Indian outbound tourism to grow at over 11 pc CAGR through 2034: FICCI-Nangia report
NEW DELHI: India’s outbound tourism market is expected to reach USD 18817.72 million (USD 18.81 billion) 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 (USD 55.38 billion), highlighted a FICCI-Nangia knowledge paper.
The paper titled ‘Navigating Horizons: The Rise and Future of Indian Outbound Tourism’, released during the ‘3rd Outbound Tourism Summit’ here in the FICCI office earlier this week, asserted 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 the paper.
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; marketing of international destinations; curated packages; and hospitality partnerships, among others.
Speaking at the launch of the report, 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 promoting Kenya as a preferred tourist destination.
“Currently, the India market is among the top 5 Kenya’s key sources of tourists, and this has the potential to grow even further,” she said in her brief address.
To attract more Indian tourists to Kenya, Mutuku stated that Kenya has put in place the necessary infrastructure to ease travel in the country.
“With an increase in the number of flights between the two countries along with the opening of the Nairobi Expressway, tourists will have more convenience traveling 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.
Seitenov Darkhan, Deputy Ambassador, Embassy of Kazakhstan to India had said, “We have huge potential for mutual and beneficial cooperation in the tourism sector. There has been 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 an increase in a number of direct flights.”
While highlighting the investment potential for Indian industry, 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.
Geshan Dissanayake, Minister Commercial, High Commission of Sri Lanka in India said, “The strong shared heritage between India and Lanka forms the bedrock of our bilateral relationship. India alone stands out as a key source market for Sri Lanka. The integration of the Indian UPI payment system with ‘LankaPay’ has made simplified payment options for Indian tourists visiting Sri Lanka,” he added.
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 and Sri Lanka,” he added.
Jyotsna Suri, Past President, of FICCI and CMD, The Lalit Suri Hospitality Group stated that any country has to have healthy inbound and outbound tourism.
“Indian tourism has witnessed a major growth in the last few years and while we are at the threshold of massive growth, we must be cognizant of sustainability as well,” she added.
Ankush Nijhawan, Chairman, of FICCI Outbound Tourism Committee and Co-Founder, TBO.com and MD, of Nijhawan Group said that the global travel and tourism industry is expected to reach USD 2.6 trillion by 2027, growing at a CAGR of 8.2 per cent.
“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, the Embassy of Georgia to India, the Malaysia Tourism Promotion Board, Singapore Tourism Board also shared their perspectives during the session. (ANI)
