2024-09-13 03:34:29
Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Priyanshi Duneja is one of the outward-looking Indians who represent the next big thing in travel: the emergence of her country’s middle class as a driver of the global tourism industry.
The New Delhi resident plans to take her son to Singapore next month, where they will celebrate his birthday by visiting Universal Studios, water parks and doing other “kiddie things”.
As prices in Indian destinations such as Goa have risen, foreign travel has become a more appealing option, she said. “Sometimes we are spending Rs20,000 [$240] on a domestic trip, so why not spend Rs25,000 and go abroad?”
Rising incomes, a growing middle class and burgeoning flight connections are putting more people in the world’s most populous country on the move, analysts said, echoing a decades-long trend in China.
“What you find with travel is there’s a button that gets pressed,” said Richard Clarke, Bernstein’s senior analyst for global hotels and leisure. “As soon as you hit the middle class you start travelling, and once you’ve got paid leave, that’s the trigger point to start travelling.”
By 2027, India should eclipse Australia, Canada and France to become the world’s fifth-biggest outbound tourism market, according to Bernstein. By then, Indian tourists will account for $89bn of the market value, it forecasts, more than double the $38bn recorded in 2019.
The Middle East is Indians’ top destination for outbound travel, accounting for nearly half of foreign trips, followed by south-east Asia, North America and western Europe, Bernstein said.
India is now the biggest source of holidaymakers in Dubai, ahead of neighbouring Saudi Arabia and Oman. It is the third-largest source of tourists for Thailand, according to the Tourism Authority of Thailand, which has organised roadshows in Indian cities such as Ahmedabad, Chandigarh and Lucknow in an effort to secure more visitors.
With India’s market growing and China struggling to revive outbound tourism after the pandemic, “India is taking the share of what was left by the Chinese pre-Covid”, said Paul Charles, chief executive of travel consultancy The PC Agency.
“There is no question that India’s travel market will be among the largest in the world over time,” said Elie Maalouf, chief executive of Holiday Inn and InterContinental owner IHG.
A record 115,000-plus departures are scheduled from Indian airports in September, a 9 per cent increase from a year ago, according to aviation data provider Cirium. Airlines, including India’s two biggest carriers, are planning for a tourism take-off. IndiGo Airlines and Air India ordered 500 and 470 new aircraft, respectively, last year, the two biggest orders in aviation history.
Air Canada will add 40 per cent more seat capacity for the Indian market from October. “The Indian outbound market is about large families travelling,” said Charles. “Airlines and hotels benefit from more seats and rooms being bought by a family rather than just two people travelling together.”
The impact of greater disposable income and willingness to travel will also be felt domestically. By 2027, India will be the third-biggest domestic tourism market after the US and China, Bernstein estimates — though still trailing those markets by a large margin.
With 65 hotels, India’s domestic market now accounts for 2 per cent of the global transaction volume of Accor, the hotel group behind Novotel and Sofitel. Accor chief executive Sébastien Bazin forecasts that within seven or eight years, the Indian market will match that of the US, which generates 12 per cent of global transaction volume.
For some travellers such as Duneja, higher costs at home are encouraging them to look further afield. Prices in Indian resort destinations such as Goa and Kerala have made foreign trips to nearby countries such as Vietnam, Sri Lanka, Thailand and Singapore more attractive, industry groups said.
“It’s going to work out more or less the same,” said Harjinder Singh, a Delhi-based tour operator and managing committee member of the Association of Domestic Tour Operators of India. “The mindset is, ‘I am travelling abroad, showing off’, and also, it’s equal in price, if not cheaper.”
Sana Nageshwar Rao, 72, a retired Indian civil servant, is ratcheting up the number of countries he has visited — 35 so far, most recently Egypt.
“Previously Indians didn’t used to spend money, but now they are going abroad,” said Rao. “They are cultivating the habit of spending and enjoying it with the family.”
1726201504
#travel #industry #pivots #big #market
Table of Contents
- 1 Here are some PAA (People Also Ask) related questions for the title **Unlocking the Potential of India’s Tourism Industry: Growth, Trends, and Opportunities**:
- 2 Here are some PAA (People Also Ask) related questions for the title: **India’s Travel Market: The Next Big Thing in Global Tourism**:
Unlocking the Potential of India’s Tourism Industry: Growth, Trends, and Opportunities
India’s tourism industry is on the cusp of a remarkable growth phase, driven by a rising middle class, increasing incomes, and improved flight connectivity. According to a report by Bernstein, India is expected to become the world’s fifth-biggest outbound tourism market by 2027, with Indian tourists accounting for $89 billion of the market value [[3]]. This growth is a significant opportunity for the travel and tourism sector in India, which is expected to grow by 8.87% (2024-2029) resulting in a market volume of US$34.11 billion in 2029 [[3]].
Rise of the Middle Class
The emergence of India’s middle class as a driver of the global tourism industry is a significant trend. As incomes rise, more people are opting for foreign travel, with the Middle East being the top destination for outbound travel, followed by south-east Asia, North America, and western Europe [[2]]. This growth is reminiscent of the trend seen in China, where the rising middle class has driven the growth of the tourism industry.
India’s Domestic Tourism Market
India’s domestic tourism market is also expected to experience significant growth, with the country set to become the world’s third-biggest domestic tourism market within three years [[1]]. The Ministry of Tourism brings out an annual publication called “India Tourism Statistics” every year, which provides details of international and domestic tourism trends in the country [[1]]. The government is also promoting niche tourism products, such as cruises, adventure, medical, wellness, sports, and MICE (meetings, incentives, conferencing, and exhibitions) tourism, to attract more tourists and create jobs [[2]].
Trends and Opportunities
The growth of India’s tourism industry presents several trends and opportunities:
Increased demand for foreign travel: With rising incomes, more Indians are opting for foreign travel, providing opportunities for tour operators, airlines, and travel agencies.
Growing demand for niche tourism products: The government’s focus on promoting niche tourism products is likely to attract more tourists and create jobs in the sector.
Improved flight connectivity: Enhanced flight connectivity is making it easier for people to travel, both within India and abroad.
Increased investment in tourism infrastructure: The government is expected to invest in tourism infrastructure, including airports, hotels, and tourist facilities, to cater to the growing demand.
Challenges and Opportunities
While the growth of India’s tourism industry presents several opportunities, there are also challenges that need to be addressed:
Infrastructure development: The government needs to invest in tourism infrastructure, including airports, hotels, and tourist facilities, to cater to the growing demand.
Security concerns: India needs to address security concerns, including the safety of tourists, to encourage more people to visit the country.
* Environmental impact: The growth of the tourism industry needs to be sustainable, with a focus on minimizing the environmental impact of tourism.
the growth of India’s tourism industry presents significant opportunities for the travel and tourism sector in the country. With a rising middle class, increasing incomes, and improved flight connectivity, India is set to become a major player in the global tourism industry. However, it is essential to address the challenges, including infrastructure development, security concerns, and environmental impact, to ensure sustainable growth.
References:
[1] Ministry of Tourism, Government of India. (n.d.). Research & Analytics. Retrieved from
[2] Startup India. (n.d.). Travel and Tourism Sector in India. Retrieved from
[3] Statista. (n.d.). Travel & Tourism - India. Retrieved from
India’s Travel Market: The Next Big Thing in Global Tourism
India’s travel market is poised to become a significant player in the global tourism industry, driven by a growing middle class, rising incomes, and increasing flight connections. According to Bernstein, India will eclipse Australia, Canada, and France to become the world’s fifth-biggest outbound tourism market by 2027, with Indian tourists accounting for $89 billion of the market value [[3]].
The Middle East is Indians’ top destination for outbound travel, followed by south-east Asia, North America, and western Europe [[3]]. India is now the biggest source of holidaymakers in Dubai, ahead of neighboring Saudi Arabia and Oman, and the third-largest source of tourists for Thailand [[3]].
Domestic Tourism Market
By 2027, India is expected to become the third-biggest domestic tourism market after the US and China, with the market growing at a rapid pace [[3]]. With 65 hotels, India’s domestic market now accounts for 2% of the global transaction volume of Accor, the hotel group behind Novotel and Sofitel [[3]]. Accor chief executive Sébastien Bazin forecasts that within seven or eight years, the Indian market will match that of the US, which generates 12% of global transaction volume [[3]].
India’s Travel Industry: A Growing Opportunity
India’s travel industry is experiencing rapid growth,
