will get regulated based on tourist preferences, he adds.

Tourism Department officials in the union government too say that the sector is on the right path of recovery and 2024 tourism data will reflect the global trend of tourist inflow.

“We have reached our benchmark target and we might have performed well in November and December. Like the global market, tourism has recovered 98%, compared to pre-Covid levels. Our focus is on sustainable tourism and the quality of tourists is more important for us,” says Mugdha Sinha, director general of the Department of Tourism, Government of India.