Thaw in India-China relations set to boost foreign tourist arrivals

Direct flights resumption, tourists visas to provide tailwinds for Indian travel and tourism sector

With a visible thaw in the India-China relationship and direct flight resumption between the two countries likely soon, the Indian travel and hospitality sector has turned bullish, preparing for higher demand of foreign tourists in the coming months.

 

The Indian Association of Tour Operators (IATO) anticipates at least a 20-25 per cent boost to the tourism business from China in the next 12-18 months. But this would be possible if visa facilitation and promotional campaigns are well coordinated.

 

While the Centre has not officially announced resumption of direct flights, Ravi Gosain, president, IATO, and Rajiv Mehra, general secretary, Federation of Associations in Indian Tourism and Hospitality (FAITH), said they expect this to start by October. 

 

“Travel aggregators and tour operators are actively preparing curated itineraries, improving digital booking systems, and enhancing their partnerships with Chinese counterparts to cater to the expected demand,” said Gosain. 

 

Mehra said that Indian carriers are preparing to start their operations as soon as the government announces it.

 

He said that with foreign traffic from Europe being down by 5-8 per cent in 2025, the possible resumption of direct flights will help India cross its pre-Covid foreign tourist arrivals. 

 

According to the latest data by the Ministry of Tourism, India had recorded 626,000 foreign tourist arrivals in April – down by 19.2 per cent compared to 2019.

 

India had received around 300,000 Chinese tourists in 2019, after which Covid prompted countries to close their borders.

 

However, the two most populous nations in the world did not lift travel restrictions for each others’ citizens. 

 

“Before the suspension, five carriers — Air India, China Eastern, China Southern, Air China, and China Airlines — connected the two countries. Their return will make travel faster, more convenient and cost-effective. This should positively impact India’s foreign tourist arrival numbers from China,” said Bharatt Malik, senior vice-president, flights and hotel business at online travel platform Yatra.

 

The Ministry of External Affairs, in a release on Sunday, stated that Prime Minister Modi and Chinese President Xi Jinping noted the need to strengthen people-to-people ties through direct flights and visa facilitation. This could pave the way for resumption of the Kailash Manasarovar Yatra.

 

“Historically, Chinese visitors are among the highest per-capita spenders, especially in luxury hospitality, heritage circuits, and wellness tourism. Given that Chinese arrivals are expected to reach over 200,000 in 2025–26, the travel industry is looking at a meaningful revival,” said Karan Agarwal, director, Cox & Kings.

 

“The high estimated per-tourist spend (around ₹1.5 lakh) will benefit hotels, local guides, transport operators, and regional economies. Expect cities in the Golden Triangle, spiritual destinations, and culturally-rich states to see strong inbound traffic,” he added.

 

Not just leisure, business-related travel is also expected to go up, boosting the meetings, incentives, conferences, and exhibitions (MICE) sector.

 

“This will give a significant boost to our travel business across the company’s segments like leisure, business, and MICE,” said SD Nandakumar, president and country head, holidays and corporate tours at SOTC Travel.

 

He added that while China has always held a strong allure for Indians with sightseeing, culture, and shopping, it is also a powerful driver for mega trade shows for business travellers. 

 

“Access and connectivity are vital elements towards frictionless travel. As a next step, quick updates on flight schedules and visas will be mission critical in planning our China products if we are to capitalise on the upcoming festival season, India’s second-largest volume driver,” he said.  

 

“China connectivity also opens the doors to China-plus products, and neighbouring destinations, another opportunity that we plan to leverage. For the corporate MICE incentive segment, we are looking at the mid-to long-term horizon to see an uptick,” Nandakumar added. 

 

Rajeev Kale, president and country head, holidays, MICE, visa, Thomas Cook India, said the company is already witnessing initial demand from Indian travellers. This follows the announcement of direct flight resumption between India and China. 

 

“We look forward to partnering with the China tourism department to co-develop products and itineraries that resonate with Indian travellers and to jointly promote China as a key destination. We also see reciprocal opportunities for inbound travel to India, particularly around Buddhist heritage circuits. Provided geopolitical stability continues, we believe China will be a major market for both outbound and inbound travel in the years ahead,” Kale added.

 

The move signals an exciting long-term opportunity for the Indian travel and tourism industry, said Manjari Singhal, chief growth and business officer at Cleartrip.

 

“The real opportunity lies in the long term. With an estimated 200 million Chinese tourists expected to travel overseas by 2030, China has the clear potential to become the top source market for India. It would possibly even surpass traditional leaders like the US and Bangladesh,” she said. 

• Bullish on ties 
• IATO anticipates a 20-25% boost in tourism-related business from China within the next 12 to 18 months
• Travel aggregators and operators are preparing to enhance their partnerships with Chinese counterparts
• India had received around 300,000 Chinese tourists  in 2019
• The estimated per-tourist spend — around ₹1.5 lakh —is likely to benefit regional economies