Inbound Tourism: Five markets drive growth, new regions signal opportunity

Mumbai: India’s inbound tourism sector posted strong gains in 2024–25, with five countries -- the United States, United Kingdom, Bangladesh, Australia and Canada -- accounting for nearly half of all foreign arrivals, according to the India Tourism Data Compendium 2025. The data underscores the resilience of traditional markets while signalling a shift towards greater geographic diversity in India’s visitor profile.

The United States led the pack with close to 1.8 million visitors, drawn to heritage circuits in Rajasthan and Uttar Pradesh, as well as wellness retreats in Kerala and Uttarakhand. The United Kingdom followed with over 1.5 million arrivals, reflecting enduring cultural and historical ties. Bangladesh contributed a significant share, driven by cross-border travel for medical treatment, education and religious tourism. Australia and Canada rounded out the top five, with travellers showing strong interest in adventure tourism and immersive cultural experiences.

While these markets remain dominant, emerging interest from South Korea, France and the United Arab Emirates is reshaping the landscape. Younger travellers from East Asia are increasingly seeking adventure and cultural immersion, contributing to a more diversified and resilient inbound mix.

Regional data illustrates the breadth of India’s tourism appeal. Rajasthan’s heritage cities -- Jaipur, Udaipur and Jodhpur -- continue to attract visitors from North America and Europe, with local artisans reporting increased demand for handicrafts. Kerala’s Ayurveda centres and yoga retreats are popular among European and Canadian travellers, many of whom combine wellness programmes with backwater excursions. In Himachal Pradesh and Ladakh, adventure tourism has drawn Australians seeking trekking and rafting experiences.

Industry stakeholders are pivoting towards region-specific marketing strategies. Ayurveda and yoga retreats resonate strongly in Europe, while adventure tourism appeals to Australian audiences. Medical tourism has emerged as a key draw for visitors from Bangladesh and the Middle East, with hospitals in Delhi, Chennai and Hyderabad reporting consistent inflows of foreign patients. India’s tourism strength lies in its diversity, and tailoring experiences to distinct market segments is proving more effective than a one-size-fits-all approach.

The economic impact has been substantial. Foreign exchange earnings rose to ₹2.6 lakh crore in 2024–25, marking a 15 per cent year-on-year increase. Hotels in major cities reported occupancy rates nearing pre-pandemic levels, while boutique properties and homestays in Tier II and III towns saw unprecedented demand. Local businesses -- from transport operators to craft sellers -- benefited from increased tourist spending. In Varanasi, redevelopment of the Kashi Vishwanath corridor boosted demand for hospitality services and enhanced sales of local crafts.

Growth, however, has brought challenges too. Overcrowding at marquee sites such as the Taj Mahal and Jaipur’s Amber Fort has raised concerns about visitor management. Fragile ecosystems, including Himalayan trekking routes, are under environmental stress. Without adequate infrastructure and sustainability measures, long-term gains could be at risk.

The Ministry of Tourism is addressing these concerns by investing in responsible travel initiatives and infrastructure upgrades. Plans include expanding eco-tourism projects, improving sanitation at heritage sites, and promoting community-based tourism in rural areas. The goal is to ensure that tourism growth benefits local communities while preserving cultural and natural assets.

Inbound tourism is expected to remain a key pillar of India’s travel economy. With global travel projected to expand further in 2026, India is well positioned to consolidate its gains -- provided policy support and infrastructure investment continue. The compendium concludes that inbound tourism is evolving not just in scale but in character, laying the foundation for sustained and inclusive growth.

Medical and wellness tourism surges past 1.2 million visitors in 2024-25

Mumbai: India’s reputation as a hub for affordable healthcare and traditional wellness practices has been reinforced by the arrival of more than 1.2 million foreign medical and wellness tourists in 2024–25, according to the India Tourism Data Compendium 2025. This marks a significant increase over the previous year and reflects the growing global demand for both modern medical treatment and ancient healing traditions.

Hospitals in metropolitan centres such as Delhi, Chennai and Hyderabad reported steady inflows of foreign patients seeking specialised procedures ranging from cardiac surgery to orthopaedic care. India’s combination of skilled professionals, advanced facilities and comparatively lower costs has made it a preferred destination for patients from Africa, the Middle East and South Asia. Many of these patients would otherwise struggle to afford treatment in their home countries, but India offers quality care at a fraction of the cost.

Wellness tourism has also expanded rapidly, with Ayurveda centres in Kerala and yoga retreats in Rishikesh attracting visitors from Europe and North America. Many combine wellness programmes with leisure travel, spending time in backwater destinations or Himalayan towns. Visitors often describe the experience as holistic, encompassing physical, cultural and spiritual dimensions.

Regional examples highlight the diversity of offerings. In Kerala, Ayurveda resorts have reported occupancy rates exceeding 80 per cent, with packages combining traditional therapies, diet plans and meditation sessions. In Uttarakhand, yoga schools in Rishikesh have seen strong demand from international students, many of whom enrol in month‑long certification programmes. In Maharashtra, wellness centres near Pune and Nashik are attracting domestic and foreign visitors seeking detox and stress‑management therapies.

The government has promoted Heal in India as a flagship initiative, integrating medical tourism with broader healthcare diplomacy. India’s strength lies in its ability to offer both advanced medical procedures and traditional wellness practices, positioning the country not just as a place for treatment but as a destination for holistic healing.

The economic impact of medical and wellness tourism is substantial. Foreign exchange earnings from this segment have risen steadily, while local communities benefit from increased demand for accommodation, transport and ancillary services. In Kerala, local farmers supplying organic produce to Ayurveda centres have reported higher incomes. In Uttarakhand, small businesses providing yoga equipment and clothing have thrived.

Concerns remain about quality standards, with experts emphasising that accreditation of hospitals and wellness centres is essential to ensure safety and reliability. Patients and wellness travellers make choices based on trust, and any decline in standards could undermine the sector. Accessibility is another issue: while India offers affordable care compared to many countries, costs remain high for poorer domestic patients. Analysts stress that medical tourism must not come at the expense of local healthcare needs, and a balance must be struck between serving international patients and ensuring domestic populations have access to quality care.

Looking ahead, the compendium concludes that medical and wellness tourism will remain a key driver of growth in India’s travel economy. With global demand for affordable healthcare and holistic wellness expected to rise, India is well positioned to consolidate its gains if infrastructure and policy support continue. For businesses, policymakers and communities alike, the message is clear – India’s blend of modern medicine and ancient traditions offers a unique advantage in the global tourism market.