Domestic tourism powering travel boom, but foreign visitor spending flat, says apex tourism body

As the world navigates the war in West Asia, India’s dependence on domestic tourism is growing, while spending by international visitors has remained flat over the last seven years, since pre-covid levels in 2019.

The World Travel & Tourism Council (WTTC), a global travel and tourism industry body, said international visitor spending has stayed flat at ₹2.9 trillion ($32.9 billion) in 2025, almost identical to 2019 despite an 8% increase over the previous year. This year too, in 2026, the number is expected to increase by only 15.3% to ₹3.3 trillion, or $37.9 billion, over 2019, the body said. In fact, the rupee has devalued by approximately 26.92% against the US dollar from 2019 to July 2026.

In contrast, domestic spending on tourism has risen nearly 37% since 2019 to ₹17.7 trillion ($202.5 billion), suggesting that the country's homegrown travel market is going from strength to strength. "The opportunity for India is to capture a fair share of international spend. It's not capturing this enough. The share is very small for the size of the potential and the size of the country," Gloria Guevara, chairperson of the World Travel & Tourism Council, said, speaking to Mint. Guevera is attending the Federation of Associations in Indian Tourism & Hospitality (FAITH) conclave in Delhi this week, which is an annual policy and strategy gathering for the travel, tourism, and hospitality sectors.

Domestic spending is forecast to touch ₹19 trillion ($217.6 billion), nearly 47% above pre-pandemic levels this year. The imbalance is also reflected in the structure of India's tourism economy.

India has the ingredients, not the plan

According to the Madrid-based tourism body, domestic travellers account for 86% of tourism spending in India, with international visitors contributing the remaining 14%. Guevara said India's tourism fundamentals compare favourably with leading global destinations, but the country needs a coordinated strategy to convert its strengths into higher inbound tourist arrivals and spending.

"You have the culture, diversity, gastronomy and hospitality. You have everything, but what you need is a joint plan between the government and the private sector,” she added. She said making travel easier through simpler visa rules, expanding international air connectivity and promoting India in priority overseas markets would be critical to attracting more foreign visitors.

"We see the countries that are growing faster. They have visa waivers for around 70 countries. India has only three. You need to make it easier for people to come here. My understanding is that the private sector is very fragmented. It needs to be united, and join forces with the government. The markets that are moving faster have one entity that helps organise the industry and speaks with one voice," Guevara said.

The sector supported 46.2 million jobs, or 10.8% of total employment, last year, up 16% from 2019. WTTC expects tourism employment to rise to 48.1 million in 2026 and create 15.4 million new jobs over the next decade, underscoring the economic opportunity from expanding inbound tourism alongside the country's strong domestic travel market.

Travel continues to outpace the broader global economy, and WTTC estimates global travel and tourism grew 4.1% in 2025, compared with 2.8% growth in the overall economy, contributing $11.6 trillion to global GDP. The sector is forecast to expand to $12 trillion in 2026.

The country’s travel and tourism sector contributed ₹23 lakh crore ($263.6 billion), or 6.6% of GDP, in 2025, up more than 30% from 2019. This contribution is expected to rise to ₹24.9 trillion ($286.1 billion) in 2026, about 41% above pre-pandemic levels. Employment in the sector is projected to reach 48.1 million next year, around 21% higher than in 2019.

Guevara said Asia-Pacific remains the world's fastest-growing tourism region, expanding 8.6%, with countries such as Japan benefiting from coordinated destination marketing and easier access for international travellers.

Middle East war

Guevara said geopolitical tensions in the Middle East, also known as West Asia, have slowed the recovery in international travel by disrupting airline capacity. "The Middle East provided one in every seven international airline seats," she said, adding that insurance-related restrictions have prevented some foreign carriers from fully restoring services to the region, affecting global capacity and delaying the recovery in international visitor spending.

Rather than viewing this as a short-term opportunity, India should focus on expanding its own international connectivity, she said, noting that sustainable airline routes require both inbound and outbound traffic. "India needs to increase connectivity. A country of this size doesn't have enough connectivity. Airlines follow the maths. You need both inbound and outbound traffic to make routes viable," Guevara said.