As global travel undergoes a transformative shift, India’s inbound tourism stands at a critical crossroads. Will it adapt and thrive or struggle to reclaim its legendary momentum? In this exclusive interview, Mugdha Sinha, Director General of Tourism, Government of India, reflects on the trajectory of India’s inbound tourism industry. With a deep understanding of the forces shaping this evolution and a keen eye on the shifting dynamics of global travel, Sinha outlines the strategies that must fuel India’s tourism resurgence and highlight the emerging trends that will drive its growth and international prominence in the years ahead.
With over 26 years of experience in public policy, governance, and international trade, Sinha brings a wealth of knowledge. As a seasoned leader in the Indian civil services, she has held key positions in various ministries, making her uniquely equipped to lead India’s tourism sector into a new era. Sinha’s tenure as Joint Secretary of Culture in the Indian Administrative Service (IAS), Government of India, has enriched her perspective on India’s delicately woven cultural fabric. This experience now serves as a powerful asset in her current role, giving her a nuanced understanding of the diverse forces that shape the nation’s tourism landscape.
India’s Tourism Recovery: A Decade-Long Cycle in Motion
Sinha reflects on the trajectory of India’s inbound tourism, which peaked in 2008 but suffered a sharp decline following the Lehman Brothers financial crisis in the same year. This downturn took nearly a decade to recover from. COVID-19 hit the world harder, yet the resurgence is visible to everyone. She says, “As we enter the third decade of the 21st century, projections suggest that India’s tourism industry will significantly peak by 2028-29. Foreign tourist arrivals have been steadily rising over the past four years. While 2024 remains a year of calibration, we have clearly performed better. According to the UN Tourism Barometer, global tourism has rebounded to 88.89 per cent of pre-COVID levels, with India close behind at 87.1 per cent. While the Asia-Pacific region lags at 64-65 per cent, India continues to perform strongly.”
Notably, domestic travel has surged, with 2.3 billion trips, outpacing global cross-border travel. Landmark attractions like Kevadiya’s colossal Statue of Unity and the Mahakumbh, which attracted 666 million visitors, reinforce India’s dominance in the travel sector and drive domestic tourism across state borders.
Post-COVID, two significant travel trends have emerged – ‘revenge tourism’, which peaked but faded by 2023, and a notable rise in domestic, religious, and spiritual tourism. Sinha adds, “Despite ongoing recovery, the hospitality sector has seen two strong years, with occupancy, average room rates, and per-room profitability reaching levels last seen in 2008. Current per-room profits range from Rs 5,000 to Rs 7,000, signalling robust performance. Hotel deals and IPOs are increasing, and India’s hotel inventory, currently at 1.83 million rooms, is set to grow to 3 million by 2029 and 4.1 million by 2030-31, reflecting rapid expansion.”
She further highlights that India’s $3.9 trillion GDP is on track to reach $5 trillion soon and $30 trillion by 2047. Rising incomes and a growing middle class are driving domestic travel, particularly in pilgrim tourism.
With 65 per cent of India’s population under 35, the country’s young workforce is reshaping travel trends. Millennials, who comprise 35 per cent of the population and 46 per cent of the working-age group, prioritise experiences over hustle culture. Sinha notes, “Trends like FOMO (Fear of Missing Out) and JOMO (Joy of Missing Out) are driving new travel behaviours, one fuelled by social media, the other by meaningful, offbeat journeys.” Looking ahead to 2025, concepts like #SleepTourism #Digitalnomadism and #Workcations are set to gain traction.
Key Principle: The 3A Triangulation
Sharing her belief in the 3A Triangulation principle, Sinha explains, “Travel decisions revolve around three key factors: Attraction, Accessibility, and Accommodation. This triangulation is driving massive infrastructure expansion, enhancing connectivity, and boosting tourism. Add the fourth ‘A—Amenities’ to the original three, and you address safety, hygiene, perception, and sentiment, particularly for solo travellers.”
India has built 150,000 km of roads, 18 cable cars for inaccessible pilgrim destinations, and key rail routes like Maharaja Express and Bharat Gaurav, while high-speed trains like Vande Bharat and the 1000 km Metros in key cities improve multimodal access. Aviation is also surging, with airports set to grow from 157 to 350 and over 900 plus new aircraft on order. She adds, “Despite the inevitable fluctuations in supply and demand, the overall outlook remains highly optimistic. The government is making significant investments, with Rs 12,000 crore allocated across four key tourism schemes, Swadesh 2, PRASAD 2, CBDD, and SASCI. Additionally, 120 new destinations are being developed under the Modified UDAN Scheme, further solidifying India’s position as a global travel powerhouse.” Besides, in 50 select destinations, hotels will receive the benefits of Harmonised Infrastructure Industry.
Yet Sinha points out, integrated bundling, seamless passes linking attractions, transport, and stays with inbuilt discounts, remains a missing piece. This seamless travel experience is still evolving but holds immense potential. Achieving it requires a strategic shift, one driven by industry-wide collaboration and innovation to deliver frictionless, value-driven journeys. If executed effectively, this approach could redefine how travellers experience India, making tourism more accessible, efficient, and rewarding. Use of AI, Deep ML, LLM, and Gaussian Splat technologies will elevate India to the next level by easing travel and tourism decision making, especially in India, where we are spoilt for choice, due to our rich diversity of product portfolio.
Marketing: The Missing Link in Our Tourism Growth
In an era where attention is currency, India’s tourism sector must embrace bold, data-driven marketing to stay ahead. AI-driven iteration can revolutionise travel promotion through immersive storytelling, strategic PR, and cutting-edge consumer engagement. Sinha emphasises, “Today, marketing is a key strategic tool. The marketing landscape is no longer traditional but anamorphic, emotional, and quantum-driven. To lead on the global stage, India must harness AI-powered insights, decoding volumetric data, viral narratives, and predictive trends to reshape how destinations connect with travellers. Tourism is no longer just an industry, instead, it is an experience-driven force that thrives on agility, innovation, and adaptability, qualities that will define India’s journey to becoming a tourism powerhouse.
Commenting on current marketing trends, Mugdha highlights how gamification and emotional storytelling reflect the evolving direction of the industry. Citing Herbert Simon’s concept of the ‘attention economy,’ she explains that in today’s marketplace, holding a consumer’s attention is key, “If I can hold your attention, I can go deeper into your pocket because money follows attention.”
Data Analytics: Mapping the Future
Effective policymaking hinges on reliable data, as accurate projections for the future are rendered incapable without it. “By proactively shaping policies, we can move beyond reactive regulations. A good policymaker anticipates trends, rather than just responding to them.”
This approach is refined through extensive state-level surveys. For instance, a study of 1,286 hotels across 33 districts in Telangana revealed that 601 are concentrated in Hyderabad. Sinha shared, “We identified Hyderabad as Telangana’s tourism hub, with the highest exit points, airports, railway stations, and bus terminals, alongside ten major attractions drawing the most visitors. Neighbouring districts like Ranga Reddy play a crucial role in the state’s tourism landscape. Mapping tools highlight such high-density zones where accommodation, accessibility, and attractions converge, making them natural tourism hotspots.”
She further explains, “I use the UTSAV portal to monitor state-specific festival and events data monthly. This tool can be used to pinpoint key festivals and events to build personalised itineraries around them and to promote India as a year-round destination. By leveraging data, we can move beyond a one-size-fits-all approach to offer tailored DIY travel experiences and expand our tourism offerings.” She also emphasises the need to use India’s festival, fairs, and events inventory to create unique IPs that can be monetised as iconic products with high recall value in the arena of sports, music concerts or gastronomy to attract global mass affluent audiences with high spending power.
Meanwhile, lower-traffic areas present nascent opportunities for new developments, from detour destinations and off-the-beaten-track hideaways to solo travel initiatives and rural tourism experiences. Heat maps also guide strategic decisions on airport placements, ensuring investments target underserved regions rather than oversaturating well-developed districts.
Tour Operators: Growth Catalysts
Tour operators are pivotal in shaping India’s evolving travel landscape and driving foreign and domestic tourism. Sinha asserts, “As a ministry, by strengthening our collaboration with them, we can ensure that India continues to grow as a premier destination. They invest significant resources and expertise in creating bespoke itineraries, and we must align with them. They are on the frontlines as the foot soldiers of my ministry and the most important part of our industry. It is our responsibility to support them in every way possible. Since joining the ministry, building relationships with tour operators has been a top priority. Through engaging with industry leaders at events like the WTM, I have gained invaluable, often overlooked insights. Understanding their business is crucial to shaping effective policies and strategies.”
“We are organising a workshop in April to showcase our initiatives and better understand the operators’ offerings, focusing on collecting data to build future strategies. This collaboration is key, as tour operators hold essential data that helps steer tourism planning,” she announces.
While India attracts millions of visitors, outbound tourism currently outpaces inbound tourism by three to one. The goal is to bridge this gap, and Sinha observes that strategic marketing efforts, in sound partnership with tour operators, are key to driving more footfalls to India.
Overcoming Challenges: Inbound Tourism Promotion
Addressing concerns about the limited promotion of inbound tourism in India, she emphasises the need to look forward rather than dwell on past shortcomings. “We cannot change what has already happened, but we can surely look ahead,” she states, acknowledging the shift in global marketing strategies. Even with the closure of the Ministry of Tourism’s overseas offices, she highlights that Indian Missions abroad and Representative Agencies must continue their work, adapting to the changing landscape.
Sinha highlights that while the essence of the work remains the same, the playbook has been rewritten. The core objectives remain unchanged, but the tools and methods have evolved, redefining traditional approaches. She notes, “Today, you have social media, digital media, and virtual offices. The focus must be on marketing your product correctly.” She stresses the importance of combining data, technology and marketing, pointing out that these three tools must be understood and used effectively to reach the desired goals. Hence, a redefined playbook calls for bold, innovative strategies in a reimagined world.
Reflecting on her legacy, Sinha hopes it will inspire action over inertia, driving progress rather than merely institutionalising success. She stresses the need for transformation in business practices to keep pace with a rapidly evolving world. “The box has collapsed, and the template is gone,” she says, pointing to the seismic shifts brought on by virtual spaces and co-working environments and a vital need to incorporate that into tourism practices. She resolutely advocates for this change to be mirrored in government operations, especially in capital deployment and re-energised marketing efforts. “The results may not be immediate, but I am planting the seeds for lasting change,” she says. Quoting Prime Minister Narendra Modi, she adds, the imperative to balance ‘Vikas bhi, Virast bhi’ in the 5T talisman of-Talent, Tradition, Trade, Technology and Tourism, with focus of sustainable itineraries, leisure and MICE tourism, women, youth and local communities led responsible tourism for its transformational role in contribution to economy and local employment. With a vision rooted in innovation, collaboration, bold strategy, and precise future planning, Sinha believes this vision will steer India’s tourism industry toward a new era of global prominence.
