India’s travel and tourism sector has bounced back robustly, according to the latest report from the World Travel and Tourism Council (WTTC). However, international travel spending in India remains below pre-Covid levels.
Key Highlights from the WTTC Report
Economic Contribution: The travel and tourism sector’s contribution to India’s GDP reached INR 19.13 trillion ($230 billion) in 2023, marking a nearly 10% increase over 2019 levels.
Employment Growth: Employment in the industry rose by 8%, now employing 43 million people.
Domestic Spending Surge: Domestic tourist spending hit INR 14.64 trillion ($175 billion) last year, a 15% increase from pre-Covid levels.
International Visitor Spending: Despite the domestic growth, international visitor spending is still over 14% below 2019 levels.
The Key Role of Domestic Tourism
Consulting firm McKinsey & Company has projected that India will become the fourth-largest domestic travel market by spending by 2030. This projection is echoed by Rikant Pittie, co-founder of online travel agency EaseMyTrip, who stated, “Domestic travel and the tourism sector have become the backbone of India’s economic growth, especially with the government’s focus on promoting India as a global destination equivalent.”
Recent data from aviation analytics firm OAG supports this optimism, indicating that India is now the third-largest domestic aviation market, following the U.S. and China. Domestic air passenger traffic in India for 2023-24 has also surpassed pre-Covid levels.
Hyatt Hotels CEO Mark Hoplamazian highlighted his company’s strategic focus on India’s domestic travelers, noting, “The country’s leisure travel market is primarily driven by Indians traveling within India and discovering the country.”
Arindam C Bahel, general manager of The Fern Brentwood Resort in Mussoorie, remarked, “The Indian market began to see a rebound since the end of last year, with the leisure hotel segment leading the way. Post-Covid, India inbound became the buzzword. Indian travelers also started finding India more appealing due to increased marketing efforts and high international airfares.”
Conclusion
India’s travel and tourism sector is experiencing a strong recovery, driven largely by domestic tourism. While international travel spending has yet to return to pre-Covid levels, the robust growth in domestic tourism underscores the sector’s resilience and its critical role in the country’s economic revival.