US hotels and travel companies are capitalizing on a significant increase in Indian tourism to offset weaker demand from East Asia, where visitor numbers remain below pre-pandemic levels. Data from the US National Trade and Tourism Office (NTTO) reveals that nearly 1.9 million Indian tourists visited the United States in the first 10 months of 2024, marking a 48% rise from 2019. This growth is fueled by a 50% increase in business visas and a 43.5% rise in leisure travel.
The expanding Indian middle class, coupled with larger travel budgets and increased flight availability, has propelled this surge. Meanwhile, visitor numbers from China, Japan, and South Korea have sharply declined—down 44.5%, 50.8%, and 23.9%, respectively, from 2019 levels. Wealthy East Asian tourists have largely turned to regional travel in Southeast Asia, bypassing long-haul flights to the US.
While European travelers from the UK, Germany, and France have returned, overall tourism remains sluggish, with industry giants like Hilton and Airbnb bracing for weaker revenues. Laura Lee Blake, CEO of the Asian-American Hotel Owners Association, noted that Indian tourists are helping fill the gap left by reduced East Asian visitation. They are also exploring smaller cities, benefiting destinations outside major metropolitan areas.
Some hotels are adapting to the tastes of Indian visitors by offering chai and samosas in the lobby, along with Indian TV channels in guest rooms. Travel agency Viator reported a 50% increase in bookings from Indian travelers in 2024, with bookings tripling since 2019. Additionally, flight capacity between India and the US rose 42.3% in 2024, according to OAG Aviation.
Looking ahead to 2025, industry experts predict further growth in occupancy rates and revenue, driven by a younger, experience-focused demographic from India. Grzegorz Kowalski, CEO of Tripoffice.com, anticipates continued positive momentum for the sector.
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