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India’s travel trade industry is on the brink of a resounding revival as it gears up to embrace the first full-fledged foreign tourist season since the onset of the Covid-19 pandemic in 2019. The industry, in synergy with government initiatives, is poised to welcome a surge of foreign visitors that is projected to surpass the combined total of the past two years. With India’s concurrent role as the G20 Presidency, this upcoming season gains paramount importance, setting the stage for a significant influx of inbound tourist groups.
This convergence of events places a spotlight on the effectiveness of the current destination marketing plans and the urgent need for a robust and aggressive promotion of ‘Incredible India’ on the global stage.
Doing a comprehensive analysis of the industry’s preparedness and the effectiveness of existing destination marketing strategies, the industry stakeholders feel it is imperative to promote ‘Incredible India’ on the global stage aggressively.
In line with the rejuvenation of domestic tourism, the Ministry of Tourism has also orchestrated a series of initiatives aimed at promoting inbound tourism as well. Ranging from promotional events and roadshows to workshops and social media campaigns, the government is taking efforts, but the question remains – Is this enough?
Harnessing the power of ‘Incredible India’: A proactive government approach
Aligned with the aspirations of the Indian travel and tourism industry, the Indian government and the Ministry of Tourism have embraced a forward-looking outlook for inbound tourism promotion. As India’s G20 Presidency extends until November 30, a window of opportunity exists to showcase the country’s cultural richness, festivals, and gastronomic delights to a global audience. Social media emerges as a pivotal tool for conveying India’s readiness to welcome tourists, employing vibrant campaigns and engaging vlogs to communicate safety assurances, particularly for women travellers.
To fast-track the growth of inbound tourism this year, the Ministry of Tourism launched the ‘Visit India Year 2023’ initiative to unlock the untapped potential of tourism in India and make the country a 365-day destination. The goal is to attract tourists to India by showcasing its diverse tourism options, including culture, heritage, spirituality, and natural beauty while also prioritising sustainable, rural, medical, and MICE tourism.
Country’s Tourism Minister, G Kishan Reddy mentioned that each foreign delegate of G20 will be a brand ambassador of India’s culture, heritage, and tourist destinations. “Ministry of Tourism is coordinating with Indian missions and other stakeholders to have a conducive environment for foreign visitors this year. More than one lakh foreign delegates will visit India this year, and they will be showcased the entire gamut of India’s culture, including monuments and festivals.”
What data and statistics say?
According to the most recent data released by the government on the number of inbound visitors, over 2.5 million Foreign Tourist Arrivals (FTAs) visited India in the first quarter of this year. This figure is 20 per cent short of the number achieved during the pre-pandemic era in 2019. With an 80 per cent recovery to pre-Covid levels, the industry is hopeful of a bumper recovery this year.
During January-March 2023, a total of 25,29,766 FTAs visited India as compared to 7,84,750 in January-March, 2022 and 31,79,792 in January-March 2019 registering a growth of 222.4 per cent in comparison to 2022.
If we also take April 2023’s numbers into account, the total number of FTAs reaches close to 3.1 million, which is almost double the number of foreign tourists received last year but still 28 per cent less than the figure in 2019.
With the recent data, India’s top 15 tourism source markets are Bangladesh (20.85 per cent), USA (16.85 per cent), UK (10.56 per cent), Canada (5.40 per cent), Australia (4.52 per cent), Sri Lanka (2.95 per cent), Malaysia (2.76 per cent), Russian Federation (2.59 per cent), Germany (2.52 per cent), France (2.20 per cent), Nepal (1.94 per cent), Singapore (1.57 per cent), Thailand (1.44 per cent), Japan (1.28 per cent) and Italy (1.19 per cent).
Last year, India’s top inbound source market was the USA with a 22.19 per cent share and 13, 73, 817 FTAs, marginally superseding India’s traditionally top source market, Bangladesh, which got 20.29 per cent share and sent 12,55,960 visitors. Globally, the US and China are top destinations which spend the most on tourism.
Based on the credit data of travel heads from the balance of payments of RBI, the Ministry of Tourism estimates monthly Foreign Exchange Earnings (FEEs) through tourism in India, both in rupee and dollar terms. During January-December, 2022, the FEEs were INR 1,34,543 crore as compared to INR 65,070 crore during the same period in 2021. This indicates a hike of approximately 106.44 per cent.
This year, between January and February 2023, the FEEs were INR 36,927 crore as compared to INR 7,869 crore during the same period last year and INR 36,164 crore in the first two months of 2019. This indicates a growth of 369.30 per cent and 2.11 per cent with respect to 2022 and 2019 respectively.
The number is expected to further go up this year during the peak October – December 2023 quarter.
Last year, Gujarat received the most number of foreign tourists followed by Maharashtra and West Bengal. Pre-Covid, Tamil Nadu and Uttar Pradesh used to top the list with the most number of inbound tourists visiting these states. Taj Mahal still gets the greatest number of foreign tourists followed by Agra Fort and Fatehpur Sikri.
United stance of the travel trade: A call to showcase India’s charm
The travel trade industry is unequivocal in its recognition of India’s immense potential as a tourism hotspot. The G20 Presidency further presents a unique opportunity to bolster the country’s global visibility through conferences, exhibitions, and meetings. However, the onus lies on the industry stakeholders to build upon this foundation and establish India as a premier travel destination.
The Indian tourism industry is preparing for the first full-fledged inbound tourism season since 2019, with the expectation that foreign tourist arrivals will surpass pre-pandemic levels. However, the stakeholders feel the high cost of airfares and hotel rates is challenging, and the industry is also understaffed.
When asked if India is ready for a bumper inbound season this year, Rajiv Mehra, President, IATO in conversation with ETTravelWorld said the answer is both yes and no.
He said India has built better infrastructure, and there is an additional buzz due to G20 as well. Most importantly, there is a huge backlog of bookings since 2019. “We can say, it will be the first normal season for us.”
“On the flipside, the government has reduced the marketing budget, which is hindering efforts to promote India as a destination aggressively. There is a need to streamline visa processes and reduce taxes to make the country more competitive. The industry needs to market itself aggressively and distribute the tourist flow evenly across the country. The G20 Presidency is expected to boost tourism, but sustaining the momentum is a challenge. The industry needs a long-term plan for marketing itself globally,” he added.
Rethinking strategies: ‘Dekho Apna Desh’ and beyond
The post-pandemic landscape demands a recalibration of tourism strategies. The ‘Dekho Apna Desh’ initiative has unlocked avenues for domestic exploration, and its success underscores the potential for fostering a renewed sense of pride in India’s offerings. Additionally, India’s growing infrastructure, new airports, and potential for hosting weddings and conventions with new MICE venues position the nation as a leading destination choice for both local and international travellers.
While the development and promotion of tourist destinations and products primarily fall under the purview of State Governments and Union Territory Administrations, the central government’s role in facilitating these endeavours remains pivotal.
According to Jyoti Mayal, President, TAAI, the G20 Presidency has given India a plethora of opportunities, but the eventual responsibility lies in the hands of the tourism stakeholders to make the most of them. She said social media marketing has an essential role to play to showcase the readiness of India to host foreign tourists.
“With aggressive social media campaigns, the government should focus on developing vlogs and video messages and letting people know internationally that India is ready to welcome tourists. There is a need to create a buzz while addressing the safety issues for women travellers to mention categorically. With the world opening in a phase-wise manner and wooing travellers, it is imperative to deliberate how India may facilitate a one-of-a-kind tourism experience to its admirers,” she said.
PP Khanna, Board Member, FAITH feels that the industry needs to aggressively promote ‘Incredible India’ and plan for the future. He suggested that government can do more to simplify e-visa and streamline visa fees, reduce taxation on hotels, and cap airfares and hotel rates.
“We are not doing enough to market ourselves globally. The publicity budget for source markets like the UK and Canada has been substantially reduced. Our competitors like Sri Lanka, Thailand, Indonesia, and Dubai have a major presence around the world and we must make our presence felt. Industry together needs to step up its presence in the global arena. We must build on the momentum and plan for the next 5-10 years and become a major player in the tourism sector,” he said.
Cultivating long-term plans
The Federation of Associations in Indian Tourism & Hospitality (FAITH) is advocating the need to aggressively promote ‘Incredible India’ and plan for the future. However, there are challenges such as high hotel room rates and airfares, as well as a lack of global marketing presence.
With respect to overseas marketing and promoting India abroad, the industry feels this year the bulk of job has already been done via the G20 Presidency but the country as a destination needs to formulate long-term promotional plans to reap extensive benefits.
Mehra said that the industry is putting its best foot forward but the rising demand and lack of skilled staff is going to become an issue. “Hotels would be full chock a bloc with abnormally high room rates. The tourist flow should be distributed evenly throughout the country. States should come forward and market themselves aggressively. They should also be present in the international travel marts that happen globally,” he said.
A bright outlook: resilience and renewed focus
The resilience demonstrated by the travel trade industry, coupled with the government’s strategic planning, heralds a promising era for India’s inbound tourism. The nation’s cultural diversity stands as its greatest strength, and through tourism, this unique tapestry can be unveiled to the world. With the anticipated boost from the G20 Presidency, India’s ability to cater to diverse traveller preferences, particularly the burgeoning interest in outdoor experiences, positions the nation at the cusp of an extraordinary resurgence.
Mayal asserted that this pivotal moment requires collective action to translate year-round efforts into substantial results, thereby establishing India as a global tourism hub. “Beyond this, fostering neighbourhood tourism adds to the equation, transforming the region and India into an influential tourism force,” she added.
Sharing his views on the upcoming inbound season, Madhavan Menon, Executive Chairman, Thomas Cook India said India has indeed eased certain visa restrictions and the weakening rupee makes it more attractive for foreigners to visit India however, fuel prices need to remain stable to travel more accessible.
“The US travel situation is still an issue. Forward bookings at Sita India are looking good and despite high airfares and inflation, long-haul bookings are coming back. The G20 Presidency is expected to bring more publicity and bookings, but Southeast Asia is still facing challenges with the absence of Chinese tourists. Overall, the timing is right for the inbound business to re-emerge, and bookings are showing growth towards pre-Covid levels,” he said.
With Independence Day falling on Tuesday, travellers have the perfect opportunity to make this an extended long weekend by taking a leave on Monday to travel. And just like how long weekend travel has transformed, so have travellers’ preferences. Gone are the days when travellers were content with just a room; they’re now craving a full-fledged experience.
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