Domestic Tourism Gains Momentum in India Following PM Modi's Travel Initiative

Indian Travelers to Focus on Domestic Destinations Amid Global Uncertainty

The weakening rupee, driven by the ongoing Iran war and global uncertainty, is making overseas holidays increasingly expensive for Indians. However, industry players expect travellers to shift their focus to domestic destinations, at least in the near term.

According to industry experts, despite the rising costs, Indians are unlikely to stop travelling altogether. Instead, they may substitute international holidays with domestic ones, which could benefit the country's domestic industry. The idea is not new, as Prime Minister Narendra Modi recently urged citizens to put off overseas travel and destination weddings for a year and go local to support domestic industry and conserve precious foreign exchange.

Domestic holidays offer several advantages, including shorter planning cycles, easier accessibility, fewer visa-related uncertainties, and a wide range of options across budgets. Experts point out that India's domestic tourism market still has massive untapped potential, with improved roads, transport connectivity, and cleaner mobility solutions steadily improving the overall travel experience.

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India's Domestic Tourism Market: Key Statistics

Industry players report a shift in traveller behaviour since March, with some opting for destinations like Vietnam, Malaysia, Japan, and Korea instead of traditional routes such as Dubai or Abu Dhabi. The shift is not just about destinations but also about affordability, as flights have become expensive and trains are capacity constrained.

Buses continue to be one of the fastest-growing categories for travel companies due to their affordability. Transport infrastructure and affordable travel connectivity will play a major role in encouraging Indians to choose local destinations over international ones.

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According to RBI data, overseas travel accounted for more than $1.3 billion in outward remittances in February under the Liberalised Remittance Scheme (LRS), up 16.56 percent from the year-ago period. Industry experts believe that moderating non-essential overseas travel could help reduce pressure on the rupee in the short term.