India’s outbound tourism market is already huge and showing no signs of slowing down. It’s time for the global tourism industry and businesses to pay attention in the hope of capturing market share from the second largest market (Skift).

In the last few years, all eyes in the tourism industry are on China’s outbound tourism market. But now, India is proving that it will be the next one to watch. With the world’s second-largest population, India boasts one of the fastest-growing major economies in the globe. We’ve seen signs of the power of this market, as well as signs that real growth is yet to come.

Indian outbound tourism will surpass US$42 billion in 2024 (Nangia Andersen LLP & FICCI).

The pandemic period aside, India’s outbound tourism market has been one of the fastest growing in the world over the past few years, following only China. Before the pandemic, the Indian outbound tourism market was expected to grow at a compound annual growth rate of 7.2% from 2016 to 2028.

In 2021, Indians spent about US$14.3 billion for traveling overseas, compared with US$22.9 billion in 2019 (UNWTO). While the drop in spending could be due to the pandemic, these figures show the enormous value from Indian outbound travelers.

Overall economic growth, a large and increasingly affluent middle class, along with the increasing convenience and connectivity of air transport have fueled an increase in outbound travel from India. In addition, the needs of niche markets in tourism such as medical tourism, wellness and adventure tourism also contribute to this growth. The increasing usage of smartphones and the internet has contributed to the rise of online bookings. Barriers remain as the tourism industry is recovering, but there are optimistic signs of a strong return of the Indian outbound tourism market in the next few years.

Support from government regulations is also one of the levers for the development of this market. In particular, to facilitate business activities and promote the participation of Indian companies in outbound tourism, the government may consider steps such as increasing direct connections to popular and emerging destinations, allowing foreign cruise ships in Indian waters, or trying to coordinate with stakeholders to boost the outbound tourism market.

With its growing economy, young population and increasing middle class, India is ideally positioned to be one of the potential outbound tourism markets, and bring a great revenue to many destinations around the world.

 

During the meeting with the Vietnamese tourism delegation, Shri Gyan Bhushan, Senior Economic Advisor – Ministry of Tourism of India, said that language and cuisine are barriers preventing Indian visitors to Vietnam.

According to Pham Van Thuy, Deputy Director General of Vietnam National Administration of Tourism, Vietnam, and India have had a close and comprehensive cooperation relationship for many years, especially in tourism.

Shri Gyan Bhushan said that Vietnam has many cultural and religious similarities with India. Therefore, Vietnam has also become a popular destination for Indian tourists. Besides, many Vietnamese tourists also choose India as a destination for spiritual, Buddhist, medical, and sightseeing.

However, the number of tourists between the two countries is still limited in recent years and is not commensurate with the tourism potential of the two countries. One of the limitations of tourism development mentioned is language and cuisine.

“To attract and meet the needs of Vietnamese tourists to India soon, the Indian Ministry of Tourism proposed to promote human resource training activities in tourism. We open many courses for teaching Vietnamese, promoting culinary exchanges, sending Indian chefs to Vietnam to study Vietnamese cuisine, and opening Vietnamese restaurants in India,” added Shri Gyan Bhushan.

Pham Van Thuy also approved the above proposal. Meanwhile, he also suggested that India continues to simplify entry visa procedures for Vietnamese citizens, and encourage airlines to continue to expand their network of routes connecting cities of India and Vietnam.

The two nations committed to supporting each other by organizing market launch programs; encouraging enterprises to participate in international tourism fairs organized by each party; encouraging localities of the two countries to cooperate; and boosting tourism in the upcoming time.