For international travellers, India remains a distant destination
China, Thailand and Malaysia hosted more international travellers than India in 2023
India’s tourism sector is yet to recover from the pandemic years, with international travellers who bring in higher tourism dollars preferring other countries in the Asia-Pacific region over domestic destinations.
Despite a resurgence of global travel last year, India welcomed only about 7.24 million international travellers in 2023, according to the ‘India State Ranking Survey’ by hospitality consultancy Hotelivate and the World Travel and Tourism Council, India Initiative (WTTCII).
Prior to the pandemic, in FY20, India received about 10.93 million international travellers, as per India’s tourism ministry. Of them, about 6.98 million were non-resident Indians visiting family and friends back home.
Over the years, India has sharply reduced its spending on international marketing campaigns. The country slashed its budget for its flagship ‘Incredible India’ campaign from ₹100 crore in FY23 to a mere ₹3 crore for the ongoing financial year.
India’s share of international travellers last year accounted for only about 3.13% of the 230 million visitors to the Asia-Pacific region in 2023.
China received 35.5 million international tourists in 2023, followed by Thailand at 28.04 million and Malaysia at 14.47 million, according to the report.
Overall, though, the Asia-Pacific region is yet to recover to its pre-pandemic levels, with international travellers remaining well below the 347.7 million arrivals recorded in 2018.
That said, 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, according to the WTTCII-Hotelivate report.
In India, the travel and tourism sector’s direct economic contribution stood at $247 billion in 2022, with domestic travel accounting for 87% of that, according to the report.
“India continues to grow and become a prominent tourism destination with the sector contributing 6% to the country’s overall GDP (in 2023), higher than the average for the Asia-Pacific region,” the report added.
Among Indian states, Gujarat received the highest number of international travellers in 2022/23, at 1.78 million visitors, according to the WTTCII-Hotelivate 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.
Increasing supply of hotel rooms
India’s hospitality sector has seen a significant rise in branded hotels since FY19, with a 20% increase translating to nearly 28,000 new rooms.
Gujarat, Maharashtra, and Rajasthan led the pack, adding 5,200, 3,100, and 2,700 rooms, respectively, over that period. Goa and Uttarakhand were close behind, each adding around 2,000 rooms.
Maharashtra, Karnataka, Delhi, Tamil Nadu, and Gujarat boast the highest number of branded hotel rooms. In terms of room density per square kilometre, Delhi takes the top spot with nearly 1,500 rooms per 100 sq.km., followed by Goa, Haryana, Kerala, and Tamil Nadu.
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Business NewsIndustryFor international travellers, India remains a distant destination
First Published:12 Mar 2024, 05:58 PM IST
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