India's inbound tourism remains below potential compared to global peers despite its diverse cultural and tourism offerings, a report by Ernst and Young (EY) India in collaboration with industry body FICCI has stated.
The report, Reimagining Inbound Tourism in India: Trends, Technology and Transformational Opportunities", was released during the inaugural ceremony of Great Indian Travel Bazaar on Sunday evening. It outlined a roadmap to boost inbound tourism and position the country as an experience-driven destination under the "Incredible India 4.0" framework.
It highlights that despite its diverse cultural and tourism offerings, India's inbound tourism remains below potential compared to global peers.
It said domestic tourism continues to drive growth, accounting for a major share of overall spending, while international visitor inflows and expenditure remain relatively modest.
The report identified key challenges affecting India's competitiveness, including fragmented branding across states, lack of experience-based tourism packages, concerns over price competitiveness, limited global marketing outreach and issues related to connectivity and visa processes.
It noted a global shift towards experience-led travel, with tourists increasingly seeking personalised and immersive experiences such as culture, wellness, cuisine, spirituality and adventure.
"India should reposition itself from being seen as a collection of destinations to a unified destination offering diverse experiences," the report suggested.
It proposed a strategy focusing on unified branding, development of experience-led products, adoption of digital and technology-driven systems, improved infrastructure and better service standards.
The report also highlighted the need to focus on high-value segments such as premium travellers, MICE tourism, independent travellers and women and solo travellers to drive growth in inbound tourism.
According to the report, the tourism sector contributes around Rs 21 trillion to India's GDP and supports over 46 million jobs, making it a key driver of economic growth and employment.
Reacting to the report, Rajasthan Deputy Chief Minister and Tourism Minister Diya Kumari said that the state is committed to leading India's transition towards an experience-driven tourism ecosystem.
"The vision of the report presents a timely and strategic roadmap to elevate our global positioning, enhance visitor experiences, and unlock the immense potential of inbound tourism as a key driver of sustainable economic growth," she said.
Suman Billa, Additional Secretary and Director General, Ministry of Tourism, Government of India, said that India's next phase of tourism growth will depend on how effectively state-level offerings are integrated.