New Delhi: According to a report released on Wednesday, Indian tourists are swiftly emerging as a significant growth engine for global tourism, with a 12% increase in the first half of this year compared to the same period in 2019 before the pandemic.
The picture is even brighter regarding foreign exchange earnings (FEE), which saw a significant 23 percent rise in the first half of 2024 over the same period in 2019, according to Crisil Market Intelligence and Analytics. This substantial increase in FEE is a testament to the economic benefits of Indian tourists travelling abroad.
In the first half of the calendar of 2024, foreign tourist arrivals (FTAs) in the country stood at 4.78 million, about 90 percent of that in the first half of the calendar 2019. The rise in forex earnings suggests tourists are spending more during their visits, which can be linked to several factors, including a 20 percent rise in five-star hotel rates between 2019 and 2024, increasing tourist preference for luxury experiences, and higher disposable incomes with travellers indulging in premium services such as fine dining, high-end accommodations and distinctive cultural experiences. This shift towards luxury travel experiences is an exciting trend in the tourism industry.
According to the report, this shift in priority from quantity to quality in travel expenditures is also reflected in fee per FTA, which increased steadily from Rs 1.5 lakh in 2019 to Rs 2 lakh in the first half of 2024, a nearly one-third jump.
“The K-shaped economic recovery seen after the scourge subsided seems to be playing out in tourism as well. Improved airline connectivity and streamlined visa processes have made foreign destinations more accessible,” said Pushan Sharma, Director-Research at CRISIL Market Intelligence and Analytics.
Changing travel preferences also influence outbound travel as demand for unique experiences, such as wellness retreats and adventure trips, is rising. According to the report, another factor aiding growth is the emergence of cost-effective international destinations. It said that India needs a two-pronged action plan to enhance the contribution of tourism to GDP—first, it needs to position itself as a top global tourist destination by investing in infrastructure, marketing, and service quality, and second, it needs to woo its potential outbound travellers to prefer domestic destinations by offering unique experiences and competitive pricing.
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–IANS
