Indian Tourism Sector Breaks All Records of Growth, International Spending Surpasses Pre-Pandemic Levels

The Indian tourism industry has marked a milestone in 2024, as the international visitor spending outreach a record of Rupees 3.1 trillion, representing a 9% increase over 2019 pre-pandemic levels, according to the latest Economic Impact Research (EIR) report published by the World Travel and Tourism Council (WTTC).

The comprehensive study reveals that the travel and tourism sector now supports 46.5 million jobs, equivalent to 9.1% of the country’s total employment, signaling a robust recovery that has exceeded pre-pandemic benchmarks across multiple metrics.

India’s international visitor spending hit Rs. 3.1 trillion in 2024, breaking records and signalling a strong tourism comeback, as highlighted in the WTTC report. The tourism sector’s share in the economy now stands at Rs. 21 trillion, marking a 20% increase compared to 2019 levels, demonstrating its critical role as a key economic driver for the country.

Domestic travel spending has shown even stronger growth, reaching Rs 15.5 trillion in 2024, which represents a 22% increase from pre-pandemic levels. This dual growth in both international and domestic segments underscores the comprehensive recovery of India’s tourism ecosystem. According to the data, international tourist arrivals reached 20 million in 2024, approximately 2.3 million more than the 2019 figures. The distinction between Foreign Tourist Arrivals (FTAs) and International Tourist Arrivals (ITAs) provides crucial context for understanding the recovery pattern.

For 2023, FTAs recorded 9.52 million visitors, representing 87% of 2019 levels, while ITAs reached 18.89 million, already surpassing pre-pandemic numbers. This differential highlights the varying recovery rates across different tourist categories.

Julia Simpson, President of WTTC, acknowledged India’s exceptional performance, stating that the country’s tourism sector is experiencing unprecedented growth with record numbers of international visitors. She highlighted the government’s plans to simplify the e-visa process, noting that making it easier to visit India will help unlock additional international arrivals and spending. The WTTC has validated its commitment to India’s tourism growth by signing a Memorandum of Understanding with the World Travel and Tourism Council India Initiative (WTTCII) to boost India’s share in the global tourism market while aligning national and international tourism objectives.

Madan Prasad Bezbaruah, former Secretary of the Ministry of Tourism, Government of India, provided nuanced insights into the recovery dynamics. While acknowledging a positive trajectory, he noted that earnings in dollar terms remain below 2019 levels, with currency fluctuations presenting a complex picture that requires careful consideration and analysis. Bezbaruah also highlighted critical challenges facing the industry, particularly a shortage of qualified manpower. “The industry already faces a shortage of qualified manpower, and as demand grows, this gap will widen. We must plan for skilling, especially in technology, and extend tourism into tier 2 and tier 3 cities,” he stated, emphasizing that employment generation extends beyond direct jobs, with indirect job creation through supply-side growth being equally critical for sustainable development.

The former tourism secretary outlined several key areas requiring attention for sustained growth, such as skill development and technology integration, geographic expansion, brand positioning, policy framework, and global marketing.

The WTTC forecast presents an optimistic position for India’s tourism sector. For 2025, the organization projects that travel and tourism will contribute Rs. 22 trillion to the economy, generating 48 million jobs. International spending is expected to hit Rs. 3.2 trillion, while domestic traveller spending could reach INR 16 trillion. These projections suggest a continued robust growth trajectory beyond the current recovery phase.

The sector’s potential for doubling its contribution to the national economy, potentially reaching Rs. 42 trillion while employing approximately 64 million people, helps in positioning tourism as a cornerstone of India’s economic strategy. India’s tourism sector recovery represents more than a return to pre-pandemic levels; it demonstrates the industry’s resilience and potential for sustained growth. With record-breaking international spending, robust domestic travel, and strong employment generation, the sector is well-positioned to play an increasingly vital role in India’s economic development.

With the government support, industry collaboration through initiatives like the WTTC-WTTCII partnership, and strategic focus on addressing structural challenges, India’s tourism industry is poised for continued success in the global marketplace.