India Travel and Tourism
Visitor Statistics from India:
The number of Indians visiting the United States increased by 190 percent from 2021 to 2022, according to data from the U.S. Department of Commerce’s National Travel & Tourism Office (NTTO). According to NTTO statistics, a total of 1,256,915 Indians traveled to the United States, making India the 6th largest market for arrivals. The total value of U.S. tourism exports to India stood at $13.3 billion in 2022.
With the number of visitations to the United States increasing year-on-year, industry sources forecast that India will surpass its pre-Covid visitation levels to reach 1,556,000 travelers by 2024.
Current Trends in Travel:
India has witnessed a significant rise in outbound tourism to various international destinations, including the United States. With its rapidly growing younger and more educated population, combined with a burgeoning middle class and increasing amounts of disposable income, India is the second fastest growing outbound travel market in the world, second only to China.
One of the key features of India’s population is its young demographic composition, which will continue to drive outbound travel in the coming years. The 15-54 age group (47 percent of the total population) is the fastest growing age segment and is expected to represent 60 percent and 56 percent of the country’s total population by the year 2025 and 2050, respectively.
Student Travelers:
According to the Open Doors Report released in November 2022, nearly 200,000 Indian students chose the United States as their higher education destination in the 2021-22 academic year, a 19 percent increase over the previous year. Of the over one million foreign students studying in the United States, one in five are Indian.
With an increasing number of students choosing the United States as their study destination, direct and indirect destination tourism in the form of student and family travel is a segment that is expected to see growth.
Repeat Travelers:
Among Indian travelers who currently have a U.S. visa, a high number are repeat travelers to the United States, and second- and third-time travelers demand new destinations and experiences. Interest in niche tourism sectors such as medical, wellness, or adventure tourism is growing. According to the U.S. Travel Association’s 2019 report, top activities that Indian visitors to the United States seek include shopping, sightseeing, national parks, art galleries/museums, fine dining, small towns, and historical locations while adventure, visiting friends and family, shopping, food and cuisine, and connecting with nature were the top incentivizing factors for Indians to visit the United States. These interests align well with off-the-beaten path locations and activities in the United States that will appeal to the repeat traveler who has already seen the more well-known destinations (e.g., New York City, California, Hawaii, Washington DC, etc.).
Niche and Luxury Travelers:
One of the key segments being targeted by destinations and tourism stakeholders as they look at India for revival of tourism is luxury travel. In 2021, pleasure travelers accounted for nearly 52 percent of total Indian travelers to the United States, which is higher than the category of student travel. Many of these travelers are high-net-worth individuals (HNIs) whose preference appears to be wellness resorts and villa staycations in the most stunning and exclusive locations. Data shows that the average Indian visitor to the United States spends $5,200, among the highest of all international visitors.
MICE Travelers:
India is poised to be the world’s fastest growing outbound MICE tourism market, expected to exceed $45 billion by 2025. It is the largest source market for Dubai and Singapore. The United States is one of the most aspirational destinations for MICE travelers who have the potential to become major spenders.
Opportunities and Way Forward:
The U.S. Travel and Tourism industry offers a number of opportunities to Indian travelers in terms of diverse tourist offerings: i.e., tourism to iconic landmarks, vibrant cities, natural wonders, cultural experiences, educational exchanges, as well as advanced healthcare facilities that attract medical and wellness tourism.
While there are currently long wait times for obtaining a first time B1/B2 visa, the U.S. Embassy and Consulates have taken several steps to streamline the visa application process and reduce wait times for Indian travelers. Initiatives such as the interview waiver program and the global entry program have been implemented to facilitate smoother travel for eligible individuals. In addition, there are currently over 3 million Indians who have a valid 10-year U.S. visa and constitute a major share of repeat travelers.
For more information about U.S. travel and opportunities from India, please contact the nearest U.S. office or one of our U.S. Commercial Service India offices.