Almost immediately after the end of the pandemic restrictions, India’s tourism sector began to grow steadily. Meanwhile, this growth has a peculiarity – in addition to tourists from developed countries who visit the country, domestic tourism has a positive economic effect. India Brand Equity Foundation expects already this year (by the end of 2024), the tourism industry to contribute $24+ billion to the economy. Thus, with an annual growth rate of 9.6% (2024 – 2028), the market size will surely reach $34.25 billion (by 2028).
The number of foreign tourists in India in 2023 increased by 64% compared to 2022. This means that 9.23 million people entered the country in January – December 2023. In January – December 2022, they were 6.43 million. Despite this impressive growth, the sector remains 15.5% below pre-pandemic 2019 (according to the Ministry of Tourism). However, it may soon change! The WTTC Economic Impact Study says that India will soon become the 3rd most influential market in the travel and tourism industry worldwide.
Of course, India attracts tourists from all over the world! Many people want to get acquainted with local traditions, culture, amazing nature, etc. Gambling also has a positive impact on the Indian tourism industry. Casinos attract foreigners, especially from those countries where there are no land-based gambling houses. Besides, top Gamblorium online casinos have played an important role in stimulating the country’s economic growth. iGaming operators provide an opportunity to have fun and create additional jobs.
What Are The Reasons?
Tourism in India has been boosted in part by officials’ efforts to revive it after the COVID-19 pandemic and major infrastructure projects. For example, the construction of the Kashi Vishwanath Corridor in Varanasi, which connected the temple and the Ganges River. It has facilitated access to 2 of the most famous religious IN sites. In addition, over the past decade, $200+ billion has been spent on improving India’s transport sector. The number of airports has also doubled since 2014. Thus, due to these factors and its rich culture, India seems rather attractive to international travelers. So, analysts predict that India will welcome 30.5+ million foreign visitors by 2028. The influx is also boosted by international corporations and government initiatives to support the industry.
We should not forget about domestic tourism. In 2022, the number of domestic tourist trips reached 1.731+ billion. This is higher than 677 million (2022). So, the Travel Trendz Report 2023 also mentioned the popularity of local tourism. It states that 81% of IN travelers prefer to explore the landscapes and culture of their country instead of traveling abroad. This is quite reasonable – international journeys are expensive, flights are long, and the tourists need a visa. Besides, as we have already said, land-based casinos also attract tourists to India. There are casinos in 3 IN cities – Goa, Daman, and Sikkim. Each offers not only casinos and gambling but also a unique cultural heritage. Nodar Giorgadze notes that even though the iGaming industry is constantly developing, land-based casinos do not lose their attractiveness.
The Issue’s Negative Side
Experts say that by 2030, Indians could rank 4th in the world in travel spending. With increased economic prosperity and sustained growth, the country will become an important global travel market. Today, India is the 5th largest economy in the world, and its population (1.4 billion) has exceeded that of China. Meanwhile, India is a young country – the average age of its residents is 27.6 years. As you know, young people are more inclined to travel. The goods and services consumption (leisure and recreation) will also double by 2030.
So, by 2030, Indian citizens will make 5 billion trips. Besides, total spending on foreign travel will reach $410 billion. Spending will increase following economic growth! According to forecasts, by 2030, 13 million households in India will have an annual income of $35.000. Analysts believe IN households will overtake Indonesia, the Philippines, and Thailand in terms of spending.
To prepare for the growing travel demand, Indian airlines have already ordered 1,000+ aircraft. Now the total number of aircraft in the country by 2030 will be 1,500 – 1,700. For example, in June 2023, Air India acquired 470 Airbus and Boeing aircraft as part of a fleet expansion program, for which the company allocated $70 billion. Now, according to the CEO of the Sarovar Portico Hotels & Resorts chain, Indian travelers prefer to take several short trips at once instead of 1 – 2 per year. In addition, IN tourists prefer long vacations. In 2022, 29% of Indian travelers spent 25+ days on vacation. This is more than tourists from Australia, Germany, and the USA.
Thanks to this, the tourism sector in the Indian economy already accounts for about 5% of the country’s GDP. The sector is expected to grow at an average annual rate of 7.8% over the next decade. Also, the CEO of Sarovar Portico Hotels & Resorts notes that tourists from India have become more discerning and inclined to experiment with what they want to get from their trip. They are open to unique, authentic, and exciting experiences! Naturally, they are willing to spend more and more money.
What’s the Bottom Line?
India has become popular in 2024 among tourists from developed countries. In December 2023, the United States became the main tourist’ supplier, accounting for 22.33% of arrivals. Bangladesh, the UK, Australia, and Canada provide almost 17%. Thanks to this large-scale influx of visitors, the local tourism sector began to grow, and hiring in the industry jumped to 61%.
In total, by 2033, 58.2 million jobs will be created in the IN hospitality and tourism sector. Besides, the Hotel Association of India predicts the hiring of 5 million employees in the next 5-7 years. The large influx of guests from developed countries has already begun to affect the level of services. In 2023, a significant share of tourist revenue came from hotels that tourists booked on their own. However, this year the situation is expected to change and the largest source of income will be package holidays. According to an ANI report, the market expects 65 million people to buy such tours by 2028.