India's tourism sector to gain from global uncertainty, says WTTC CEO

4th largest, stable economy to get higher share of international tourists

India's tourism sector is poised for significant gains, potentially benefiting from shifts in global travel patterns amid geopolitical uncertainties, which have seen inbound numbers for the US fall for the first time, said Julia Simpson, chief executive officer (CEO) of the World Travel and Tourism Council (WTTC).

 

"The only economy in the world where we're seeing international visitor numbers dropping is actually the US at the moment," she said, pointing to data from the US Department of Commerce, which stated that 7 per cent drop in international visitors was seen in 2023 compared to 2019 levels.

 

"I think you will see some of those visitors looking further afield. If you are the fourth-largest economy in the world, you will also become a very important destination for international visitors, business leaders, and also people coming on leisure,” she said, positioning India as a prime beneficiary, which also gets inbound travel from its large Indian diaspora as they come home or visit family and friends. 

 

According to the latest data from the WTTC's Economic Impact Research (EIR), foreign tourists are set to contribute substantially more economic value to India's tourism sector, with their spending in the country projected to reach a record ₹3.2 trillion in 2025, an increase from ₹3.1 trillion in 2024, even if the annual growth numbers plateau, she said, indicating that India would attract a larger share of the global high-net-worth individuals.

 

"I'm not concerned because the international visitor spending numbers we’re looking at this year are already above 2019 (levels), which means that the people who are visiting you are higher spending individuals. That's a good thing," she said. According to the Ministry of Tourism data, India received 9.66 million foreign tourists in 2024, marginally up from 9.52 million in 2023.

 

Domestic tourism spending is expected to outpace inbound tourist spends in terms of percentage growth in 2025, with Indians projected to spend ₹16.8 trillion this year versus ₹15.5 trillion in 2024, which was 22 per cent above 2019 levels.

 

With international airports increasing to over 200 from 162 now, and improved rail and road connectivity, the 10-year outlook for the country's tourism sector is positive, with international tourist spending estimated to reach ₹4.6 trillion, and domestic tourist spending ₹32.7 trillion by 2035.

 

"These advances will ensure that travel and tourism end up representing almost 10 per cent of the Indian economy," she said. Currently, the sector "represents just shy of 7 per cent but we are seeing more and more people coming to India". As per WTTC data, travel and tourism contributed 6.4 per cent to India’s gross domestic product (GDP) in 2024, which is expected to rise to 6.6 per cent in 2025.

 

The travel and tourism sector contributed almost ₹21 trillion to the Indian economy last year, 20 per cent ahead of 2019, and supported an all-time high of almost 46.5 million jobs, equivalent to 9.1 per cent of total employment across India. The country also welcomed 20 million international visitors in 2024, which is 2.3 million more than in 2019.

 

Simpson underscored the critical requirement from the Indian government to increase its marketing spends to promote itself to global tourists, so as to “market itself better to get the high-net-worth individual travellers and younger travellers through social media". The government reduced funding for overseas tourism promotion in the 2025-26 Budget from ₹100 crore to ₹33 crore.

 

The top executive also said that the influx of international investment into India's hospitality sector signals a robust and attractive environment, with entry of foreign players and Indian hotel companies going public, projecting a thriving market.

 

"Getting international investors coming into your country is always a very good sign, because if they can invest, it means that the environment is propitious to investment. It’s a very healthy sign, the presence of strong home-grown talent, such as the Tata group, further strengthens this dynamic,” she said.

 

Simpson also said that the government should be cautious against over-taxing the sector, citing the UK as an example where increased taxes led to a decline in visitors, and instead bring out more digital-backed policies such as end-to-end e-visa procedures.