Domestic Travel Stabilizes Indian Tourism, Foreign Arrivals Drop
NEW DELHI- India’s tourism and hospitality sectors remain resilient on the back of strong domestic demand, even as the ongoing Middle East conflict disrupts international travel, industry body PHD Chamber of Commerce and Industry said in a report.
The report said the restaurant and food services segment is witnessing mixed trends. While domestic demand and food delivery, which contribute up to 30 per cent of revenues for organized players, continue to provide stability, input cost inflation of 10-15 per cent and softer international footfall are weighing on margins.
It highlighted that domestic tourism continues to be the primary growth engine, supported by emerging travel trends such as “revenge travel”, staycations, bizcations and experiential dining.
Inbound tourism has been affected, with foreign tourist arrivals declining by 15-20 per cent, particularly in the leisure segment, as travelers adopt a cautious approach amid geopolitical uncertainty.
According to the industry body, India’s tourism, aviation and hospitality sectors contribute 8 per cent to GDP and support more than 40 million jobs, but are again facing external pressures due to geopolitical tensions.
At the same time, outbound travel patterns are shifting, with Indian travelers increasingly preferring short-haul destinations such as Thailand, Singapore and Vietnam, while long-haul and transit-dependent routes have moderated.
The report said the strong recovery seen in 2025 has helped cushion the impact. Branded hotel inventory expanded to nearly 200,000 rooms, while domestic aviation traffic crossed 5 lakh passengers per day, reflecting sustained demand.
It also flagged that the disruptions have increased flying time by two to four hours on key routes.
The disruption of key Middle East air corridors, among the busiest global transit routes, has reduced connectivity efficiency and pushed up airfares.
The report further emphasized the need to strengthen digital travel facilitation, streamline visa processes, and expand destination marketing in alternative global markets. (IANS)
