Khaleej Times - India outbound trips forecast to hit 29m by 2025

Arun Leslie John, Special to Khaleej Times November 10, 2021

Indian tourists will be some of the most desirable travellers, given India’s growing economy, young population and rising middle class, according to a latest global research. .GlobalData — data and analytics company — notes that the country is projected to reach record levels of 29 million outbound trips by 2025, indicating a buoyant outlook considering the strains of Covid-19.

Craig Bradley, associate travel and tourism analyst at GlobalData, said: “Before the pandemic, India was one of the most important and sought-after tourism source markets globally, and was a key target for major players such as VisitBritain and Tourism Australia. While the Covid-19 crisis put considerable strain on the country’s economy and tourism industry, Indian travellers are expected to be ready to travel once more.”

According to a Q3 2021 Global Consumer survey by GlobalData, 56 per cent of Indians said that ‘affordability’ and ‘accessibility’ were key considerations when purchasing a holiday. This underlines that simple, cost-effective travel solutions are the way forward. Bradley adds: “India’s increased investment in budget airlines, as well as improving airport infrastructure, means better connections from regional and major airports. Therefore, international travel will be more straightforward and cheaper for Indian travellers. This will be essential to India’s success in the post-pandemic era.

“Already, India’s budget airline industry has increased drastically over the past decade alongside its economy. In 2016, it surpassed full-service carriers by the number of passenger seats sold, and accounts for 51 per cent of all of India’s passenger traffic as of 2021,” said Bradley.

India’s economy will continue to build on its success, after an initial lull in 2020. Current projections show the national GDP of India will reach $4 trillion, 50 per cent higher than 2021 levels, according to GlobalData’s Macroeconomic database.

“While the Covid-19 crisis put considerable strain on the country’s economy and tourism industry, Indian travellers are expected to be ready to travel once more. Indian tourists have remained a top choice for destination marketers, aimed to capitalise on the country’s growing population, comprising Gen Z and millennials who are inclined to travel. Furthermore, India’s improving infrastructure and developing low-cost airline market means outbound travel is both affordable and accessible from Tier 2 cities too,” said Arun Leslie John, chief market analyst, Century Financial.

The growth within India’s economy will directly contribute to a boost in the middle-class population, resulting in increased wealth and disposable income for years to come.

Bradley said: “Tourism development typically thrives in developing economies, and India’s future looks bright — provided it can avoid further Covid-19 outbreaks and subsequent lockdowns. It poses an excellent opportunity for destination marketers, which can capitalise on the country’s growing population, comprising Gen Z and millennials (approximately 51 per cent). These generations are inclined to travel. Furthermore, India’s improving infrastructure and developing low-cost airline market means outbound travel is both affordable and accessible.”

The majority of Indians are coming to Dubai nowadays especially for the Expo 2020 Dubai, informed Hemali Shah, managing director of City One Tourism and Travel.

“There is a huge rise in the bookings for family vacations and bizcation. Every hotel and tourist spot you will find them around. There is a massive crowd all over as early as this year. There are lots of opportunities in the business as we are offering a wide range of destinations and tailor-made travel which we offer to our clients for their exceptional and memorable experiences,” said Shah.

“Given that India is second of the most populated countries in the world, it is not surprising that a lot of outbound travellers will be there as they are eager and yearning for trips outside of their comfort zone. Since it was closed for a long time, now is their chance to travel globally as they have saved their money for travel from 2020 and now many borders opened up.”