Foreign Tourist Arrivals in India Remain Below Pre-Pandemic Levels Despite Increased Air Travel
Delhi: The Thriving Indian Aviation Sector and the Elusive Foreign Tourist
India's aviation scene is buzzing, with new international routes popping up week after week and an increasing number of Indian citizens embarking on exotic adventures. From the sun-kissed shores of Bali to the ancient streets of Baku, the burgeoning Indian middle class is fueling global travel demand like never before. Yet, despite this skyrocketing expansion, the number of foreign tourists setting foot on Indian soil continues to lag behind pre-Covid levels.
In the first half of 2024, India welcomed 4,778,374 foreign travelers, marking a 9.1% increase compared to the same period in 2023. Yet, this figure falls short by roughly 10% when stacked against the 5,296,025 foreigners visiting India in the first six months of 2019 – before the Covid-19 pandemic brought global travel to a halt.
This mismatch is intriguing. While foreign arrivals are still stretched, international footfall at Indian airports has jumped by 9.9% in the first quarter of the 2024-25 financial year, compared to the same period in 2019-20. This staggering growth can be attributed to a complex interplay of factors: the escalating rate of Indian outbound travel and the shifting dynamics of global tourism.
According to aviation analytics firm Cirium, by the end of June 2024, India had added an impressive 674 weekly international flights and 140,435 additional seats on routes initiated from the country. This remarkable expansion represents a nearly 20% increase in departures and available seats, and a 27.5% growth in Available Seat Kilometers (ASK), over June 2019 levels.
Interesting Facts:- The distinctions between Foreign Tourist Arrivals (FTAs) and International Tourist Arrivals (ITA) are worth noting. While total international arrivals (ITA) have surpassed pre-pandemic levels, FTAs alone recovered to around 87% of 2019 levels in 2023.- The Covid-19 pandemic hit India's tourism sector hard, causing a 7.3% contraction in GDP and widespread disruptions in the early stages of the pandemic.- Domestic travel has played a crucial role in reviving India's tourism sector, but foreign tourist arrivals have been slower to bounce back.
Spend More, See Less:While foreign tourist arrivals (FTAs) may be sluggish, international tourism spending in India is soaring. The Ministry of Tourism reports a 5.54% increase in Foreign Exchange Earnings (FEE) in the first half of 2024 compared to 2019. However, the decline in visitor numbers suggests that this heightened spending could be more about inflation rather than an influx of wealthier tourists. The depreciated rupee has further inflated this upward trend, with FEE in rupee terms swelling by 25.4%.
Unraveling the enigma of India's underperforming FTAs requires peeling back the layers of a multifaceted challenge. The ongoing Russia-Ukraine war, instability in the Middle East, and post-pandemic economic jitters have all contributed to a tempered global travel climate. To add insult to injury, stricter Covid-19 regulations in China have cramped travel, while neighbouring destinations like Thailand and Malaysia have capitalized on the opportunity by offering visa-free entry to Indian tourists.
Looking Ahead:India's tourism sector could use a fresh, aggressive marketing campaign to rekindle the thrill of travel among foreign visitors. Past initiatives like "Incredible India" and "Atithi Devo Bhava" showcased positive results. Nevertheless, such efforts need to be complemented by improvements in infrastructure and services. The rising traffic congestion and mounting concerns over cleanliness and safety in major cities and tourist hubs are causing setbacks in making India an attractive destination.
As India charts its way through the post-pandemic world, a holistic approach to tourism has never been more critical. Heavy investments in infrastructure, enhancement of safety measures, and a strong marketing push could bridge the gap between current tourist numbers and the booming pre-Covid era. The tourism industry, a key source of foreign exchange, should not be overlooked in India's broader economic strategy.
Q: Are there any specific policies needed to boost foreign tourist arrivals in India?
A: Experts suggest that consistent and clear government policies addressing the needs of small and medium-sized enterprises and regional tourism improvements could help tap into the full potential of the tourism sector, ultimately driving higher foreign tourist arrivals. (Sources: 3)
Q: How has post-pandemic economic instability affected global travel patterns?
A: Global travel patterns have shifted post-pandemic, with increased demand for luxury, experience-focused travel, as well as record growth in business travel. However, these trends may not fully compensate for the initial decline in leisure foreign tourist arrivals. (Sources: 3)
The surge in Indian outbound travel and the shift in global tourism dynamics present opportunities for increasing foreign tourist arrivals, thereby enriching India's lifestyle and travel industries. However, the ongoing economic instability, stricter COVID-19 regulations, and visa policies in neighboring countries have dampened global travel, thus impeding foreign tourist arrivals in India.
