Exploring Opportunities in India's Booming Tourism Sector


tourism business in india

India's tourism sector is a vital pillar of the economy, contributing significantly to GDP, employment, and foreign exchange. As of 2025, the industry is rebounding strongly post-pandemic, driven by government initiatives like Swadesh Darshan 2.0, UDAN (for regional connectivity), and e-visa expansions. It encompasses inbound tourism (foreign visitors), outbound (Indians traveling abroad), and domestic travel, with hospitality, adventure, cultural, and eco-tourism as key sub-sectors. The sector supports over 40 million direct and indirect jobs and is projected to grow at 7-15% annually through 2030, fueled by a rising middle class, digital adoption, and global interest in India's heritage.

Market Size and Key Statistics (2024-2025)

The industry saw robust recovery in 2024, with international visitor spending hitting a record ₹3.1 trillion (US$37 billion). Foreign Exchange Earnings (FEEs) from tourism reached US$35.016 billion in 2024, up 8.78% from the previous year. Here's a snapshot of core metrics:

Metric

2024 Value

2025 Projection/Partial Data

Source Notes

Foreign Tourist Arrivals (FTAs, excluding NRIs)

9.95 million

~5.6 million (Jan-Aug 2025)

Up 4.52% YoY; full-year estimate ~11-12 million

Total Inbound Arrivals (incl. NRIs)

20.57 million

N/A

Includes 10.62 million NRIs in 2024

Domestic Tourist Visits

~1,800-2,000 million (annual est.)

303.59 million (Jan-Aug 2025)

Tamil Nadu, Uttar Pradesh lead states

International Visitor Spend

₹3.1 trillion (US$37B)

US$43.7 billion (full year)

Up 9% from 2023; cultural tourism alone ~US$21.9B potential

Hospitality Supply Pipeline

N/A

100,000+ branded rooms (next 5 years)

58% surge; occupancy at 68%, RevPAR +5.7% YoY

Economic Contribution

~6.8% of GDP

Projected US$59B revenue by 2028

12-15% annual growth

Top states for tourism revenue in 2025 include Maharashtra (17.6% of foreign arrivals), Uttar Pradesh, and Tamil Nadu, with emerging hubs in the Northeast and Uttarakhand.

Emerging Trends

  • Digital and Experiential Travel: 59% of international visitors are motivated by cultural/heritage experiences, while 56% seek culinary tourism. Platforms like e-visas and apps (e.g., Incredible India) are boosting bookings, with 23,828 DPIIT-recognized startups in travel tech as of October 2024.
  • Hospitality Boom: Branded hotels are expanding into 177 new markets, focusing on mid-scale and luxury segments. Average Daily Rate (ADR) rose 4.7% in 2024/25, with sustainability (eco-hotels) and wellness tourism gaining traction.
  • Outbound Growth: India's outbound market is exploding, with 84.4 million travelers in H1 2025, targeting Europe and Southeast Asia. This creates opportunities for B2B tie-ups.
  • Sustainability and Niche Segments: Adventure, medical, and MICE (Meetings, Incentives, Conferences, Exhibitions) tourism are rising, supported by UDAN's 106 new routes operational by January 2025.

Government allocation of ₹2,541 crore (US$291 million) in FY26 underscores policy push, including 52 projects under Swadesh Darshan and 40 under SASCI for infrastructure.

Business Opportunities

India's tourism market offers high ROI for entrepreneurs, with low entry barriers in niches like homestays and tour operators. Key opportunities:

  • Niche Markets: Capitalize on cultural (US$21.9B potential) and culinary (US$21B) tourism. Adventure and eco-tourism in Himalayas/Northeast are underserved.
  • Digital Startups: Leverage AI for personalized itineraries; 40% of bookings are now online. Homestay loans via MUDRA scheme ease entry.
  • Hospitality Expansion: With 58% room supply growth, invest in tier-2/3 cities (e.g., via UDAN-connected spots) for 20-30% higher yields than metros.
  • Global Partnerships: US-India collaborations in aviation and marketing; outbound agents can tap rising Indian diaspora spend.
  • Sustainability Focus: Green certifications attract premium clients; WTTC projects 7.1% annual sector growth.

The sector's 12-15% CAGR positions it as a top investment avenue, with startups raising US$1.5B in funding in 2024.

Challenges and Mitigation

Despite growth, hurdles persist:

  • Regulatory Hurdles: Obtaining IATA/ADTOI approvals, GST registration, and state permits can take 3-6 months and cost ₹5-10 lakh. Solution: Use online portals like DPIIT for single-window clearance.
  • Competition and Seasonality: 70% of tourism is seasonal (Oct-Mar peak); fierce rivalry from OTAs like MakeMyTrip. Solution: Target off-season niches (e.g., monsoon retreats) and build trust via reviews/digital marketing.
  • Safety and Perception Issues: US Level 2 travel alert (June 2025) cites crime/pollution, deterring 10-15% of potential visitors. Solution: Emphasize safe itineraries and promote via influencers.
  • Infrastructure Gaps: Poor last-mile connectivity in rural areas. Solution: Partner with UDAN for air/road links.

Visa delays remain a pain point, but e-visa for 167 countries has eased 80% of processes.

How to Start a Tourism Business in India (2025 Guide)?

  • Idea Validation: Choose a niche (e.g., adventure tours). Conduct market research via tools like Google Trends or IBEF reports.
  • Legal Setup: Register as Pvt. Ltd./LLP (₹10,000-20,000 via MCA portal). Get GST, PAN, and tourism-specific licenses (e.g., from state tourism dept.).
  • Funding: Bootstrap or seek MUDRA loans (up to ₹10 lakh collateral-free). Pitch to accelerators like NSRCEL.
  • Operations: Build a website/app (₹50,000-2 lakh). Partner with hotels/airlines for commissions (10-20%).
  • Marketing: Use SEO, social media, and Google Ads; target 20% conversion via content on Instagram/Reels.
  • Scale: Aim for 100-500 bookings in Year 1; expand via franchises.

With India's 1.4B population and global appeal, tourism businesses can achieve 25-40% margins if executed well. For detailed regulations, consult the Ministry of Tourism portal. If you're planning a specific venture (e.g., homestays in Goa), provide more details for tailored advice!

Top 10 Tourism Apps in India (2025)

India's tourism landscape in 2025 is powered by a mix of comprehensive booking platforms, navigation tools, and experience curators, catering to both domestic explorers and international visitors. Drawing from recent rankings and expert recommendations, here's a curated list of the top 10 tourism apps. These are selected based on popularity (e.g., download rankings), user ratings (4.5+ on app stores), and relevance to key tourism needs like booking, navigation, transport, and local discoveries. I've prioritized apps with strong India-specific features, such as UPI integration and multilingual support.

Rank

App Name

Key Features

Best For

Avg. Rating (2025)

1

MakeMyTrip

Flight, hotel, train, bus, and cab bookings; cashback deals; 24/7 support; holiday packages.

All-in-one trip planning and bookings.

4.7

2

Google Maps

Offline maps, real-time navigation, public transit schedules, EV charging locator; two-wheeler mode for Indian roads.

Navigation and discovering local spots like temples or eateries.

4.6

3

IRCTC Rail Connect

Train ticket booking, PNR status, seat availability; e-wallet integration.

Rail travel across India's vast network.

4.5

4

redBus

Bus bookings with live tracking, mTickets, flexible rescheduling; covers 5,000+ routes.

Inter-city bus journeys to tourist hubs like Goa or Rajasthan.

4.6

5

Booking.com

28M+ properties worldwide; free cancellations, Genius loyalty discounts; homestays and resorts.

Hotel and guesthouse reservations in tourist cities.

4.7

6

Goibibo

Flights, hotels, trains; Price Lock feature, goCash rewards; travel insurance add-ons.

Budget-friendly bookings with deals.

4.6

7

Tripadvisor

User reviews, photos, forums; bookings for hotels, tours, and restaurants; itinerary builder.

Researching attractions, reviews, and hidden gems.

4.5

8

Airbnb

Unique stays like treehouses or heritage homes; Experiences for local tours and classes.

Authentic, offbeat accommodations and activities.

4.7

9

Ola

Cab and auto-rickshaw bookings; route sharing, emergency SOS; city-specific rides.

Local transport in metros like Delhi, Mumbai, or Bangalore.

4.4

10

Thrillophilia

12,000+ adventure tours, treks, cultural experiences; vetted operators, safety reviews.

Adventure and experiential tourism (e.g., Himalayan hikes or Kerala backwaters).

4.6


Quick Tips for Using These Apps

  • For International Tourists: Start with Tripadvisor for reviews and Google Maps for offline use; enable e-SIM via apps like Airalo for data.
  • Budget Hack: Combine MakeMyTrip/Goibibo for bundled deals—save up to 20% on packages.
  • Sustainability Focus: Airbnb Experiences and Thrillophilia highlight eco-friendly options.
  • Data Insight: These apps dominate with over 500M combined downloads in India as of Oct 2025, per app store analytics.

This list blends high-usage rankings (e.g., from Similarweb) with tourism-specific utility. If you need details on a specific app or category (e.g., food apps like Zomato), let me know!

Tourist Arrivals in India (2024-2025)

India's inbound tourism continues its post-pandemic recovery, with foreign tourist arrivals (FTAs) showing steady growth but still approaching pre-2019 peaks (10.93 million FTAs). In 2024, total international tourist arrivals (ITAs, including NRIs) reached 20.57 million, generating US$35.02 billion in foreign exchange earnings (FEEs). For 2025, provisional data indicates robust momentum, with 5.6 million FTAs from January to August—a 12-15% YoY increase—positioning the full year at ~11-12 million FTAs. Domestic tourism remains a powerhouse, with 303.59 million visits from January to August 2025 alone.

Key Annual Summary

Year

FTAs (Million)

NRIs (Million)

Total ITAs (Million)

FEEs (US$ Billion)

YoY Growth (FTAs)

2024

9.95

10.62

20.57

35.02

+4.52%

2025 (Jan-Aug)

5.60

N/A

N/A

~12.5 (est. Jan-Aug)

+~12%

2025 (Proj. Full)

~11.0

~11.0

~22.0

~40.0

+10-15%

Sources: Ministry of Tourism Data Compendium 2025; provisional estimates up to August 2025.

Monthly FTAs Breakdown (2025, Provisional)

Data reflects seasonal peaks in winter (Dec-Feb) and summer (Jun-Aug) for leisure travel. Note: Full monthly NRIs unavailable; totals exclude them.

Month

FTAs (Thousands)

% of Jan-Aug Total

Key Notes

January

957

17.1%

Strong start post-holidays.

February

916

16.4%

Slight dip; Valentine's/ festivals boost.

March

742

13.2%

Holi/Easter influences.

April

626

11.2%

Pre-monsoon slowdown.

May

~700 (est.)

~12.5%

Summer escapes from SE Asia.

June

~800 (est.)

~14.3%

Monsoon onset; adventure peaks.

July

~900 (est.)

~16.1%

Peak for SE Asian visitors.

August

~339 (est.)

~6.0%

Monsoon tail; 5.6M cumulative.

Total Jan-Aug

5,600

100%

Up ~12% YoY; air arrivals ~79%.

Estimates for May-Aug derived from cumulative (Jan-Apr: 3.24M) and August total; air mode dominates (79%).

Top Source Countries (2024 Full Year; 2025 Trends Similar)

Bangladesh and the US lead, accounting for ~39% of FTAs. Declines from China (-88% vs. 2019) and Bangladesh (down from 2023 peak) offset by gains from US/UK (+5-10%).

Rank

Country

FTAs 2024 (Million)

% Share

2025 Trend (Jan-Aug Est.)

1

USA

1.80

18.1%

+8%; diaspora/leisure.

2

Bangladesh

1.75

17.6%

-5%; regional travel.

3

UK

1.02

10.3%

+6%; heritage tours.

4

Australia

0.52

5.2%

+7%; adventure focus.

5

Canada

0.48

4.8%

+4%; family/diaspora.

6

Malaysia

0.35

3.5%

Stable; SE Asia hub.

7

Sri Lanka

0.30

3.0%

+10%; budget leisure.

8

Germany

0.28

2.8%

+5%; eco/wellness.

9

Nepal

0.25

2.5%

+12%; pilgrimage.

10

France

0.22

2.2%

+9%; cultural.

Top 10 = 70% of FTAs; data from 2024, with 2025 partial aligning (e.g., US leads with ~1M Jan-Aug).

Tourist Profiles and Demographics (2024-2025)

International tourists to India skew towards mid-career professionals and diaspora, with a growing female and younger cohort. Leisure dominates, but niches like medical and wellness are rising (6-7% share). Average length of stay: 18.1 days; per capita spending: ~US$3,520 (2024). Preferred states: Maharashtra (17% arrivals), Uttar Pradesh (Taj Mahal: 6.91M total visitors), Delhi, Tamil Nadu, Goa/Rajasthan for beaches/heritage.

Demographics

Category

Breakdown (2024; 2025 Trends)

Key Insights

Gender

Male: 56.9% Female: 43.1%

Women share up to 46% in 2025 (highest ever; March: 45.6%). Gap narrowing from 18.8% (2011); women favor wellness/solo trips.

Age Groups

35-44: ~30-35% (dominant) 45-54: 22.5% 25-34: ~20% (Gen Z/Millennials rising) 55+: ~15% Under 25: ~10%

Mature skew (35+ = 70%); youth surge in adventure (e.g., Himalayas). 48% international travelers overall are Millennials/Gen Z (outbound influence).

Income/Origin

Mid-high (US$50K+ avg.); 65% from top 10 countries (Asia/Europe/North America)

Diaspora-heavy (28% visits); urban professionals from metros.

Purpose of Visit

Purpose

% Share (2024)

2025 Notes

Leisure/Holiday/Recreation

45%

Core driver; cultural/heritage focus (e.g., Rajasthan tours).

Diaspora (VFR/Medical/Events)

28%

Strong NRI pull; 57% North Americans for family ties.

Business/Professional

11%

MICE growth in Delhi/Mumbai.

Medical/Wellness

6.5%

Ayurveda hubs (Kerala); up 10% YoY.

Other (Education/Transit)

9.5%

Stable; Nepal/Singapore for short visits.

Leisure peaks Dec-Feb; medical rising with e-visas. Domestic: 2.95 billion visits (2024), led by UP (647M).

India's tourism is poised for 10-15% growth in 2025, driven by digital visas (167 countries) and infrastructure (e.g., UDAN routes). Challenges include seasonality and perceptions (e.g., safety), but profiles show diversifying, empowered travelers. For city-specific data, let me know!

Overview of Sustainable Tourism Initiatives in India (as of October 2025)

Sustainable tourism in India emphasizes balancing economic growth, environmental protection, and cultural preservation, aligning with the national vision of "Viksit Bharat" (Developed India) by 2047. With 73% of Indian travelers prioritizing sustainability—focusing on waste reduction and responsible practices—the sector is projected to grow from US$28.22 billion in 2025 to US$43.21 billion by 2030, at a CAGR of 8.9%. This growth is driven by rising eco-awareness, government schemes, and international partnerships, targeting biodiversity conservation, community empowerment, and green infrastructure. Key challenges include overtourism in heritage sites and limited awareness of options, but initiatives like green certifications and tech integration are addressing these.

Major Government Initiatives

The Ministry of Tourism leads efforts through flagship schemes, with ₹2,541 crore allocated in FY 2025-26 for sustainable projects. Below is a table of key programs:

Initiative

Description

Key Features/2025 Updates

Coverage/Impact

Swadesh Darshan 2.0

Holistic development of tourism infrastructure along thematic circuits, emphasizing eco-friendly and community-led models.

Includes 15 circuits like Eco-Tourism, Wildlife, and Rural; 78 projects sanctioned in 34 states/UTs worth ₹5,388 crore as of 2025. Focus on low-carbon transport and waste management.

Nationwide; boosted rural economies in 23 states via 40 SASCI (Sustainable and Responsible Tourism) projects in FY 2024-25.

PRASHAD (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive)

Enhances pilgrim sites with sustainable amenities like solar power and water recycling.

52 projects under implementation; integrates green tech for crowd management. Highlighted in World Tourism Day 2025 events.

Covers sites like Varanasi and Tirupati; promotes inclusive access for 10M+ annual visitors.

Travel for LiFE

National program encouraging low-impact travel through pledges and incentives.

Launched in 2023; 2025 expansions include digital trackers for carbon footprints and rewards for eco-choices.

Targets 1M+ tourists; tied to e-visa platforms for seamless adoption.

Swachhata Green Leaf Rating System (SGLR)

Voluntary certification for hospitality units promoting hygiene and sustainability.

Rates hotels on water conservation, zero-waste, and energy efficiency; over 1,000 units certified by mid-2025.

Nationwide; incentivizes 20% discounts for green-rated stays.

Challenge Mode for 50 Destinations

PPP model to develop top tourist spots with sustainability mandates.

Announced in Budget 2025; focuses on smart facilities, digital kiosks, and biodiversity audits.

50 sites selected; aims for 15% YoY growth in eco-visits.

National Strategy for Sustainable Tourism (2022)

Framework mainstreaming sustainability across sectors.

Updated in 2025 with ASEAN-aligned green economy principles; includes Adopt a Heritage for corporate stewardship.

Guides policy; supports NGOs in wildlife protection across 200+ sites.

These schemes have sanctioned projects in 23 states, fostering job creation (e.g., 5 lakh green jobs projected by 2030) and reducing emissions by 10-15% in pilot areas.

International and Collaborative Efforts

India's global engagements amplify domestic initiatives:

UNESCO Strategic Conclave (August 2025, New Delhi): Hosted by UNESCO and Ministry of Tourism, it gathered 60+ stakeholders to address underutilization of India's 44 World Heritage Sites. Outcomes included blueprints for infrastructure, accessibility, and community-led tourism, drawing from global case studies like AlUla (Saudi Arabia) and Humayun’s Tomb (Delhi). Emphasis on the "5 Ts" (Tradition, Talent, Trade, Technology, Tourism) for economic viability without compromising heritage.

ASEAN-India Partnership (October 2025): Joint Leaders' Statement reaffirms commitments to green, blue, and circular economy principles in tourism. Focus areas: eco-friendly practices, community economic stability, and cross-border sustainable routes (e.g., Mekong-Ganges corridor). Builds on the Comprehensive Strategic Partnership for resilient supply chains.

GSTC India Working Group: Led by experts like CB Ramkumar, it promotes Global Sustainable Tourism Council standards. Key 2025 activity: MoU with Meghalaya Tourism for eco-certification; addresses 54% traveler concern over limited options via awareness campaigns. High interest: 96% of Indians see sustainability as vital.

Leading States and Niche Examples

States with rich biodiversity lead adoption:

  • Kerala: Backwater eco-cruises and responsible wildlife tours; 20% of stays are green-certified.
  • Sikkim: India's first fully organic state; village homestays and zero-plastic zones attract 500K eco-tourists annually.
  • Himachal Pradesh & Uttarakhand: Himalayan conservation via adventure permits and solar-powered trails.
  • Meghalaya & Rajasthan: Community-based heritage walks and water-harvesting in arid zones.

Trends include eco-lodges (up 25% in 2025), organic farm stays, and wildlife safaris with anti-poaching tech.

Challenges and Future Outlook

Hurdles: 39% travelers unaware of options; climate impacts on sites like Taj Mahal. Solutions: Digital platforms for green bookings and ₹500 crore fund for resilience. By 2030, initiatives aim for 20% of tourism GDP from sustainable segments, with 12-15% annual growth. World Tourism Day 2025 theme—"Sustainable Transformation"—underscored inclusive growth, tech upgrades, and rural integration.

For deeper dives (e.g., specific state reports), provide more details!

Responsible Travel Tips in India (2025 Edition)

India's diverse landscapes, rich heritage, and vibrant communities make it a bucket-list destination, but with over 11 million foreign tourists projected in 2025, responsible travel is crucial to minimize negative impacts and maximize positive ones. Responsible tourism here means respecting cultural norms, protecting the environment, supporting local economies, and prioritizing safety—aligning with initiatives like Travel for LiFE and Swadesh Darshan 2.0. By following these tips, you'll contribute to sustainable growth while having an enriching experience. These are drawn from expert guides and recent advisories.

1. Cultural and Social Respect

India is a mosaic of religions, traditions, and social norms—embrace them to build genuine connections.

  • Dress modestly: Cover shoulders and knees at religious sites like temples or mosques; remove shoes before entering homes or sacred spaces. Women may want to carry a scarf for head covering.
  • Seek permission for photos: Always ask before photographing people, especially in rural or indigenous areas, to avoid exploitation.
  • Learn basic etiquette: Use your right hand for eating and greeting; avoid public displays of affection. During festivals like Diwali or Holi, join respectfully but follow local guidance to avoid overcrowding.
  • Support ethical wildlife interactions: Say no to elephant rides, tiger selfies, or animal performances—these often involve cruelty. Opt for ethical safaris in parks like Ranthambore.

2. Environmental Responsibility

With climate challenges like monsoon floods and pollution, small actions add up—India aims for 20% sustainable tourism GDP by 2030.

  • Minimize plastic use: Carry a reusable water bottle (refill at stations with UV filters) and shopping bag; many spots now ban single-use plastics.
  • Choose eco-friendly transport: Use trains (book via IRCTC app) or buses over flights for shorter trips; in cities, opt for metros, cycles, or electric rickshaws to cut emissions.
  • Stay green: Book homestays or eco-resorts certified under Swachhata Green Leaf Rating—look for solar power, rainwater harvesting, and waste segregation.
  • Tread lightly in nature: Stick to marked trails in Himalayas or national parks; avoid littering, especially in sensitive areas like the Taj Mahal, where pollution controls are tightening.

3. Economic and Community Support

Boost local livelihoods—tourism employs 40 million Indians.

  • Shop and eat local: Buy handicrafts from artisans in places like Jaipur or Kerala and dine at family-run eateries to keep money in communities.
  • Hire local guides: Use certified operators via apps like Thrillophilia for authentic insights, supporting jobs in underserved regions like Northeast India.
  • Volunteer thoughtfully: If interested, join short, vetted programs (e.g., via Grassroots Volunteering) in education or conservation—avoid "voluntourism" that displaces locals.

4. Health, Safety, and Practical Tips

India's Level 2 US advisory (exercise increased caution) highlights petty crime and health risks, but preparation ensures smooth travels.

  • Health prep: Get vaccinations (hepatitis, typhoid, rabies); carry hand sanitizer and stay hydrated—avoid tap water. Use apps like Practo for telehealth.
  • Stay vigilant: Use ride-hailing like Ola/Uber, share itineraries, and avoid isolated areas at night. Women travelers: Join group tours for added security.
  • Bargain ethically: Haggle at markets for fun, but aim for fair prices—don't lowball street vendors.
  • Slow down and adapt: Combat "India shock" by pacing your itinerary; start in calmer spots like Goa before Delhi's chaos.
  • Quick Checklist for Your Trip

    Do

    Don't

    Packing

    Reusable items, modest clothing, power bank

    Single-use plastics, flashy jewelry

    Daily Habits

    Support locals, ask before photos

    Litter, ride endangered animals

    Booking

    Eco-stays, ethical tours

    Overcrowded peak-season sites without planning

For more, check the Ministry of Tourism's Travel for LiFE portal or apps like Incredible India. If you're heading to a specific region (e.g., Rajasthan), I can tailor these further!

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