12 percent increase in tourism from India, 23 percent increase in foreign exchange earnings

By Sandy Verma On Sep 27, 2024

Mumbai:�Indian tourists are fast emerging as an important growth engine for global tourism, with arrivals growing by 12 per cent in the first half of this year compared to the same period in 2019 before the pandemic, according to a report released on Wednesday. The picture is even brighter when it comes to foreign exchange earnings (FEE), which has grown by 23 percent in the first half of 2024 compared to the same period in 2019, according to CRISIL Market Intelligence and Analytics. In the first half of calendar 2024, foreign tourist arrivals (FTAs) in the country stood at 4.78 million, nearly 90 percent of the first half of calendar 2019. The increase in foreign exchange earnings suggests that tourists are spending more during their trips, which can be linked to a number of factors, including a 20 percent increase in five-star hotel rates between 2019 and 2024, increased demand for luxury experiences, This includes the growing preference for tourists and higher disposable income with travelers indulging in premium services such as fine dining, high-end accommodation and exclusive cultural experiences. Advertisement

According to the report, this shift in priority from quantity to quality in travel spending is also reflected in the fee per FTA, which increased from Rs 1.5 lakh in 2019 to Rs 2 lakh in the first half of 2024, a jump of almost one-third. Is. Pushan Sharma, director-research at CRISIL Market Intelligence & Analytics, said, “The K-shaped economic recovery seen after the crisis subsided is visible in tourism as well. Better airline connectivity and streamlined visa processes have made foreign destinations more attractive.” Made accessible.”

Changing travel preferences are also impacting outbound travel as demand for unique experiences such as wellness retreats and adventure trips increases. According to the report, another factor aiding growth is the rise of cost-effective international destinations. It said India needs a two-pronged action plan to increase the contribution of tourism to GDP – first, to establish itself as a top global tourism destination and second, to attract its potential outbound travelers to domestic destinations. To attract to give priority.