Indian tourists to spend $18.8B on overseas travel in 2024
What's the story
A report by FICCI-Nangia predicts that Indian tourists will spend an estimated $18.82 billion on international travel in 2024, as the sector recovers to pre-pandemic levels, and new destinations gain popularity. The study, titled 'Navigating Horizons: The Rise and Future of Indian Outbound Tourism,' reveals that approximately 28.2 million Indians traveled abroad last year. This surpasses the nearly 27 million who did so in 2019, when they spent $28 billion on foreign trips.
Remittance growth
Outward foreign exchange remittances to see significant rise
The FICCI-Nangia report also forecasts a substantial rise in outward foreign exchange remittances, expected to average $1.42 billion per month in 2023-24. This is a significant increase from the $400 million monthly average recorded in 2018-19. However, the current spending projection for Indians traveling abroad, is lower than the previous estimate of $42 billion from two years ago due to geo-political factors influencing travel trends.
Tourism growth
Indian outbound tourism projected to triple by FY30
Despite the lower current projection, the report anticipates that spending by Indian travelers overseas will grow at a compounded annual growth rate of 11.4% to reach about $55 billion by 2034. The number of outbound departures from India is expected to nearly triple to 50 million by FY30, driven by improved connectivity with more direct and affordable flights and an increasing desire for international travel.
Travel trends
New destinations gain popularity
The report highlights that new popular destinations for Indian tourists include Egypt, Azerbaijan, Georgia, Indonesia and Malaysia due to relaxed visa norms. Currently, 50 nations offer visa-on-arrival and e-visa facilities to Indians, while 27 countries allow visa-free entry. The surge in outbound tourism from India is attributed to rising disposable incomes and an expanding middle class population.
Destination preferences
Middle Eastern destinations attract over 30% of Indian travelers
More than 30% of Indian travelers are choosing Middle Eastern destinations like UAE, due to its proximity and significant Indian diaspora presence. Travel from India to the US has seen a significant increase of 59% from 2019 levels, despite overall overseas arrivals in the US being 7% below pre-pandemic levels. Japan and Vietnam have also become favored destinations for Indian travelers, with a 53% increase in visitors to Japan since 2019 and new direct flights to Vietnam tripling passenger traffic.