India to Spend $474 Million to Develop Over 100 New Tourist Destinations

The Indian government has approved the development of 116 new tourist destinations across India. These destinations will be developed at a total cost of nearly INR 41 billion ($474 million) in partnership with state governments. 

Forty of the projects will focus on developing iconic tourist centers in the country, branding, and marketing them globally. 

These include an adventure and eco-retreat in Arunachal Pradesh; a state zoo and botanical garden in Assam; an eco-tourism and adventure hub in Bihar; a film city in Chhattisgarh; and a tented city, a convention center in Gujarat, and more. 

While these sites will be developed according to standards for global promotion, there is not much information on how these will be promoted. The international marketing budget was slashed 97% last year to just INR 30 million ($361,000), and this has not increased in this year’s budget either. 

India has been struggling to lift its inbound tourism. In 2023, India had about 9.5 million foreign tourists, 90% of the pre-Covid figures. And in the first six months of 2024, India recorded just 4.8 million foreign arrivals.

Skift previously reported that cumbersome visa process and suspension of tourists visas for Chinese nationals continue to major hurdles for India's inbound recovery. Other issues include: A low promotion budget, pollution, perception of safety and health, and low hotel room supply.

At the Skift India Forum on Tuesday, Director General of Tourism for the Government of India Mugdha Sinha said that the country is likely to witness its next peak in foreign tourist arrivals in 2028-29. She added that over the next three years, the government is investing INR 120 billion ($1.4 billion) in developing infrastructure creating only alternative and detour destinations, she said.

Mumbai Airport Proposes Rise in User Development Fee

The Adani Group-run Mumbai International Airport has proposed an increase in user development fees for domestic and international departures. It is planning to introduce a fee of INR 325 ($4) for every domestic passenger, who are currently not charged this fee. For each passenger traveling on international flights, the company has proposed to increase the fee from INR 187 ($2) to INR 650 ($7.50). 

User development fees are directly borne by the passengers, while other aeronautical charges are collected from the airlines. It explained the reason behind the move: “Over the next five years, the airport will invest INR 100 billion ($1.2 billion) in creation of airport infrastructure and recover a total revenue of INR 76 billion ($880 million) from an expected 229 million passengers, which translates to a balanced approach in revenue recovery,” the company said in a statement.

To offset the hike, Adani Airports has proposed reducing airline landing and parking charges. The company is planning to redevelop Terminal 1 of the Mumbai Airport. 

Ixigo, Amadeus Sign Enhanced Travel Distribution Partnership

Indian online travel agency Ixigo has partnered with travel technology company Amadeus to enhance its airline content offering. Under the partnership, Ixigo will integrate to its platform content from Amadeus’ advanced new distribution capability (NDC) and electronic data interchange for administration, commerce and transport (EDIFACT). 

Ixigo expects to introduce advanced post-booking services along with more flexibility and choices for its travelers. “This collaboration will also provide Ixigo access to a broader range of travel options on a single platform, eliminating the need for costlier and less scalable alternatives,” it said in a statement.

Oberoi Opens Vindhyavilas Wildlife Resort in Bandhavgarh

Indian luxury hotel chain The Oberoi Group has opened The Oberoi Vindhyavilas Wildlife Resort, Bandhavgarh in Madhya Pradesh. The property features 19 luxury tents and two luxury villas. 

The property has been designed around the surrounding wildlife experience, with its close proximity to the Bandhavgarh National Park which is home to Royal Bengal Tigers. “India’s national parks are among the country’s most extraordinary natural treasures,” said CEO Vikram Oberoi. 

According to business consulting firm Grand View Research, the wildlife tourism market in India stood at $11.2 billion in 2023. This is expected to grow at a rate of nearly 10% a year from 2024 to 2030, reaching $21.7 billion at the end of the decade.

Tirupati: India’s Most Affordable Destination This Spring

For travel between April and May this year, Tirupati in Andhra Pradesh is the most affordable domestic destination in terms of accommodation, according to online travel company Agoda. The company has compiled a list of the most affordable destinations across nine Asian countries. Among the list, Phong Nha in Vietnam has emerged as the most budget-friendly destination, followed by Tirupati in India. 

Indian travelers continue to be budget conscious while traveling internationally in terms of accommodation, even as they continue to be spontaneous when booking. Over 60% of the travelers aged between 18 and 27 aim to keep their accommodation costs under INR 4,200 ($50) per night, and 24% aim to keep the spending between INR 4,200 to INR 4,800 ($50-$55) per night, an Agoda survey revealed last month. 

Radisson Signs 150-Key Hotel in Ludhiana

The Radisson Hotel Group has signed a Radisson Blu-branded hotel in Ludhiana. The 150-key property will be the group’s 18th property in the northern state of Punjab. 

Not counting this hotel, Radisson has nine operational hotels with nearly 1,000 keys in the state, while eight are under development. 

“Given the state’s thriving industrial sector, robust wedding culture and increasing demand for premium accommodation, Radisson Blu, our upper-upscale brand, is perfectly positioned to cater to this demand, offering a blend of sophistication, modern design and personalized service,” said Nikhil Sharma, Managing Director and COO, South Asia, Radisson Hotel Group.