Gen Z Travellers Will Accelerate The Future Of Tourism In India

As we look toward National Tourism Day (Jan. 25), it is important to continue supporting initiatives that enhance the tourism sector, celebrate India’s rich cultural diversity, and promote sustainable travel practices for future generations

India’s tourism industry, which offers vast opportunities for growth, is one of the most significant contributors to the nation’s economy. According to recent reports, it is the fifth largest travel and tourism market on the global firmament. Incidentally, the country’s tourism sector is poised to become the third largest domestic travel market by 2027.

The Union Government promotes tourism as a vehicle for social inclusion, employment and economic progress. Committed efforts are being made to transform India into a desirable tourist destination, and the tourism sector is becoming a key driver to realising the vision of a developed country status by 2047. Acknowledging its immense potential, the government has allocated ₹2,479 crore to the sector for FY25.

Domestic tourism plays a crucial role in the overall growth of the tourism sector. These efforts focus on raising awareness about key tourist destinations and products within the country and facilitating growth in tourism-related activities. These efforts have shown a positive trajectory in domestic tourism. As per 2023 records, approximately 2509.63 million Domestic Tourist Visits (DTVs) were registered (provisionally) compared to 1731.01 million DTVs in 2022. Further, in 2022-23, 76.17 million direct and indirect jobs were created by the tourism sector as against 70.04 million direct and indirect jobs created in 2021-22.

Over the last few years, India has built extensive tourism infrastructure worth approximately Rs. 7,000 crore to improve the experience of tourists. To make India a global travel destination, the country's tourism products are being promoted holistically within the country and across overseas markets.

While international tourist arrivals and T&T’s contribution to global GDP are expected to reach pre-pandemic levels, the recovery has varied by region and segment. However, it continues to deal with other external challenges, from growing macroeconomic, geopolitical and environmental risks to increased scrutiny of its sustainability and the application of new digital technologies such as big data and AI.

Given that T&T has historically accounted for a tenth of global GDP and employment, decision-makers in the sector and beyond must recognize the need for strategic and holistic approaches if they are to properly navigate increasingly complicated conditions and unlock T&T’s great potential to provide prosperity for communities around the world.

Every January 25 marks the National Tourism Day, which is dedicated to raising awareness about the vital role tourism plays in economy and cultural preservation. This day brings together citizens, government bodies and the public to celebrate the achievements of the tourism industry while planning for its future.

The Union Ministry of Tourism has implemented several initiatives over the years to enhance and promote the sector. These efforts have been aimed at developing infrastructure, improving services and attracting both domestic and international tourists.

National Tourism Day acts as a reminder of the immense potential of the tourism sector in India. Despite its growing importance to the national economy, the sector faces several challenges that hinder its full development. However, with focused efforts and innovations, the future of tourism in India looks promising.

National Tourism Day serves as a reminder of the importance of tourism in India’s economy, culture, and heritage. By celebrating this day, we acknowledge the positive impact of tourism on creating jobs, promoting cultural exchange, and boosting economic growth.

As we look toward National Tourism Day 2025, it is important to continue supporting initiatives that enhance the tourism sector, celebrate India’s rich cultural diversity, and promote sustainable travel practices for future generations.

Jean-Jacques Morin, the deputy chief operating officer of the Accor SA hotel group, believes that countries like India, Indonesia and Vietnam could soon experience a 'tourism bonanza' as more people join growing middle classes and begin to get wealthy. Speaking in Bangkok, Morin noted that these are people with money to spare who increasingly 'don't buy products, but experiences', accelerated by the virus. He pointed to India's growing travel market, driven by the emergence of its middle class and record aircraft orders from Air India and IndiGo, ahead of what they anticipate will be a full rebound in domestic travel and a strong increase in international travel.

"The middle class is the most critical important driver of this industry. When you become slightly wealthier, you want to see the world," said Morin.

Further, Morin added that Gen Z travelers will lead the future of tourism, especially in boutique and design-driven hotels. The younger tourist, who tends to spend more on food and drinks and loves 'bleisure' trips, is going to drive the demand for more innovative and experiential travel options in the years ahead.