Reviving India’s Tourism Sector: Focus on Foreign Tourist Arrivals and Industry Demands

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Tourism Industry in India Latest News

The Indian Association of Tour Operators (IATO) has asked Prime Minister Narendra Modi to make an immediate budgetary allocation of Rs. 1,000 crore under the ‘Incredible India’ campaign.

India’s tourism sector is one of the largest contributors to its economy, generating employment, foreign exchange, and socio-cultural growth.
It plays a critical role in promoting India’s heritage, diversity, and natural landscapes across the world.
According to the Ministry of Tourism, the industry contributed nearly 5.03% to India’s GDP (direct and indirect) in pre-COVID years and supported millions of jobs across formal and informal sectors.

Cultural and Natural Diversity: India boasts 43 UNESCO World Heritage Sites, diverse ecosystems, spiritual tourism hubs, and medical tourism facilities.
Robust Domestic Market: With a growing middle class, domestic travel acts as a stabilizing force during international slowdowns.
Soft Power and Diplomacy: Tourism contributes to India’s image globally and acts as a diplomatic channel through cultural exchange.

While domestic tourism is recovering rapidly, foreign tourist arrivals (FTAs) are lagging. Key challenges include:
- Complex Visa Processes: Lengthy documentation, high fees, and limited group visa options deter many international travellers.
- Air Connectivity Gaps: Limited direct international flights to second-tier cities restrict access to unexplored destinations.
- Inadequate Infrastructure: Last-mile connectivity, poor sanitation, and underdeveloped hospitality in many areas remain persistent issues.
- Insufficient Promotion: Compared to countries like Thailand or UAE, India invests less in global tourism marketing campaigns.

Over the years, the Government of India has introduced several policies to revitalize tourism, including:
- e-Visa Expansion: Covering over 150 countries to simplify tourist entry.
- Dekho Apna Desh & Swadesh Darshan schemes: Focused on domestic travel and infrastructure upgrades.
- Incredible India Campaign: India’s flagship international marketing initiative.
  However, stakeholders argue that more targeted action and better implementation are needed, especially for the foreign tourism segment.

In a recent appeal, the Indian Association of Tour Operators (IATO) urged Prime Minister Narendra Modi to immediately allocate Rs. 1,000 crore under the ‘Incredible India’ campaign and establish an ‘India Tourism Board’ under the PM’s leadership.
The proposal comes in light of India’s continued underperformance in attracting foreign tourists.
Despite a post-pandemic recovery, foreign tourist arrivals in 2023 stood at 9.52 million, only 87% of the 2019 figure of 10.93 million.
While this reflects a 47.89% increase over 2022 (6.44 million), the numbers remain below pre-COVID benchmarks.
IATO highlighted that inbound tourism plays a vital role in foreign exchange earnings and employment, and it operates independent of global trade tariffs, making it a stable economic contributor.
The association emphasized the need for timely action before the upcoming tourist season to maximize impact. Specific recommendations include:
- Visa Process Reforms: Expand e-Visa options, fast-track group visas, and waive fees for select countries.
- Air Connectivity: Incentivize international airlines and charter services to connect with tier-2 and tier-3 destinations.
- Unified Tourism Board: A centralized body to coordinate tourism promotion, policy, and infrastructure at the national level.