India to host 9 mn foreign tourists

India is expected to receive a record nine million foreign tourists in the current calendar year, growing over 12 per cent from the eight million visitors last year. The increased arrivals along with domestic travel have improved the occupancy of hotels.

"We may reach around 9 million this year. A key factor behind the growth is the e-visa regime. It has now come into full implementation. It is a fact that it was announced in the end of 2014 but it could not have an effect in 2015 as initially it was done for 113 countries. Now, we have 150 countries. Moreover, there is always a reaction time between launch and use," said Vinod Zutshi, secretary, ministry of tourism. The rupee remains weaker, making travel to India affordable.

India does not include non-resident Indians (NRIs) while counting the tourist arrivals from overseas. "We don't count the NRI arrivals in the inflow of foreign tourists. If I were to add them, it will add another 5.5 million. Most countries do it," said Zutshi.

According to data with the ministry of tourism, 5.59 million tourists visited India in the first eight months of 2016, up 10.2 per cent from same period last year. Arrivals had grown by just 4.6 per cent in corresponding period last year.

"There is a double-digit growth happening in both inbound and outbound travel.

Airlines are pegging fares lower and it is a trigger. Infrastructure has improved though a lot remains to be done," said Ankur Bhatia, executive director of Bird Group, which has interest in hospitality and aviation services.

The higher occupancy for domestic hotels has also translated in improved tariffs. According to data from hotel consulting and research firm HVS, the average rate for a Mumbai hotel increased three per cent in 2015 and is expected to grow 10 per cent in 2016. Occupancy could improve from 72 per cent in 2015 to 73 per cent this year. The occupancy level in Delhi, which saw sizeable addition in supplies as several new hotels came up in Aerocity, improved from 62 per cent in 2014 to 67 per cent in 2015. HVS expects occupancy to rise further to 72 per cent in 2016 and rates to go up by eight per cent. Other leading cities like Bengaluru and Hyderabad are also projected to see better occupancy.

Tourists are a major source of foreign exchange earnings too. The ministry said foreign exchange earnings from tourism grew nearly 8 per cent to $14.92 billion in the first eight months this calendar year. The ministry compiles foreign tourists arrivals on the basis of data received from the Bureau of Immigration. The US, Bangladesh and the UK are the top three source countries accounting for about 40 per cent of arrivals. Forex earning is compiled on the basis of data available with the Reserve Bank of India.