India must ease visas, boost connectivity to unlock tourism growth: WTTC

Gloria Guevara says India can accelerate tourism growth through visa reforms, better connectivity and higher international promotion as the sector's GDP contribution is set to rise

The World Travel and Tourism Council (WTTC) projects India's travel and tourism sector to contribute 6.7 per cent to the country's gross domestic product (GDP) in 2026, according to the 2026 Economic Impact Research issued on Thursday. By 2036, its share is projected to overtake the 2019 level, reaching 7 per cent of GDP, with a compound annual growth rate (CAGR) of 6.3 per cent during 2026-2036, well above the 5.7 per cent CAGR expected for India's overall economy, the data showed.

 

Gloria Guevara, chief executive officer of WTTC, however, flagged that India's tourism sector had not unlocked its potential, with room for improvement through visa reforms, air and land connectivity, seamless travel and a push to boost international demand. At present, India's visa-free access extends only to three countries, while the corresponding numbers for China and Thailand are 70 and 90 countries, respectively.

 

 

"The e-visa system remains mainly air- and sea-oriented. Priority should also be placed on securing seamless travel, a complete transition to a fully digital arrival process and adoption of digital solutions and integrated tourism services," she said, adding that the country could accelerate the delivery of high-speed rail projects, including the Mumbai-Ahmedabad High-Speed Rail project, to improve access to tier-2 and tier-3 cities.

 

"Funding to promote international tourism, especially in priority source markets, should also go up," she added. Travel and tourism contributed 6.9 per cent of the total economy in 2019, amounting to Rs 17.6 trillion. That share fell slightly to 6.6 per cent in 2025 even as the rupee value rose sharply to Rs 23 trillion, an annual increase of 7.3 per cent and a 30.3 per cent rise over 2019, reflecting India's overall economic expansion.

 

"Last year, despite wars, weather abnormalities and hurricanes, we had growth. There have been a lot of these despites this year as well: West Asia, the fuel crisis and insurance issues. We will always have growth," she said, highlighting the sector's resilience in the face of geopolitical disruption.

 

The data added that India's travel and tourism sector is projected to support 48.1 million jobs in 2026, accounting for 11.1 per cent of total employment. By 2036, the sector is forecast to employ 63.5 million people in India, taking its share to 13 per cent and adding 15.4 million new jobs over the coming decade. The sector supported 39.9 million jobs in 2019, accounting for 9.9 per cent of employment, rising to 46.2 million in 2025, or 10.8 per cent of India's job market.

 

The WTTC's 2026 Economic Impact Research (EIR) added that, based on inbound arrivals in 2025, the United States was the largest source market at 11 per cent, followed by Bangladesh (10 per cent), the United Kingdom (7 per cent), Japan (4 per cent) and Malaysia (4 per cent), with the rest of the world accounting for 64 per cent.

 

"I see fragmentation in India's travel sector. I think they should join forces and come together," said the top executive. "It has been done in other economies; it can be done here."

 

International visitor spending in India in 2026 is projected to be Rs 3.3 trillion, 15.3 per cent higher than the 2025 level of Rs 2.9 trillion. While the 2025 level was 8 per cent lower than in 2024, it was 0.3 per cent higher than in 2019.

 

Domestic visitor spending will be higher in 2026 at Rs 19 trillion, up 7.5 per cent from 2025, although the growth is expected to be slower than the 10.3 per cent recorded in 2025 over 2024. In 2025, domestic spending stood at Rs 17.7 trillion.

 

International visitor spending is projected to reach Rs 4.5 trillion by 2036, representing a CAGR of 3.2 per cent, while domestic spending is expected to rise to Rs 36.5 trillion, reflecting a CAGR of 6.8 per cent.