India Emerges as a Tourism Powerhouse, with Most Travelers Staying Domestically
India is becoming a giant in the tourism sector, with more and more Indian travelers taking leisure trips within their own country. According to Booking.com and McKinsey, Indian travelers took 1.7 billion leisure trips in 2022, but only about 1% traveled abroad. This trend is expected to continue, as by 2030, 99% of the projected 5 billion leisure trips by Indian travelers will be within the country.
With India set to be the fourth-largest global travel spender by 2030, the rise in domestic travel is largely due to a growing middle-income population with increasing earnings, as well as a young population that is forecasted to double its consumption of goods and services by 2030. The travel and tourism spending in India is expected to surge to $410 billion by 2030, more than 170% from $150 billion in 2019.
Top destinations for Indian travelers within their own country include New Delhi, Bengaluru, Mumbai, Chennai, Pune, Hyderabad, Gurugram, Jaipur, Kochi, and Kolkata, according to McKinsey. The report also noted that Indian travelers show a growing interest in discovering smaller urban spots in Tier 2 and Tier 3 cities. International hotel chains are taking notice of this trend and are focusing on expansion in these smaller cities.
The growing interest in traveling to smaller Indian cities is being attributed to the transportation infrastructure boost that is underway, as well as the planned increase to capital expenditures by India’s finance ministry, leading to a surge in airline orders of over 1,000 new aircraft. According to McKinsey, this will lead to a dramatic change in the travel landscape in India, with a new wave of travelers visiting smaller towns.
While Indian tourists are mostly traveling domestically, for those who are traveling abroad, the top destinations include Dubai, Bangkok, Singapore, London, Paris, Ho Chi Minh City, Ubud, Hanoi, Phuket, and Kathmandu.
India’s travel landscape is evolving, and with a rising middle-class population and improved infrastructure, the country is poised to become a leading player in the global travel and tourism industry.