Indian travel and tourism set for a promising decade ahead

The Indian travel and tourism market is experiencing a significant transformation with the rise of digital platforms and online booking services, making travel more accessible and convenient for consumers. According to Statista, the market is expected to generate revenue of $23.72bn in 2024, with a projected annual growth rate of 9.62% leading to a market volume of $34.25bn by 2028.

One of the key trends in the Indian travel and tourism market is the increasing popularity of adventure tourism and wellness retreats, catering to the evolving preferences of travellers. Additionally, travellers are seeking unique and authentic experiences, driving the demand for off-the-beaten-path destinations and cultural immersion.

The sector is also witnessing a surge in talent demand, with an estimated addition of 5.82 crore jobs by 2033. Despite the challenges posed by the pandemic, the sector remained resilient and accounted for 39 million jobs in 2020, constituting 8% of the total workforce in the country. Following the pandemic recovery, the sector experienced a swift resurgence, with talent demand in tourism surging by 44% in August 2023 alone.

The travel and tourism sector significantly contributes to India’s economy, generating INR 15.9 lakh crore in 2022, with an estimated contribution of INR 16.5 lakh crore in 2023. The top states attracting domestic tourists include Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, and Maharashtra, while cities like Delhi NCR, Mumbai, Bengaluru, and Pune have witnessed a surge in hiring.

With the growing middle class and rising disposable incomes in India, coupled with government initiatives to promote tourism and improve infrastructure, the travel and tourism industry is poised for continued growth. The sector’s transformation is evident, with emerging subsets such as sustainable tourism, adventure sports tourism, and cultural tourism gaining traction. The future looks promising for the Indian travel and tourism market as it continues to evolve to meet the changing needs and preferences of travellers.