India Travel and Tourism Outlook

According to the U.S. Travel Association (USTA), overall travel in the United States accounted for $1.3 trillion in direct spending in 2023, creating an economic footprint of $2.8 trillion. In 2023, travel supported 15 million American workers and directly employed 8 million.

India emerged as Asia’s largest source market for outbound travelers in 2022, surpassing China, South Korea, and Japan. The total expenditure by Indian tourists in the United States stood at approximately $13 billion in 2022. The most recent report published at the 2024 International Tourism Exchange (ITB) in Berlin indicates an impressive year-on-year rise of 190% for Indian outbound travelers, a sharp recovery from the depths of the COVID-19 pandemic. As of May 2023, India became the second-largest international source of tourist arrivals in the United States. With the number of visitations to the United States increasing year on year, U.S. destination marketing organization Brand USA forecast more than 2 million Indians may visit the United States by 2028, which would be an increase of 20% from 2023.

Opportunities for U.S. Travel Destinations

The U.S. Commercial Service works closely with Brand USA to promote travel and tourism from India to the United States. The team is actively involved in organizing virtual and in-person events as the sector recovers from the pandemic. U.S. destinations are regularly featured in Indian publications and media. Indian travel agents indicate that their clients have already visited the best-known attractions in the United States and now seek new experiences such as sports and adventure packages, food and cultural festivals, and niche market activities when visiting the country. Destinations that have not traditionally drawn large numbers of Indian travelers may find success in catering to the growing number of travelers seeking new experiences.

India presents a significant market opportunity for U.S. travel and tourism destinations, and there is much that U.S. destination marketing organizations can do to gain market share and become the destination of choice for Indian travelers. Given the increased competition from tourism promotion organizations around the world, U.S. destinations, attractions, service providers, and tourism marketing organizations should include India in their marketing and outreach strategies. The U.S. Commercial Service can advise and assist the U.S. travel industry on the Indian tourism media ecosystem to maximize exposure and facilitate communication with specific publications. U.S. destinations should also consider the following local trade show to meet with India travel trade industry: South Asia’s Travel & Tourism Exchange (SATTE), February 19-21, 2025, New Delhi.

For market research, information about current travel trends, or establishing a local presence in India, please reach out to the nearest U.S. office or Travel and Tourism team at the U.S. Commercial Service in India.