Indian outbound tourism likely to reach USD 55388.41 million by 2034: FICCI-Nangia Report

Jul 31, 2024

• Bilateral Engagements; Improved Connectivity; Support to travel industry stakeholders; MSME Development; Marketing of International Destinations; Digital Transformation; Curated Packages are interventions required to promote outbound tourism

 

 

NEW DELHI, 31^st July 2024: India's outbound tourism market is expected to reach USD 18817.72 million in 2024 and grow at a CAGR of 11.4 per cent in the decade between 2024 and 2034 to reach approximately USD 55388.41 million by the end of this period, highlights the FICCI-Nangia knowledge paper ‘Navigating Horizons: The Rise and Future of Indian Outbound Tourism’, released during the ‘3^rd Outbound Tourism Summit’ today.

 

The report also highlights that few emerging markets and opportunities for outbound travel include various Southeast Asian, Middle Eastern, African and Eastern European countries. India’s online travel market, which consists of sales of travel services through online channels, is expected to grow at a CAGR of 10.5 per cent between 2024-29, from USD 17.24 billion to USD 28.40 billion. International travel has thus been eased by the steady growth in affordable technology, states FICCI-Nangia report.

 

It further states that the government administration and the tourism industry stakeholders in India may undertake various strategic interventions to promote the outbound tourism market. These include Bilateral Engagement; Improved Connectivity; Support to travel industry stakeholders; MSME Development; Marketing of International Destinations; Digital Transformation; Curated Packages; Hospitality Partnerships.

 

Speaking at the launch of the report, Amb Ms Mary M Mutuku, Deputy High Commissioner of Kenya to India said that Kenya is not only committed to deepen the relations between India and Kenya but also promote Kenya as a preferred tourist destination. “Currently, India market is among the top 5 Kenya’s key sources of tourists, and this has potential to grow even further,” she added.

 

To attract more Indian tourists to Kenya, Amb Mutuku stated that Kenya has put in place necessary infrastructure to ease travel in the country. “With an increase in number of flights between the two countries along with opening of Nairobi Expressway, tourists will have more convenience travelling in Kenya. A new cruise terminal at Mombasa port is a major boost to cruise tourism. The berth targets to enhance passenger handling capacity as well as allow for an increased volume of cruise ships arrival at the port,” she added.

 

Mr Seitenov Darkhan, Deputy Ambassador, Embassy of Kazakhstan to India said, “We have huge potential for mutual and beneficial cooperation in tourism sector. There has been a significant growth in the number of tourists coming to Kazakhstan from India which is also due to offering 14 days visa free regime for Indian tourists along with increase in number of direct flights.”

 

While highlighting the investment potential for Indian industry, Mr Darkhan further said that in order to meet the needs of Indian tourists in Kazakhstan, it would be advisable to consider building a network of Indian hotels and restaurants in the major cities in Kazakhstan. “We invite major Indian investors to participate in implementing these initiatives in our country,” he added.  

 

Mr Geshan Dissanayake, Minister Commercial, High Commission of Sri Lanka in India said, “The strong shared heritage between India-Sri Lanka forms the bedrock of our bilateral relationship. India alone stands out as a key source market for Sri Lanka. The integration of Indian UPI payment system with ‘LankaPay’ has made simplified payment options for Indian tourists visiting Sri Lanka,” he added.

 

Mr Dissanayake further stated that to fully realize the potential of outbound tourism there is a need to focus on marketing and promotion of various offerings by Sri Lanka; infrastructure development; promoting sustainable tourism and further streamlining the visa process. Working together, we can unlock the potential of outbound tourism between India-Sri Lanka,” he added.

 

Dr Jyotsna Suri, Past President, FICCI and CMD, The Lalit Suri Hospitality Group stated that any country has to have a healthy inbound and outbound tourism. “Indian tourism has witnessed a major growth in last few years and while we are at the threshold of massive growth, we must be cognizant of sustainability as well,” she added.

 

Mr Ankush Nijhawan, Chairman, FICCI Outbound Tourism Committee & Co-Founder, TBO.com and MD, Nijhawan Group said that the global travel and tourism industry is expected to reach $2.6 trillion by 2027, growing at a CAGR of 8.2 per cent. “The traveler preferences are becoming increasingly diverse, and demand tailor made travel services. Demographic boost, government support, increased connectivity and niche segment growth are powering India’s outbound travel boom,” he added.

 

Representatives from the Embassy of Madagascar to India, Embassy of Georgia to India, Malaysia Tourism Promotion Board, Singapore Tourism Board also shared their perspectives during the session.