NEW DELHI: India’s tourism sector is yet to recover from the pandemic years, with international travelers who bring in higher tourism dollars preferring other countries in the Asia-Pacific region over domestic destinations.
According to the India State Ranking Survey by hospitality consultancy Hotelivate and The World Travel & Tourism Council (WTTC) India welcomed only around 7.24 million international travelers in 2023.
As per India’s tourism ministry, before the pandemic, in FY20, India received about 10.93 million international travelers. From them, about 6.98 million were non-resident Indians visiting family and friends back home.
Over the years, India has suddenly dropped its spending on international marketing campaigns. The country decreased its budget for its flagship, Incredible India campaign from ₹100 crore in FY23 to a mere ₹3 crore for the ongoing financial year.
Last year India’s share of international travelers accounted for only about 3.13% of the 230 million visitors to the Asia-Pacific region in 2023.
According to the report, in 2023, China received 35.5 million international tourists followed by Thailand at 28.04 million and Malaysia at 14.47 million.
Overall, though, the Asia-Pacific region is yet to recover to its pre-pandemic levels, with international travelers remaining well below the 347.7 million arrivals recorded in 2018.
According to the Hotelivate-WTTC report, the travel and tourism sector’s contribution to the overall economy of the Asia-Pacific region is estimated to have doubled from $1.3 trillion in FY22 to $2.6 trillion in FY23.
In India, in 2022 the travel and tourism sector’s direct economic contribution stood at $247 billion, with domestic travel accounting for 87% of that.
In 2023, India continues to grow and become a prominent tourism destination with the sector contributing 6% to the country’s overall GDP which is higher than the average for the Asia-Pacific region.
Among Indian states, in 2022/23 Gujarat received the highest number of international travelers, at 1.78 million visitors, according to the Hotelivate-WTTC report. The state was followed by Maharashtra with 1.5 million visitors and West Bengal with about 1.04 million international arrivals.
Goa was at a distant 12th on the list, receiving about 175,000 international visitors, and Kerala was at 8th with about 346,000 overseas visitors.
India’s hospitality sector has seen a significant increase in branded hotels since FY19, with a 20% increase translating to almost 28,000 new rooms.
Gujarat, Maharashtra, and Rajasthan led the pack, adding 5,200, 3,100, and 2,700 rooms over that period. Goa and Uttarakhand were close behind, each adding around 2,000 rooms.
Gujarat, Tamil Nadu, Karnataka, Maharashtra, and Delhi boast the highest number of branded hotel rooms. Concerning room density per square kilometer, Delhi takes the top spot with about 1,500 rooms per 100 sq.km, followed by Tamil Nadu, Haryana, Kerala, and Goa.
