Travelling abroad

India needs a vibrant tourism sector

In a move to support tourism, countries such as Sri Lanka, Thailand, and Malaysia recently waived visa requirements for Indian travellers. Vietnam is also reported to be contemplating a similar policy. Thailand is set to introduce a 10-year investor visa for Indian citizens in its eastern economic corridor. Such policy decisions by several countries indicate that they value Indian tourists contributing towards the post-pandemic economic recovery. Making travel visa-free will reduce hassles and ultimately increase the footfall of tourists. Sluggish growth in the number of Chinese tourists has led many Southeast Asian nations to increasingly woo Indian tourists. In the case of Sri Lanka, the policy is more of a necessity. The purpose is to relieve the debt-ridden island nation’s economy. Others like Australia and Russia have also significantly simplified their visa processes and introduced e-visa services to attract more and more Indian tourists.

Supported by the growing economy, Indians are displaying a greater propensity for international travel, leading to a large number of travellers visiting foreign destinations. Recent projections by an international consultancy suggest that India will become the fourth-largest global travel spender by 2030. The foreign travel frenzy seen in Indians can be attributed to several factors. “Revenge travel” has been the most prominent cause since international borders opened up after the pandemic. The demographic profile of India is also a major reason. The young population is more eager to hit the road and skies for foreign trips. The increasing size of India’s consumer market in some segments suggests that a significant number of households possess the ability to spend more for recreation and leisure. Spending on travel and tourism was around $150 million in 2019, but is predicted to hit $410 billion by 2030. Indians spent about $21 billion on their personal travels abroad during 2022-23, up 90 per cent over 2021-22. Longer waiting times for the European Union’s Schengen and the US visas, and availability of cheaper commercial flights have made Southeast Asia a viable travel destination for Indians.

Meanwhile, the Government of India is rightly focusing on increasing the country’s domestic tourism potential. The Union Budget 2023-24 allocated Rs 2,400 crore for tourism, and that is an 18.24 per cent increase from the previous year. In his latest Mann Ki Baat episode, Prime Minister Narendra Modi urged citizens to avoid weddings at foreign destinations. The government also recently launched a campaign to show India as a premier wedding destination. Tourism is a labour-intensive industry and has the potential to create a large number of jobs. Thus, a significant increase in foreign travel by Indians can be seen as an opportunity lost. For developing a vibrant tourism sector in India, a whole-of-government approach would be required. The Union government, states, and local bodies will have to work together in developing tourist destinations. The government will need to invest in infrastructure and develop amenities to attract both domestic and international tourists. In the context of attracting foreign travellers, liberalising visa policy will increase short-term travel. However, while doing so, India also needs to be cautious. It requires an administrative apparatus capable of issuing a large number of visas in a short span of time. It may also have to tackle cases pertaining to overstaying, trafficking, irregular migration, and asylum applications from visa-free countries.