Indian outbound tourism spending to reach $55 billion by 2034
Indian travelers are anticipated to spend a whopping $55 billion (₹457,000 crore approx.) on outbound tourism by the year 2034, as per a report titled "Navigating Horizons." This report, jointly prepared by Nangia NXT and FICCI, forecasts an annual growth rate of 11% in spending on outbound tourism. The surge is attributed to an increasing urban and young population with a keen interest in exploring international destinations.
What is outbound tourism?
Outbound tourism refers to traveling from one's home country to another country for leisure, business, or other purposes, typically for not more than one consecutive year. This sector is a significant component of the tourism industry and impacts the global economy. Common motivations for outbound tourism include exploring new destinations and cultures, attending business meetings or conferences, pursuing education or research, seeking medical treatments or wellness services, and visiting friends and family abroad.
Egypt, Azerbaijan, and Georgia gain popularity among Indian tourists
Countries like Egypt, Azerbaijan, and Georgia are gaining traction among Indian tourists due to their rich history, cultural heritage, and natural beauty. The affordability of these destinations is also playing a significant role in their growing popularity. These countries offer a unique blend of experiences that cater to the evolving preferences of the Indian outbound tourist market.
Packaged tours dominate Indian outbound travel market
The Navigating Horizons's report reveals that packaged tours continue to dominate the Indian outbound travel market, with 40% of travelers preferring pre-planned tours in 2024. Factors such as the availability of Indian and vegetarian food options, awareness about niche tourism, rising disposable incomes, an expanding middle class, ease and flexibility in obtaining visas, and a desire for international experiences have contributed to this robust market growth.
Outbound tourism boosts India's GDP and international ties
Suraj Nangia, Head of Government and Public Sector Advisory at Nangia NXT, highlighted that India's outbound tourism market is experiencing remarkable growth, with projections estimating it will reach $18.82 billion (₹156,266 crore approx.) by 2024. He emphasized that this growth not only benefits foreign economies but also significantly boosts India's GDP and strengthens international economic ties. Factors such as increased consumer spending, visa reforms, better connectivity, social media visibility, and commercial marketing efforts are key drivers of this growth.
Rise of middle-class families fuels outbound tourism surge
Ahetesham Khan, Executive Director of Sports, Media and Entertainment and Tourism Advisory at Nangia NXT, echoed Nangia's sentiments. He stated that the rise of middle-class families with higher disposable incomes and a growing interest in international adventures are fuelling this surge in outbound tourism. This trend reflects the changing socio-economic dynamics within India and their impact on travel preferences and behaviors.
