India’s Domestic Tourism Boom Leaves Foreign Arrivals Behind
India’s domestic tourism market is expanding at exceptional speed, but its recovery in foreign visitors remains much weaker. Domestic tourist visits approached 4.29 billion in 2025, rising almost 46% in a year, while foreign tourist arrivals declined. The gap is particularly striking at a time when global international tourism has returned to growth and India has sharply reduced direct spending on overseas destination promotion. Bloomberg highlighted the divergence on August 31.
India Recorded Nearly 4.29 Billion Domestic Tourist Visits
India registered approximately 4.287 billion domestic tourist visits in 2025, an increase of 45.6% from the previous year. The figure measures trips and visits rather than unique travellers, so the same person can be counted several times.
Inbound tourism moved in the opposite direction. Foreign Tourist Arrivals, or FTAs, fell 8.1% to 9.15 million. International Tourist Arrivals, a broader Indian measure that also includes Non-Resident Indians, declined 1.7% to 20.22 million. NRI arrivals themselves rose 4.3% to 11.07 million. Tourism foreign-exchange earnings declined by about 9.5% to 2.7 trillion rupees. Meanwhile, global international tourist arrivals reached around 1.534 billion, up almost 5%. The figures are published on India’s official Ministry of Tourism data portal.
The distinction between the two Indian arrival measures is important. The 20.22 million figure does not mean that more than 20 million foreign nationals visited India. More than half of those arrivals were Indians permanently resident overseas.
Bangladesh Explains Much of the 2025 Decline
The headline fall in foreign tourism looks significantly different when arrivals are broken down by source market.
The Ministry of Tourism’s preliminary annual snapshot initially put foreign tourist arrivals at 9.02 million in 2025, compared with 9.95 million the previous year. The total was subsequently revised to 9.15 million, but the preliminary dataset provides an important breakdown for Bangladesh.
India received around 1.75 million arrivals from Bangladesh in 2024. That number fell to roughly 466,000 in 2025, a decline of 73.4%. Excluding Bangladesh, combined foreign tourist arrivals from all other markets actually increased by about 4.3%, from 8.20 million to 8.55 million.
The national decline should therefore not be interpreted as an equally broad deterioration in demand across every foreign market. A substantial part of the contraction was concentrated in one major neighbouring country.
It does not, however, eliminate the longer-term weakness: India had still failed to regain its pre-pandemic foreign-tourist peak even before the 2025 decline.
Foreign Arrivals Remain Below the 2019 Peak
India received 10.93 million foreign tourists in 2019. Arrivals recovered to 6.44 million in 2022, 9.52 million in 2023 and 9.95 million in 2024. Even the 2024 total remained almost 9% below the pre-pandemic benchmark. With arrivals at 9.15 million in 2025, the shortfall from 2019 is now roughly 16%.
The broader international-arrivals measure recovered much earlier because of India’s large overseas diaspora. It reached 20.57 million in 2024, compared with 17.91 million in 2019.
The United States was India’s largest foreign source market in 2024 with 1.80 million arrivals. Bangladesh contributed 1.75 million, the UK 1.02 million, Australia 518,000 and Canada about 476,000, official government tourism statistics show.
That creates two very different recovery stories. India is receiving more international arrivals in the broader statistical definition than before the pandemic, but fewer actual foreign nationals.
India Captures Less Than 1.5% of Global International Arrivals
The gap is notable given the scale of India’s tourism resources. The country has 44 UNESCO World Heritage Sites, more than 100 national parks and established religious, wellness, medical and nature tourism sectors.
A June report by government policy body NITI Aayog estimates that India accounts for less than 1.5% of global international tourist arrivals. The study also cautions that the country’s headline international-arrival number is boosted substantially by members of the Indian diaspora and argues that Foreign Tourist Arrivals provide a better indication of non-diaspora demand.
The report identifies visa policy as one constraint. India scores 38.14 on the UN Tourism Visa Openness Index, below a global average of around 40 and an Asia-Pacific average of 46. Malaysia scores 80.48, Sri Lanka 67.07 and Thailand 58.66. Most travellers to India still require approval before departure even when an electronic visa is available.
Ease of entry matters particularly for short and discretionary travel. A visitor choosing between several Asian destinations is considering not only attractions and accommodation prices, but also documentation, flight connections and the predictability of the entry process.
Domestic Travellers Generate 86% of Tourism Spending
Weak inbound growth has not stopped India’s wider tourism economy from expanding because its domestic market is exceptionally large.
The World Travel & Tourism Council estimates that travel and tourism generated $263.6 billion for India’s economy in 2025, up 7.3%, while supporting around 46.2 million jobs.
Domestic visitor spending reached $203 billion and increased by more than 10%. Indian travellers accounted for roughly 86% of total tourism spending, leaving international visitors with around 14%.
For 2026, the organisation expects the sector’s economic contribution to increase another 8.5% to $286.1 billion, while employment rises to 48.1 million. By 2036, India’s travel and tourism economy could approach $527 billion.
This structure gives Indian hotels, airlines, rail operators, restaurants and attractions a powerful buffer against fluctuations in overseas demand.
At the same time, domestic spending can disguise weakness in inbound tourism. Foreign travellers remain important sources of foreign-exchange earnings and represent a distinct market for premium hotels, tour operators and destinations dependent on long-haul visitors.
Global Hotel Groups Are Betting on Indian Travellers
The strength of domestic demand is already reshaping hotel investment.
Hyatt Chief Executive Mark Hoplamazian said in February that the company could increase its India footprint about fivefold over the next five years. Hyatt operated 55 hotels in the country at the time, with management linking its expansion plans to surging domestic travel and rising consumer spending.
India therefore presents an unusual investment case. International hotel groups do not need to wait for foreign tourist arrivals to reach record levels before expanding because the domestic market alone can support substantial new capacity.
For India’s ambition to become a larger global tourism destination, however, adding hotel rooms solves only part of the problem. International competitiveness also depends on attracting travellers who currently choose other Asian destinations.
India Has Cut Overseas Tourism Promotion
Government spending offers another explanation for the imbalance between domestic and foreign tourism.
India spent 510.3 million rupees on international tourism promotion in fiscal 2023/24. Expenditure fell to 319.9 million rupees in 2024/25.
The spending covered international travel exhibitions and fairs, overseas roadshows, familiarisation trips for foreign tour operators, journalists and digital creators, food festivals and campaigns organised with Indian diplomatic missions abroad. The government disclosed the figures in parliament in January 2026.
The shift became substantially more pronounced in the 2026/27 budget.
India’s Direct Overseas Marketing Budget Has Effectively Disappeared
A parliamentary committee reviewing the Tourism Ministry’s 2026/27 budget found that no money had effectively been provided for overseas marketing and promotional activity.
The 35 million rupees remaining under Overseas Promotion and Publicity is allocated entirely to mandatory contributions to UN Tourism. The committee recommended establishing an India Tourism Promotion Board and protecting promotional spending through a committed multi-year budget.
This does not mean India has stopped promoting itself internationally. The Tourism Ministry continues participating in trade events and is increasingly using partnerships with airlines and digital platforms.
The model, however, is changing at the same time that the country is trying to close its foreign-arrival gap with 2019.
Air India Is Joining the Tourism Campaign
On July 27, the Tourism Ministry signed an agreement with Air India to jointly promote India under the Incredible India brand.
The partnership is designed to use the airline’s marketing and digital channels, destination content and coordinated campaigns to increase the visibility of Indian destinations among international travellers.
The arrangement gives the government direct access to an audience already considering travel to or through India, while the airline has an obvious commercial interest in stronger inbound demand.
IndiGo Is Building Its Own Incredible India Campaign
Three days later, the government signed a separate agreement with IndiGo.
The Incredible India by IndiGo initiative is intended to showcase cultural heritage, nature, spiritual tourism, wellness, adventure and wildlife to domestic and overseas audiences. The partnership is non-exclusive and non-financial.
Such agreements allow the Tourism Ministry to increase international visibility without rebuilding its previous direct advertising budget. Their effectiveness will ultimately depend on whether exposure translates into additional bookings and arrivals.
Netflix Is Being Used to Promote Indian Destinations
A further promotional channel was added in August when the Culture and Tourism ministries expanded their cooperation with Netflix.
An As Seen on Netflix section on the Incredible India portal links films and television productions with real destinations, cultural traditions and experiences in India. The initiative is designed to turn international interest in screen content into interest in visiting the locations associated with it.
Screen tourism is already used by destinations around the world, but the project carries additional significance for India as the government shifts away from large centrally funded overseas advertising campaigns.
India Is Expanding E-Visa Entry Points
The government is also making electronic visas easier to use.
On August 10, India authorised another 11 international entry points for foreign e-visa holders, including nine land crossings and two airports. The expansion brought the total to 88 entry points: 37 airports, 38 seaports and 13 land ports.
The Home Affairs Ministry also said approximately 95% of electronic visa applications are processed in less than 72 hours.
Electronic visas remove part of the administrative friction involved in visiting India, but digitisation alone does not determine destination competitiveness. Air fares and connectivity, transport, hotel supply, public infrastructure and the predictability of the overall visitor experience also influence travel decisions.
Domestic Growth Can Conceal India’s Inbound Tourism Gap
India occupies an unusual position among major tourism markets. It can continue generating strong tourism growth, hotel investment and record numbers of trips without rapidly increasing foreign arrivals.
A population of more than 1.4 billion, rising spending among middle- and higher-income households, expanding road and aviation networks, religious travel and demand for short domestic breaks give India a tourism market on a scale few competitors can match.
That means very different indicators can move in opposite directions. Almost 4.29 billion domestic visits are compatible with foreign tourist arrivals remaining substantially below their 2019 record.
As International Investment experts report, the decline in foreign arrivals during 2025 should not be read as evidence of a broad collapse in international interest: the fall in visitors from Bangladesh explains a substantial part of the headline contraction, while preliminary data excluding that market showed growth of roughly 4.3%. The structural weakness is nevertheless real. Foreign tourist arrivals remain about 16% below 2019, India captures a relatively small share of global inbound tourism compared with the scale of its economy and tourism resources, and direct funding for overseas marketing has been sharply reduced. Domestic travellers can keep hotels and transport companies growing, but they cannot replace foreign-exchange earnings and international destination visibility. The real test of India’s new strategy will therefore be whether it can produce sustained growth in foreign visitors beyond fluctuations in individual neighbouring markets.
FAQ: India Tourism
How many foreign tourists visited India in 2025?
India’s latest official data show approximately 9.15 million Foreign Tourist Arrivals in 2025, down about 8.1% from 2024.
Why is a figure of 9.02 million also reported?
The 9.02 million figure came from preliminary full-year statistics. India’s official tourism data portal subsequently updated the total to 9.15 million.
Why are there 4.29 billion domestic tourist visits in a country of around 1.4 billion people?
The statistic measures visits, not unique people. A single traveller can therefore be counted multiple times after taking several trips during the year.
Has India’s foreign tourism fully recovered from the pandemic?
No. India received 10.93 million foreign tourists in 2019 compared with about 9.15 million in 2025, leaving arrivals roughly 16% below their pre-pandemic peak.
Why did foreign tourist arrivals fall in 2025?
One major factor was the sharp decline in arrivals from Bangladesh. Preliminary statistics showed that the Bangladesh market contracted by around 73%, while arrivals from all other foreign markets combined increased by approximately 4.3%.
What is the difference between FTAs and international tourist arrivals in India?
Foreign Tourist Arrivals count foreign nationals entering India. India’s broader International Tourist Arrivals measure also includes Non-Resident Indians visiting the country.
How important are domestic travellers to India’s tourism sector?
Domestic travellers generated about 86% of tourism spending in India in 2025, making them by far the largest source of demand.
How is India trying to attract more foreign travellers?
The government is expanding e-visa entry infrastructure and increasingly using partnerships with airlines and digital entertainment platforms to promote Indian destinations internationally.