India’s outbound tourism market is on a robust growth trajectory, expected to reach USD 18.8 billion in 2024 and expand at a compound annual growth rate (CAGR) of 11.4% over the next decade. By 2034, it is forecasted to approach approximately USD 55.4 billion, according to the FICCI-Nangia knowledge paper, Navigating Horizons: The Rise and Future of Indian Outbound Tourism. The report was unveiled at the ‘3rd Outbound Tourism Summit’ on August 31, 2024.
Emerging Markets and Growth Opportunities
The report identifies several emerging markets and opportunities for outbound travel, including countries in Southeast Asia, the Middle East, Africa, and Eastern Europe. Additionally, India’s online travel sector is poised for significant growth, with a projected CAGR of 10.5% from USD 17.24 billion in 2024 to USD 28.40 billion by 2029. This expansion is attributed to the increasing affordability of travel technology, which facilitates international travel.
Strategic Interventions for Growth
The report suggests that strategic interventions by the government and tourism stakeholders could further bolster the outbound tourism market. Recommended actions include:
- Bilateral Engagement: Strengthening ties with key travel markets.
- Improved Connectivity: Enhancing flight and transport options.
- Support for Travel Industry Stakeholders: Providing aid to industry professionals.
- MSME Development: Supporting small and medium enterprises in tourism.
- Marketing International Destinations: Promoting lesser-known destinations.
- Digital Transformation: Embracing technology for better travel experiences.
- Curated Packages: Offering specialized travel packages.
- Hospitality Partnerships: Collaborating with international hotels and services.
Representatives from the Embassy of Madagascar to India, the Embassy of Georgia to India, the Malaysia Tourism Promotion Board, and the Singapore Tourism Board contributed their perspectives on enhancing tourism collaborations.
As India’s outbound tourism market continues to grow, these strategic insights and international collaborations are set to play a crucial role in shaping its future.