India's Post-Pandemic Tourist Arrival Lag: Crisil Report

India's tourist recovery post-pandemic lags behind the global trend, as detailed in a Crisil report. Factors include reduced demand from Bangladesh, suspension of direct flights from China, and competition from affordable destinations. Despite this, India's foreign exchange earnings from tourism have increased notably.

According to a recent Crisil report, India's recovery in tourist arrivals post-pandemic is trailing the global trend. In the first half of 2024, India recorded 4.78 million foreign tourist arrivals, approximately 90 percent of the numbers from the same period in pre-pandemic 2019.

The report identifies reduced demand from Bangladesh, owing to its current political scenario, and the suspension of direct flights from China as significant contributors to this trend. These countries historically accounted for 27 percent of India's tourist arrivals in 2019. Crisil also noted that destinations like Qatar, Dubai, Vietnam, and Sri Lanka are attracting tourists with more affordable options and favorable visa policies, having surpassed their pre-Covid tourist levels.

Emerging destinations such as Azerbaijan, Georgia, and Kazakhstan are aggressively campaigning for tourist expenditures, the report added. Crisil recommends simplifying India's visa process and enhancing direct flight connectivity to major tourist markets. On a positive note, India's foreign exchange earnings from tourism rose by 23 percent in the first half of 2024 compared to 2019, indicating higher spending per tourist.

This increase in earnings is attributed to a rise in five-star hotel rates, greater tourist preference for luxury experiences, and the 19.4 percent depreciation of the rupee against the dollar, making travel to India more affordable. Meanwhile, India's outbound tourism has increased by 12 percent, driven by higher disposable incomes and better airline connectivity.

(With inputs from agencies.)