Opinion: India has window of opportunity to unlock tourism boom from Europe

India's improving value perception, geopolitical stability and diverse offerings create a rare opportunity to sharply increase foreign tourism revenues from Europe if approached systematically

There is a window of opportunity for India to step-change foreign tourism revenues in the coming year, especially from Europe.

 

If taken up in ‘mission mode’, this can be one of the most high-potential growth opportunities for India as well as individual states. It can also pave the way for a faster longer-term growth trajectory for foreign tourism growth. But it will not be unlocked by a media campaign alone, or by another clever slogan. It will require something deeper: understanding the European tourist far better, and then designing and delivering customer value much more deliberately.

  The potential of foreign tourism for India, and for every state is obvious. Our variety, heritage, cuisine, landscapes, and civilisational depth speak to that. Also obvious is that our global market share of foreign tourists is underwhelming. Increasing this share sustainably has crucial benefits – economic activity, employment, foreign exchange etc.

 

 

So why is NOW a good time to talk about this? And why the focus on Europe?

 

There are two immediate reasons.

 

First, currency-led value perception. India’s currency has depreciated vs the Euro much more than those of several other tourist-destination countries.  Between April 2024 and April 2026, the euro strengthened by roughly 25 per cent against the rupee. Over the same period, it was broadly flat to weaker against some other important Asian tourism currencies. From a European traveller’s point of view, that means India’s relative affordability has improved materially — by something like 15–30 per cent versus several other major tourist options, including Thailand and Malaysia, depending on the comparison window. Other things being equal, India today looks like significantly better value for money than it did two years ago.

 

Added to that, Europe is facing inflationary pressures and economic uncertainty over the past few years due to the Russia-Ukraine War and, now, the US-Israel-Iran war. Europeans are therefore likely to be more price-sensitive than ever before, when considering their tourism options. Indian destinations become even more attractive in that context.

 

Second, with increasing geo-political tensions, the alternative destinations for vacations, conferences, visits, adventures etc, will force a serious re-think by prospective European tourists. Safety is paramount and uncertainty is to be avoided. From that perspective as well, it’s the right time to make India (and each Indian state) to present itself as a preferred option.

 

While the window of growth opportunity is clear, it cannot be taken for granted. There are still plenty of options for the European tourist, and the competition is fierce. That’s why taking full advantage of it means treating it not just as a media/communications opportunity but rather as a customer-experience opportunity that is designed end-to-end to give superior value. And done at scale!

 

It needs a systematic approach, accomplished with speed and thoroughness. The steps are clear.

 

Set an ambitious but realistic goal: Out of about 340 million European tourist trips (last year’s figures), currently less than one per cent (about 2.5 million) were destination India. Targeting a small fraction to increase that to 2.5 per cent  (about 7.5 million), and assuming each tourist spends about $1,500-$2,500 (which is a fair estimate), can itself add $7.5 billion-$12.5 billion to the current $34 bn Indian foreign tourist industry. Hence, $50 bn-plus could be a very good goal to set.

 

Gain deep insights about the European tourist. Tourists do not buy ‘India’ in the abstract. A European tourist is making a considered purchase: a family holiday, a cultural journey, a wellness break, an adventure, a conference trip, a work-leisure extension, or something else. Each of these is a different job to be done. Each comes with its own expectations, anxieties, trade-offs and triggers of delight.

 

That means the starting point cannot be destination-first. It has to be customer-first.

 

Design the experiences end-to-end for each cohort, based on these insights, to make it competitive and delightful. This requires iterative testing, to find the ideal but practical and deliverable offering. It would also identify choke points which would need to be de-bottlenecked or simplified. Today, this testing can be done at scale rapidly, so it doesn’t require guessing nor uninformed judgment.

 

Orchestrate the entire private and public sector to deliver based on these winning experience designs. It means everyone knowing the goal, the role they play and having the resources, skills, and permission to fulfill that role. This is always the hardest part. However, when taken as mission mode – as was done with Covid, for example – it can be done.

 

Last come the marketing communication campaigns, designed not only as creative big ideas, but also specifically answering the needs of these tourist cohorts, to raise awareness and help them choose better.

 

This is also not only an overall India mandate. It is a state-level opportunity, as well. Every state needs to define the spaces they can own in the European tourist’s mind and execute their own plans with focus.

 

When growth is challenging, as India finds today, capturing new opportunities systematically, to gain value is vital.  Foreign tourism, especially from Europe, is one such opportunity not to be missed! 

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The author is Managing Partner, RedVent Strategy & Design Ltd

  Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper