India Spearheads Post-Pandemic Tourism Recovery in Asia

India Spearheads Post-Pandemic Tourism Recovery in Asia

Discover how India is pioneering the resurgence of post-pandemic tourism in Asia, fueled by robust recovery factors and evolving travel preferences. 

India has emerged as a cornerstone in the resurgence of Asia’s tourism sector, post the disarray unleashed by the COVID-19 pandemic, according to a fresh revelation in a recent report. 

Undergoing an impressive revival, India’s tourism expenditure in 2022 soared, reaching 78 percent of what was recorded in 2019, marking a stark contrast to the broader Asian landscape that limped at a 52 percent recovery rate. 

This insight is part of a comprehensive report, ‘How India Travels,’ a collaborative venture between and McKinsey & Company.

Surge in Popularity: Tier-II and Tier-III Cities

A fascinating shift noted was the upswing in the popularity of Tier-II and Tier-III cities such as VaranasiCoimbatore, and Kochi, now shining as premier tourist hotspots. 

The traction towards these cities results from the destabilizing fluctuations that pockmarked the tourism industry due to COVID-19.

A shadow of prolonged travel restrictions loomed across various parts of Asia, especially countries like ChinaJapan, and Southeast Asia, keeping the tourism sector in a state of subdued activity through the larger part of 2022.

Expenditure Projections: A Boost in Ranking

Before being swept over by the pandemic currents, Indian travelers had unleashed a massive USD 150 billion on travel expenditures, positioning India on the global map as the sixth largest spender. 

The report unfolds promising projections, estimating that by the year 2030, expenditure streams from Indian travelers could potentially swell to a whopping $410 billion. 

This formidable increase will catapult India’s global standing to the fourth largest spender.

Factors Fueling the Recovery

Central to this robust recovery trajectory are many factors, including a buoyant economy, an ascending middle class, and a demographic rich in youth, marked by an avid interest in travel. 

This combination of factors is cascading into a potent revenue-generating force bolstering the tourism sector.

The Enthusiasm of Indian Travelers

Santosh Kumar, the Country Manager for IndiaSri LankaMaldives, and Indonesia at, highlighted the vibrant enthusiasm among Indian travelers. 

A burgeoning confidence and eagerness are noticeable among Indians, who are set to explore a spectrum of destinations, ranging from proximate locations to far-off exotic locales.

A Paradigm Shift: Alternative Accommodations

An intriguing trend spotlighted by the report is the escalating demand steering towards alternative accommodation avenues such as hostels, campsites, vacation rentals, and chalets. 

These non-traditional accommodations are surging, with their average daily rates (ADR) racing ahead of conventional hotels and managed chains. 

This trend reflects an evolving travel preference among Indian globetrotters, signaling a transformation in the tourism accommodation landscape.

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