Alta Thoughts (March 2025)
By Rakesh Patel
The economic transformation of India under Prime Minister Modi has been nothing short of incredible. The economy has more than doubled since 2014, to become the world’s fifth-largest. The country’s foreign direct investment has surged, the stock market has boomed, and the middle class is expanding rapidly.
How is this economic boom translating into travel and tourism? For Indian nationals, both domestic and outbound travel are on a strong trajectory – outbound is seeing 11% CAGR. However, international visitors to India still fall short of expectations. Despite India’s rich culture, history and beauty, the country attracted only 19 million foreign visitors in 2024, far behind Asian tourism rivals, like Thailand with 36 million and Japan at 37 million.
Several challenges hinder the growth of inbound tourism, such as cumbersome visa processes, safety concerns, and a shortage of adequate hotel infrastructure. Additionally, the government’s approach to tourism development remains somewhat fragmented.
Take airports, for example. While privatization has sparked significant upgrades and the creation of beautiful travel hubs, the connecting transport infrastructure remains underdeveloped. And the government has ambitious plans to promote 116 tourist destinations, but it has allocated only $361,000 for marketing efforts.
India’s tourism potential is immense, but it’s not yet living up to its global promise. While progress has been made, a more cohesive strategy – focused on infrastructure improvement, better connectivity, and effective marketing – is crucial for India to truly realize its full tourism potential. Incredible India? – not yet.
Below are a few of our recent thoughts on Indian tourism posted on LinkedIn. Always good to hear your feedback. You can follow us directly on LinkedIn and go to our website.
India’s inbound tourism continues to face significant challenges, with 2024 seeing only 19 million foreign visitors, far behind countries like Thailand (36 million) and Japan (37 million). Issues such as cumbersome visa processes, safety concerns, and limited hotel capacity are all contributing to this slower growth.
In response, the government is investing $474 million to develop 116 new tourist destinations, including adventure retreats, film cities, and eco-tourism hubs across various states. These projects aim to diversify and enhance India’s tourism offerings.
However, the marketing strategy surrounding these developments appears fragmented. With the international tourism budget slashed by 97% last year to just $361k, and no increase in this year’s allocation, there are concerns that without adequate promotion, these new destinations may not reach their full potential on the global stage.
Are these the world’s most beautiful airports?
India’s new airports are the best designed in the world, according to some, but do they function?
India is adding airport capacity at a rapid rate – 70 planned airport upgrades/additions by 2030. Some new terminals at Bangalore and Mumbai are superbly designed, with a nod to the country’s physical beauty and cultural heritage – thank you privatisation.
No surprise though that good design doesn’t always mean good function. Some of the inefficiencies of air travel in India are still there to haunt us – poor transport links to the airport and when you get there, multiple layers of security checks.
