Fixing Tourism Strategy in India Amid Persistent Challenges

Syllabus: GS3/Economy

Context

• India’s inbound tourism is gradually recovering but remains below the pre-pandemic peak of 10.93 million in 2019, highlighting persistent challenges ranging from global travel hesitancy to domestic infrastructural and environmental constraints.

About Tourism Sector of India

• According to the Ministry of Tourism, foreign tourist arrivals reached 9.95 million in 2024, still below the pre-pandemic peak of 2019.
  • In 2025, 5.6 million tourists arrived up to August, compared to 6.3 million during the same period last year.
• The tourism market in India is projected to reach US$125 Billion by FY2027, and projected to contribute $523.6 Bn to India’s GDP by 2034.
  • International Tourist arrival is expected to reach 30.5 million by 2028.
• India ranks 39th in 2024 in the Travel & Tourism Development Index of WEF, excelling in natural and cultural resources.
• The World Travel & Tourism Council (WTTC) projects that by 2035, India’s travel and tourism sector could contribute ₹42 trillion to GDP and support 64 million jobs.
  • It underscores the sector’s long-term potential as a driver of economic growth and employment, provided policy and infrastructure reforms keep pace.
• Tourism as an Economic Engine: Tourism supports:
  • Employment across skilled and unskilled sectors;
  • MSMEs in transport, food, crafts, and hospitality;
  • Cultural preservation through monetization;
  • Soft power, shaping how the world perceives India

Concerns & Issues With Tourism Sector of India

• Budget Constraints and Promotion Cuts: The Union Budget 2025–26 maintained the overall tourism allocation at ₹2,541 crore, but funding for overseas promotion and publicity was slashed from ₹33 crore to just ₹3.07 crore.
  • This sharp reduction could weaken India’s visibility in key markets, especially when other nations are investing heavily in post-pandemic destination branding.
• Spending Up Despite Fewer Arrivals: WTTC estimates that international tourist spending in India was at ₹3.1 trillion in 2024.
  • India is attracting higher-value travelers, while the number of visitors remains below pre-pandemic levels.
• Persistent Structural Bottlenecks: According to the Indian Association of Tour Operators (IATO), India’s capacity to capture demand remains constrained by bottlenecks amid rising interest from North America, Europe, and West Asia, as well as growth in MICE and wellness tourism. It includes:
  • Several long-standing issues continue to limit India’s tourism potential:
  • Slow eVisa processing and limited visa-on-arrival access;
  • Poor air connectivity from major source markets;
  • Infrastructure gaps including last-mile connectivity, sanitation, and quality lodging;
  • Weak multilingual support for international travelers;
  • Fragmented Promotion: India lacks a cohesive global branding strategy. Multiple agencies operate in silos, diluting the impact of promotional efforts.
• Regional Concentration and Uneven Growth: Tourism in India remains heavily concentrated in a few regions.
  • In 2024, North Zone (35.62%); South Zone (26.27%); West & Central (19.94%); East (16.60%); Northeast (1.58%) of arrivals highlight a need for better distribution of tourism.
• Comparative Higher Spending & Lower Footfall: India attracts far fewer tourists annually than Thailand, Malaysia, or even the smaller island nation of Sri Lanka even after premiumization of travel offerings, rising domestic spending, and targeted promotion of niche tourism.

Government Efforts & Initiatives Supporting India’s Tourism Sector

• Union Budget 2025–26: Development of 50 tourist destinations in partnership with states through a ‘challenge mode’, ensuring world-class infrastructure, connectivity, and visitor experience.
• Dekho Apna Desh: Aimed at encouraging domestic tourism by promoting lesser-known destinations and fostering pride in India’s cultural heritage.
• Swadesh Darshan 2.0: Focusing on sustainable and theme-based tourism circuits such as spiritual, heritage, and eco-tourism.
  • Themes include Buddhist, Coastal, Desert, Eco, Heritage, Himalayan, and Wildlife circuits.
  • It also includes a Village Tourism Development Program with the aim to promote homestays and local experiences for sustainable livelihoods.
• Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) Scheme: It focuses on the holistic development of pilgrimage sites, and aims to promote spiritual tourism and cultural heritage.
• Incredible India Tourist Facilitator Certification (IITFC): A digital learning platform to train and certify professional tourist facilitators, improving service quality and tourist satisfaction.
• Capacity Building for Service Providers (CBSP): Offers training programs to enhance the skills of tourism service providers, including guides, drivers, and hospitality staff.
• Medical and Wellness Tourism: Promoted under the ‘Heal in India’ initiative, which includes streamlined visa processes and partnerships with private healthcare providers.
• Incredible India 2.0 Campaign: It revamped India’s global image with digital marketing and brand building.
  • Utilizes immersive technologies (AR/VR);
  • Tailored campaigns for major international markets;
• Adopt a Heritage Project: Partnership between the Ministry of Tourism, Ministry of Culture, and ASI for public-private collaboration in maintaining heritage sites.
  • Corporate entities adopt monuments to enhance amenities and interpretation centers.
• Meetings, Incentives, Conferences, and Exhibitions(MICE) Promotion: India promotes MICE tourism as a high-value sector.
  • Creation of the India MICE Digital Catalogue to showcase conference facilities across major cities.
  • Collaboration with FICCI and state tourism departments.
• National Integrated Database of Hospitality Industry (NIDHI): Digital platform registering hospitality units to promote ease of doing business.
  • Over 45,000 hotels registered.
  • Integrated with the SAATHI initiative for hygiene and safety certification.

Way Forward: Strategic Priorities for a Stronger Comeback

• To achieve broad-based, sustainable growth, India needs to act decisively:
  • Revive ‘Incredible India’ with modern, digital-first global campaigns for markets like the US, Europe, and East Asia.
  • Simplify and expand eVisa access to attract a wider pool of travelers.
  • Enhance air connectivity to Tier-II cities like Kochi, Goa, Jaipur, and Guwahati.
  • Promote integrated circuits combining culture, wellness, and spirituality to increase per-tourist spending.
  • Invest in cleanliness, accessibility, and hospitality training to elevate visitor experience.
  • Strengthen public-private partnerships (PPPs) to ensure quality infrastructure and service delivery.

Source: BS