Spending on outbound tourism to rise 11% annually to reach USD 55 bn in 2034: Report

Spending on outbound tourism is expected to grow from USD 18.82 billion in 2024 to USD 55.39 billion in 2034, a report said.

The 'Navigating Horizons' report jointly prepared by Nangia NXT and Ficci said packaged tours still dominate the outbound market in India, with a share of 39.20 per cent in 2024, as there is a preference for choosing pre-planned tour packages from travel service providers due to greater convenience and customisation.

The report said that availability of Indian or vegetarian food options as well as awareness about niche tourism will help increase the number and frequency of Indians engaging in foreign travel in the coming years. The market has already seen robust growth with rising disposable incomes, an expanding middle class, systemic ease and flexibility in obtaining visas, and a desire for international experiences.

"Countries like Egypt, Azerbaijan and Georgia, among others, known for their rich history, cultural heritage, natural beauty and unique topographies, are attracting more and more Indians to venture abroad. Such destinations are often more affordable as well," the report said.

With a rising urban and young population, the inclination towards exploring international destinations is expected to continue to grow. Demographic trends thus are likely to support growth in outbound tourism in the near future, it added.

"India's outbound tourism market is showing stellar growth and is projected to reach USD 18.82 billion in 2024. There have also been measurable benefits to allied industries such as aviation and hospitality. The growth in the industry is bolstered by increased consumer spending, visa reforms, social media visibility and commercial marketing efforts," said Suraj Nangia, Head (Government and Public Sector Advisory), Nangia NXT.

With the Indian outbound market expected to grow at a CAGR of 11.4 per cent and reach USD 55.39 billion by 2034, the outlook is positive with coordinated efforts by all stakeholders propelling the industry forward, Nangia added.