Inbound tourism is following epidemic levels as foreign tourist arrivals (FTAs) in January-June this year stood at 4.78 million, which is 90 percent of the first half of 2019, a report said on Wednesday.
However, rising forex earnings indicate that per capita income is higher, according to a report by Crisil Market Intelligence and Analytics.
The report said the post-pandemic recovery in India’s domestic tourism is bucking the global trend as in the first half of calendar 2024, FTAs ​​in the country stood at 4.78 million, about 90 percent of that in the first half of calendar 2019.
In comparison, globally, FTAs ​​in the first seven months of 2024 were at 96 percent of pre-Covid 2019 levels, which means India is behind the curve, it added.
The report indicated that the demand from Bangladesh has been reduced due to the current political situation and the suspension of direct flights from China which is affecting the tourist boom.
Both these countries have been a major source of tourists for India and accounted for 27 percent of FTAs ​​in 2019, it added.
Meanwhile, the report said countries like Qatar, Dubai, Vietnam and Sri Lanka are attracting tourists with low-cost options and favorable visa policies.
These areas have surpassed their pre-Covid levels, with Qatar FTAs ​​up 47 percent, Dubai 11 percent, Vietnam 4 percent and Sri Lanka 0.2 percent in the first half of the current calendar, the report said.
In addition, aggressive campaigns with emerging destinations such as Azerbaijan, Georgia and Kazakhstan are competing for tourist spending, it added.
In addition, the report revealed that when it comes to foreign exchange earnings (FEE) the picture is at a higher level, which increased by 23 percent in the first half of 2024 compared to the same period in 2019.
This suggests that tourists are spending more money during their visit on several things, including a 20 percent increase in five-star hotel prices between 2019 and 2024, increasing tourists’ preferences for luxury and disposable income where travelers indulge in premium services such as fine dining. , quality accommodations and unique cultural experiences, it said.
This shift in emphasis from quantity to quality of travel expenses is also reflected in the FEE per FTA, which has risen marginally from Rs 1.5 lakh in 2019 to Rs 2 lakh in the first half of 2024, a jump of almost one-third, Crisil Market Intelligence and Statistics report added.
Meanwhile, the report said the country’s outbound tourism is seeing a different trend with a 12 percent increase in Indian departures over pre-Covid levels in the first half of 2024.
Indian tourists are fast emerging as an important growth engine in global tourism, accounting for 2.4 percent of the world’s outbound market as of 2019, it said.
This growth is largely driven by economic recovery, which is also evident in tourism, the report said.
Indians are making more trips abroad, supported by rising disposable incomes that have made international travel more affordable and improved air connectivity and simplified visa procedures that have made foreign destinations more accessible, it said.
Changing travel preferences are also impacting outbound travel as demand for alternatives, such as luxury retreats and adventure travel, is growing, it added.
(Only the headline and image for this report may have been reused by Business Standard staff; other content is automatically generated from the trade feed.)
First published: Sep 25 2024 | 5:56 PM IST