R. Suryamurthy
India’s travel and tourism sector is not merely recovering; it’s experiencing an explosive surge, dynamically fueled by both robust domestic spending and a remarkable return of international visitors. This impressive trajectory is detailed in the latest Economic Impact Research (EIR) from the World Travel & Tourism Council (WTTC), signalling a bold new era of growth for the nation’s tourism industry, with forecasts predicting sustained expansion well into the next decade.
The sector’s foundational strength lies in its domestic demand. After a period of significant reliance on local tourism, domestic visitor spending surged to ₹15.5 trillion (22 percent above 2019 levels) in 2024. This homegrown enthusiasm continues to drive the sector’s expansion, with the WTTC anticipating domestic spending to reach ₹16.8 trillion in 2025. This underscores the critical role of India’s citizens in driving the sector’s recovery and expansion. Looking further ahead, the outlook for domestic tourism is exceptionally bright, with WTTC forecasts predicting domestic spending to hit an impressive ₹32.7 trillion by 2035.
Complementing this, international visitor spending has also seen a powerful resurgence, reaching a record ₹3.1 trillion in 2024, a significant 9 percent above pre-pandemic levels in 2019. The return of international visitors is now propelling the sector to new economic frontiers, with an estimated international spend of ₹3.2 trillion in 2025. India welcomed an impressive 20 million international visitors in 2024, surpassing 2019 figures by 2.3 million, underscoring India’s growing appeal as a global destination.
This combined growth is set to propel the sector’s overall contribution to the national economy to nearly ₹42 trillion by 2035, supporting almost 64 million jobs. The WTTC anticipates an even more robust performance in 2025, with the sector’s total economic contribution projected to exceed ₹22 trillion and employment reaching over 48 million. Beyond leisure, business travel is also contributing significantly to this boom, with combined domestic and international spending hitting ₹1.1 trillion last year, surpassing its 2019 peak by 2.6 percent.
Julia Simpson, WTTC President & CEO, highlighted the pivotal role of both domestic resilience and international resurgence. “India’s Travel & Tourism sector is experiencing unprecedented growth, with international visitor numbers now at record highs after a period of strong domestic reliance,” she stated.
To sustain this momentum and unlock the sector’s full potential, the WTTC emphasises the need for strategic investment and supportive policies. Julia Simpson underscored the importance of simplifying the e-visa process and addressing delays for key markets to facilitate easier access for tourists. The WTTC has also formalised its commitment to bolstering India’s tourism voice globally through a Memorandum of Understanding (MoU) with WTTCII, aiming to strengthen policy coherence and foster global-local tourism leadership.
While the sector already contributed almost ₹21 trillion to the Indian economy last year (20 percent ahead of 2019) and supported nearly 46.5 million jobs, the WTTC believes there’s significant room for further expansion. With a young, educated population facing rapid automation, the travel and tourism sector remains a crucial source of employment and opportunity. Strengthening infrastructure, including high-speed rail and smart mobility solutions, will be essential to push the sector’s GDP contribution towards 10-11 percent.
As India positions itself to become one of the world’s most dynamic tourism economies, leveraging its rich heritage, natural beauty, and modern innovation, the WTTC urges the government to match the sector’s resilience and ambition with clear, consistent policy support, especially by reconsidering the recent decision to reduce funding for overseas tourism promotion. This proactive approach will be key to realizing the sector’s immense future potential, particularly in fostering homegrown entrepreneurship and capitalizing on the growing demand for luxury travel experiences.
Note: All figures for 2025 and beyond are forecast projections based on constant 2024 prices.