Border Tensions Impact
In 2025, India experienced a notable decline of over 9% in its foreign tourist arrivals, a trend largely exacerbated by prevailing tensions between India and
Bangladesh. This strained relationship led to a reduction in visa issuances by both nations, directly affecting travel flows. Bangladesh, which had previously been the second-largest source of tourists for India, plummeted to the fifth position. Official figures indicated a dramatic 73% decrease in tourist arrivals from Bangladesh, with numbers falling to approximately 4.7 lakh visitors. This reduction alone accounted for more than the entire 12.8 lakh drop observed in overall foreign tourist arrivals for the year, underscoring the significant impact of bilateral relations on tourism statistics. Industry insiders often debated the inclusion of Bangladeshi arrivals in foreign tourist numbers, as many visitors from that nation entered India for purposes other than conventional tourism, such as medical treatments or employment, thus not contributing to traditional hospitality sectors like hotels or tourist attractions.
Indian Travelers Abroad
Concurrently, 2025 witnessed a robust surge in the number of Indians traveling internationally, reaching a record 3.3 crore, marking a 6.6% increase from the previous year. While certain popular destinations like Saudi Arabia and the United States saw a slight dip in Indian visitors, the overall outbound travel trend remained strong. Notably, travel to Canada experienced a significant decrease, falling by nearly 16% to 8 lakh individuals. This outward migration of Indian travelers is partly attributed to evolving perceptions of value. Many frequent Indian travelers report finding comparable or even better hotel accommodations in destinations such as the UAE, CIS countries, Sri Lanka, Thailand, Vietnam, and Malaysia for prices ranging from Rs 5,000 to Rs 8,000. These rates are often considerably lower than those found in popular Indian tourist spots like Goa or Kerala, especially during off-peak seasons, and can escalate dramatically during peak holiday periods. This economic comparison is prompting a growing segment of the Indian middle class to seek more budget-friendly travel experiences abroad rather than domestically.
Hotelier Perspective
From the perspective of the Indian hospitality industry, the decrease in foreign tourist numbers is not viewed with immediate concern, particularly among major players. Hoteliers point to a strong and consistent demand from both domestic travelers and the burgeoning business travel segment. They argue that current occupancy rates, especially for luxury stays, remain high, with demand often exceeding supply. This imbalance, they contend, ensures healthy revenue yields for larger establishments and provides little incentive to actively chase foreign tourists who may not always align with premium offerings. Indian airlines are also capitalizing on this outbound travel boom by expanding their international routes, aiming to capture a larger share of the growing Indian diaspora and international leisure market. The focus remains on catering to existing demand, with the assumption that foreign tourist numbers will naturally recover when conditions are more favorable and competitive pricing can be offered.
