India’s Foreign Tourist Arrivals Decline Amid Bangladesh Crisis, Post-Covid Drop In Chinese Travelers, And Rising Regional Competition

India’s foreign tourist arrivals (FTAs) continue to grapple with a sluggish post-pandemic recovery in 2024, compounded by the political crisis in Bangladesh. Despite the number of outbound Indian travellers surpassing pre-COVID levels, FTAs for January-August 2024 remain 10.5 per cent lower than in the corresponding period of 2019, as per Ministry of Tourism data.

Bangladesh, India’s largest source of inbound tourists, has seen a sharp decline in arrivals due to political unrest. “In July and August, during the peak of Dhaka’s political crisis, FTAs from Bangladesh fell significantly—20.3 per cent year-on-year in July to 1.57 lakh and 38.1 per cent year-on-year in August to 0.99 lakh,” as per data presented in Parliament. For January-August 2024, FTAs from Bangladesh dropped 9.1 per cent year-on-year to 12.86 lakh.

Bangladeshi tourists, particularly those visiting for medical treatment, shopping, and leisure, have traditionally formed the backbone of India’s inbound tourism. In 2023, Bangladesh accounted for 22.3 per cent of India’s FTAs; however, this share fell to 20.8 per cent in January-August 2024 and further to 15.6 per cent in August.

Adding to India’s woes is the subdued footfall from China, exacerbated by the lack of direct flights between the two countries since the onset of the COVID-19 pandemic in 2020. This absence has significantly dented Chinese tourist numbers, once a key contributor to India’s FTA growth.

India also faces stiff competition from regional players offering attractive travel packages and streamlined visa regimes. “Destinations like Qatar, Dubai, Vietnam, and Sri Lanka are surpassing pre-COVID tourism levels, with FTAs rising by 47 per cent, 11 per cent, 4 per cent, and 0.2 per cent, respectively, in the first half of 2024,” according to a CRISIL Market Intelligence and Analytics report. These nations appeal to cost-conscious travellers with better value-for-money propositions and favourable visa policies.

While outbound travel by Indians grew by 12 per cent in January-August 2024, crossing 2 crore departures, the divergence highlights the challenges for India’s tourism sector. To address this, experts recommend policy measures such as more direct flights to key markets, competitive travel packages, and streamlined visa policies.

Also Read: Bangladesh Owes Rs 200 Crore in Electricity Dues To Tripura: CM Saha; After Adani Power, State Can Review Supply