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Missed India tourism potential needs a strategic reset

India tourism

India offers unmatched diversity, yet its global tourism share stays low because structural gaps overshadow its natural advantages.

India tourism: Indian households often defer international vacations with the familiar line, “Apna India kya bura hai?” The sentiment blends pride, thrift, and a belief in India’s natural splendour. Foreign tourists view India differently. Many choose Vietnam, Thailand, Sri Lanka, and Indonesia—destinations that offer affordability, convenience, and consistent service quality. India’s attractions remain vast, but its tourism performance does not reflect this strength.

International tourist arrivals rebounded after the pandemic, in line with global trends captured by the UN World Tourism Organisation (UNWTO). Yet India’s global share remains around 1.4%, with limited gains in tourism receipts. France draws over 90 million tourists annually, while Thailand touches 35 million in a normal year. India’s more than 40 UNESCO World Heritage Sites, cultural depth, and natural variety still struggle to convert into steady demand.

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Structural gaps and a weak global brand

India’s rise to 39th position in the World Economic Forum’s Travel & Tourism Development Index reflects some improvement. However, the deficits in hygiene, tourist-handling skills, and basic service reliability continue to dilute visitor experience. These shortcomings shape global perceptions more deeply than promotional campaigns.

The visa regime also adds friction. While India offers e-visas, the process remains narrower and costlier than regional competitors offering broad visa-free entry or visa-on-arrival access. Recent moves like free 30-day e-visas for Russian travellers show agility but do not alter the wider impression of restrictive entry norms. For long-haul travellers comparing options, visa simplicity often decides itineraries.

High travel costs and patchy connectivity

India is often marketed as an affordable destination, but the actual costs of travel within the country tell a different story. Aviation turbine fuel (ATF) taxation keeps airfares elevated compared with Southeast Asia. Hotel tariffs in major destinations remain higher than in Vietnam or Malaysia. Weak inter-city public transport forces tourists into expensive private taxis. Poor integration between airports, railheads, and tourist circuits adds to the inconvenience. Economic competitiveness matters, and India is losing on this count.

Connectivity improvements under schemes like UDAN have added airports and new routes, but the gains remain uneven. Most international arrivals funnel through Delhi, Mumbai, Bengaluru, and Chennai. Tier-II and Tier-III cities—home to rich cultural, ecological, and spiritual assets—lack direct flights and reliable last-mile infrastructure. Tourist arrivals reflect this imbalance: the North zone attracts 35.62%, followed by the South at 26.27%, while the Northeast, despite its unique offerings, draws just 1.58%.

Digital frictions limit visitor experience

Tourism today depends heavily on digital convenience. India has strong domestic digital public infrastructure, but foreign tourists do not experience these benefits fully. UPI remains inaccessible to most foreign visitors, limiting seamless payments that domestic travellers take for granted. DigiYatra improves airport movement but does not extend to hotels, monuments, or public transit. Digital interpretation tools, multilingual signages, and dynamic maps remain sparse across destinations.

Countries such as Japan and Singapore offer QR-based guides, integrated ticketing systems, and consistent digital support. India’s fragmented digital experience reduces ease of travel and reinforces the perception of unpredictability.

Safety concerns, scams, and tourist harassment

Pollution and overcrowding shape the first impressions of Indian cities, but deeper concerns influence visitor decisions. Persistent reports of scams, touting, overcharging, and harassment in major tourism hubs affect credibility. Women travellers, in particular, cite safety concerns highlighted frequently in international media, travel advisories, and platforms like TripAdvisor.

Tourist police units exist in some states, but coverage is uneven and visibility remains low. There is no national system for grievance redressal, real-time support, or fast-track tourist protection. India’s national brand suffers when personal safety does not feel assured.

Underuse of heritage and cultural assets

India’s heritage wealth is extraordinary, yet it remains underutilised. Many Archaeological Survey of India (ASI) sites lack clean toilets, clear signage, interpretation centres, certified guides, and night-time programming. Heritage towns—from Varanasi to Hampi—struggle with congestion, unregulated construction, weak waste management, and absence of coordinated city-level tourism plans.

Countries like Italy, Jordan, and Egypt have transformed heritage into economic engines through structured public–private partnerships, curated experiences, and professional visitor management. India’s fragmented approach limits the potential of assets that should be global magnets.

Budget cuts undermine tourism ambitions

India ranks as the eighth-largest tourism economy, contributing $231.6 billion, according to the World Travel & Tourism Council (WTTC). The WTTC projects India could climb to fourth place within a decade. Yet this projection assumes strategic investment and consistent global engagement.

The Union Budget 2025–26 maintained tourism expenditure at Rs 2,541 crore, but sharply reduced outlays for international promotion and Market Development Assistance from Rs 33 crore to Rs 3.07 crore. Without strong global marketing, India’s tourism brand cannot compete with aggressive campaigns run by Thailand, Indonesia, or the UAE.

Domestic tourism is thriving and supports heritage circuits, pilgrim routes, wildlife parks, and wellness retreats. But domestic traffic alone cannot deliver foreign exchange earnings or global mindshare.

India tourism: A strategy to compete globally

India needs a unified tourism strategy rooted in global competitiveness rather than domestic consumption. The first step is visa reform—broader eligibility, faster approvals, and benchmarking against regional peers that have used liberal entry norms to scale tourism.

Marketing must evolve. “Incredible India” succeeded because it was consistent, data-driven, and globally visible. The campaign now needs a digital overhaul, including targeted promotions in key source markets, partnerships with global travel platforms, and destination-specific storytelling.

Infrastructure must improve where it matters: last-mile connectivity, multilingual services, sanitation, public transport integration, and quality lodging. ASI sites require professionalisation through partnerships, curated experiences, and scientific visitor management.

If pursued vigorously, tourism could contribute Rs 42 trillion to GDP and support 64 million jobs by 2035, according to WTTC estimates.

India does not lack attractions. It lacks predictable service quality, digital ease, safety assurance, competitive pricing, and polished heritage management. Unless these gaps are addressed with seriousness and urgency, India will remain a domestic tourism giant and a global tourism lightweight. A coherent national strategy—grounded in reform, investment, and global benchmarking—can unlock tourism as a strong engine of growth, jobs, and soft power.

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