Despite the vast opportunities that inbound tourism offers, the budget has continued to underfund and overlook its true value for the past few years, leaving India’s tourism aspirations unfulfilled and its global competitiveness at risk.
In recent years, global international travel has witnessed significant growth, and India is no exception, with outbound Indian travellers steadily rising year after year. However, the outlook is less encouraging when it comes to foreign tourists visiting India. Despite its vast potential as a premier travel destination, India continues to see lower-than-expected foreign tourist arrivals (FTAs), raising concerns about the country’s inbound tourism sector.
Incredible India’s Inbound Tourism Stagnation
Indian inbound travel has not yet reached its full potential despite India’s capacity and stature as an international destination. While successive governments have made efforts to promote tourism, these efforts have lacked consistency and have not yielded substantial results. The “Incredible India” campaign was a game-changer, but it has outlived its effectiveness. Increased competition from other Asian destinations, changes in tourist demand, and the shift in demographics have made the campaign less impactful.
Consecutive union budgets have also been a setback for the inbound tourism industry. India has not prioritised inbound tourism as a key growth driver for some time. While India’s domestic market offers a colossal consumption capacity for most industries, including tourism, the benefits of inbound tourism are unique and essential. Inbound tourism generates foreign exchange earnings, improves the balance of payments, and enhances India’s international soft power. These benefits cannot be derived from domestic or outbound tourism.
India has estimated that by 2047, tourism will contribute around US$3 trillion to its GDP. To achieve this aspiration, India must attract high-spending inbound tourists. India should view tourism not only as an economic activity but also as a tool for asserting its soft power. Only then will inbound tourism be considered a priority.
Unfortunately, the annual union budget rarely includes substantial allocations or mentions for the inbound tourism industry. This neglect hinders India’s ability to attract inbound tourists, whose numbers have stagnated for a long time.
Union Budget 2025: A Setback for Inbound Tourism Again
The Union Budget for the fiscal year 2025-26, while containing positive announcements such as relaxed visa regulations for some countries, a focus on 50 tourist destinations, and an infrastructure push, has also dealt a blow to the tourism industry, particularly the inbound sector. The budget includes only a slight 4 per cent increase in the allocation for tourism, which is less than India’s inflation rate. Furthermore, the international marketing budget for tourism has been reduced to a mere Rs 30 million, a 97 per cent reduction of the already limited budget.
This move by the Indian government is perplexing and suggests a lack of interest in attracting inbound tourists or earning foreign exchange through tourism. It contradicts the government’s stated goal of making India a global hub and doubling foreign tourist arrivals. Yet again, this year’s budget failed to mention the setting up of a tourism board, which could have addressed many issues, particularly unplanned marketing and India’s renewed push in the foreign markets.
The Need for Effective Marketing and Market Research
Tourism, and particularly inbound tourism, hinges on effective marketing. Unfortunately, while seemingly effective, our current tourism policies lack clarity and a deep understanding of marketing principles. There is a noticeable absence of market research, which is crucial for understanding the market and formulating a successful strategy. These shortcomings need to be addressed to maximise the impact of our efforts.
Additionally, the allocation of infrastructure budgets has often been conflated with tourism budgets, undermining the importance of dedicated funding for tourism initiatives. The closure of India’s tourism marketing offices worldwide and the transfer of this responsibility to Indian missions abroad have also been detrimental. While Indian missions are undoubtedly competent, they may not possess the specialised knowledge required for tourism promotion and are often burdened with other responsibilities.
Optimism for the Future
While many countries have surpassed their pre-pandemic tourism figures, India has yet to reach 2019 levels. This downtrend necessitates a more robust and aggressive strategy rather than the current approach of ignorance and denial.
In India, we often overlook the specialised nature of tourism as an economic activity. The recent focus on overall tourist numbers, without distinguishing between domestic and foreign tourists, further hinders our ability to develop effective strategies. Accurate data collection and analysis are essential for informed decision-making in the tourism sector.
Modern tourism extends beyond history and culture. Regardless of our rich heritage and attractive destinations, a well-planned and consistent marketing strategy is crucial for attracting international travellers to India. The Union budget is a critical first step in allocating funds and outlining a clear roadmap for tourism development.
Despite the challenges, the tourism industry in India remains optimistic, its optimism is of the level that in spite of tourism not being classified as an industry, calls itself an ‘industry’. We enter another year with optimism and hope that it will pave the way for a brighter future for inbound tourism in India.
About the Author: Prateek Hira is the President and CEO of Tornos and heads multiple tour companies in India and internationally. He chairs tourism associations and FICCI’s Tourism Committee in Uttar Pradesh. An accomplished tourism researcher and educator, Prateek sits on the boards of various universities and teaches tourism management at institutions across India and the world.
, raising concerns about the country's inbound tourism sector.){kind=link}