Visitors Aren't Coming to India: What the Travel Industry Wants Now

Tourism is booming from and within India, but inbound travel to India...that's still lagging badly.

In 2019, India received approximately 10.5 million foreign visitors. But post-Covid, they've only reached around 9.5 million.

The goal now is to increase that volume and also grow its foreign exchange earnings from the sector.

Dipak Deva, managing director and CEO of Travel Corporation India, stressed the urgent need for a well-funded social media campaign that focuses on sustainability and immersive experiences. "The success of the campaign would be measured through foreign exchange earnings and not foreign tourist arrivals,” Deva said while speaking at the Skift India Forum this week.

Deva added that India must allocate at least INR 10 billion ($120 million) towards a robust tourism promotion strategy. Last year, the government slashed India's overseas tourism promotion budget by 97% to INR 30 million ($350,000)

Mugdha Sinha, India’s director general of tourism, also agreed that marketing is crucial.

The Incredible India campaign, first launched in 2002 and later revamped as Incredible India 2.0 in 2017, brought much-needed visibility to India’s tourism sector. But it's been eight years since the last significant marketing push.

Why it Matters: Foreign tourists contributed foreign exchange earnings worth INR 2.3 trillion ($26.8 billion), a growth of around 65% in the same period compared to INR 1.4 trillion ($16.3 billion) in 2022. Deva pointed out that Incredible India 2.0 was not just an important milestone in our digital campaigns and helped register the highest tourism arrivals in 2019, but it also helped the country earn $30 billion in foreign exchange earnings.

Using Data and Technology

Beyond marketing, India has two powerful levers at its disposal: data and technology, said Sinha. Travel decisions today are heavily influenced by digital content, social media recommendations, and online booking systems.

“Since we don’t have budgets under the marketing head, we will be using data and technology to do our marketing,” Sinha said.

Recognizing this trend, India has started forging partnerships with private sector players like Agoda to improve data-driven marketing and real-time sentiment analysis.

$1.4 Billion Worth of Infrastructure

Additionally, the government has invested INR 120 billion ($1.4 billion) in infrastructure development, focusing on alternate destinations, improved accessibility, and building amenities for accommodation.

The impact of this investment is expected to be fully realized by 2028-2029, potentially marking a peak period for inbound tourism growth, according to Sinha.

The Visa Pain Point

One of the most significant deterrents for international travelers is the complexity of India's visa process. While the introduction of e-visas in 2016 was a landmark reform, further simplifications are necessary to boost foreign arrivals.

Deva suggested introducing a 48-hour transit visa for travelers passing through major Indian airports, which could encourage short-stay visits and boost local spending. The visa process needs to be upgraded, simplified, and multilingual, he said.

“Yes, there is an issue with simplification of the (visa) process. We can make it simpler,” said Sinha. She said the ministry of tourism is right now working with the ministry of home affairs to simplify the visa process.

The MICE Tourism Opportunity

Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism presents another lucrative opportunity. India has made significant strides in this sector, particularly after its successful hosting of 200+ G20 meetings across 60 cities. The country now boasts a vast network of convention centers in metros, Tier-2, and Tier-3 cities, making it an attractive destination for international conferences.

To capitalize on this trend, Sinha said India has also applied for International Congress and Convention Association (ICCA) membership, ensuring better networking opportunities for local conference organizers. Also, the government is working to accredit professional conference organizers (PCOs) to improve credibility and attract more global events.

Safety and Perception Management

Traveler safety, particularly for solo and female tourists, remains a pressing issue. India is working towards improving its global image by conducting opinion-based surveys to monitor visitor experiences.

“Our crisis management has to be better. The way a country handles incidents can shape its global perception,” Deva said.

Sinha said the government is also working with IRCTC that operates luxury trains for familiarisation trips, to create safer, structured travel experiences that highlight India's rich culture without compromising security.

While government initiatives play a crucial role, Sinha said the onus of creating a tourist-friendly environment also lies with businesses, local communities, and citizens. The ripple effect of making India more accessible, safe, and appealing, will positively impact the entire economy, she said.