New Delhi:
Outbound travel from India will exceed $42 billion by 2024, and the government could make certain policy changes to boost this growing market, a report said.
The report’ entitled ‘Outbound Travel and Tourism – An Opportunity Untapped’ by Nangia Andersen LLP in partnership with FICCI, highlights the emerging Indian travel market and outlines a framework for creating better value for money for Indian tourists and travelers.
To facilitate business and advance the interests of Indian companies engaged in outbound travel, the government could consider steps such as increasing direct connections to popular and emerging destinations, allowing foreign cruise ships to enter the Indian waters, alongside concerted and coordinated multi-front efforts to propel the outbound tourism market, the report said.
Nangia Andersen LLP Head – Government and Public Sector Advisory Suraj Nangia said Indian outbound tourism will exceed $42 billion by 2024.
“We will soon be the most populous country in the world with the fastest growing economy. The Indian outbound travel market is one of the fastest growing markets worldwide with a purchasing power of about 80 million passports, especially among the middle class.”
The report noted that allowing foreign cruise ships to include Indian destinations as stopovers would boost both inbound and outbound tourism and increase revenues for Indian ports.
With a growing economy, a young population and a growing middle class, India is ideally positioned to become one of the most lucrative outbound tourism markers in the world. Europe sees 20 percent of travelers from India’s outbound traffic.
Ten percent travel to Australia and New Zealand, while the rest of the traffic goes to Southeast Asia.
Nangia Andersen LLP Partner – Government and Public Sector Consulting Poonam Kaura said, “With the positive response of foreign delegations and their policies, our government can certainly establish bilateral relations with tourist-friendly countries for both inbound and outbound tourists”.
In 2021, Indians spent about $12.6 billion on outbound travel, compared to $22.9 billion in 2019. While the reason for the drop in spending could be due to the pandemic, but these numbers point to the massive value that can be obtained from Indian outbound travelers, the report added. PTI JD MR MR