Fixing Tourism Strategy in India Amid Persistent Challenges

India's Tourism Strategy: A Tale of Missteps Amid Lofty Promises

India’s tourism sector, with its immense natural and cultural wealth, risks turning into a perennial underperformer despite optimistic projections and ambitious government schemes. The staggering drop in foreign tourist arrivals from the pre-pandemic peak of 10.93 million in 2019 to 9.95 million in 2024 underscores deeper structural flaws that have long plagued India’s ability to capitalize on this lucrative sector. While the government continues to push initiatives like Swadesh Darshan and the PRASHAD scheme, glaring institutional gaps leave the sector with unrealized potential. The weak fiscal commitment to tourism promotion in the Union Budget 2025–26 further exacerbates this systemic neglect.

The Institutional Landscape: Promises vs. Execution

India’s tourism governance reveals a patchwork of schemes working in isolation rather than cohesion. The development of 50 tourist destinations under a ‘challenge mode’ approach in Budget 2025–26 is hobbled by poor financial resourcing – the Ministry of Tourism’s budgetary allotment remains stagnant at ₹2,541 crore, with cuts to overseas promotion slashed from ₹33 crore to just ₹3.07 crore. For context, Thailand spends over $60 million annually on destination marketing. This fiscal myopia adversely impacts India’s visibility in key source markets like Europe and the US.

Programs like the Incredible India 2.0 campaign may sound aspirational, leveraging immersive technologies and tailored global campaigns, yet their execution is stymied by fragmented branding. The absence of strong collaboration between the Ministry of Tourism and state governments dilutes the effectiveness of both domestic and international outreach.

The Argument: Persistent Bottlenecks and Uneven Outcomes

The data paints a grim picture. Even as foreign spending in India reached ₹3.1 trillion in 2024, inbound arrivals remain below pre-COVID levels. India’s inability to meet rising global interest, particularly from lucrative Western markets, is rooted in structural bottlenecks. Despite the Indian Association of Tour Operators (IATO) highlighting demand growth for MICE (Meetings, Incentives, Conferences, Exhibitions) and wellness tourism from Europe and the US, slow eVisa processing and poor air connectivity to Tier-II cities constrain progress.

Travel & Tourism’s disproportionate regional concentration aggravates the struggle for equitable growth. The North Zone accounted for 35.62% of arrivals, while the Northeast languished at a meager 1.58% in 2024. Swadesh Darshan circuits, though conceptually sound, fail to address poor last-mile connectivity, sanitation challenges, and quality lodging gaps that hinder tourism in lesser-known regions.

India attracting fewer tourists than Thailand (12.9 million in 2023) or even smaller nations like Sri Lanka is indicative of systemic inefficiencies. Even though India excels in natural and cultural resources, ranking 39th in WEF’s Travel & Tourism Development Index 2024, this potential doesn’t translate into global competitiveness due to weak infrastructure and fragmented strategies.

The Counter-Narrative: Premiumization and Niche Focus

To the government’s credit, spending per foreign tourist has increased substantially. India is increasingly attracting high-value travelers owing to niche segments like yoga retreats, spiritual trails, and wellness tourism nurtured under the "Heal in India" initiative. This premiumization strategy is aimed at compensating for declining footfall by boosting per capita revenue. The argument here rests on long-term economic benefits: attracting fewer high-spending tourists may be more profitable than pursuing mass tourism models that strain local resources.

Moreover, schemes like the Adopt a Heritage Project demonstrate that public-private partnerships (PPPs) can yield tangible benefits, as evidenced by improved amenities at adopted monuments. Medical tourism also continues to grow, with streamlined visa processes and healthcare partnerships enhancing India’s reputation as a destination for affordable but high-quality treatment.

International Perspective: Thailand vs. India

In contrasting India with Thailand, the latter demonstrates how targeted, cohesive tourism marketing – supported by infrastructure-rich hospitality ecosystems – yields consistent growth. Thailand seamlessly integrates local governance with central tourism authorities, ensuring accessibility, lodging, and branding align universally. By comparison, India’s fragmented multi-agency approach and surface-level schemes like IITFC fail to address deeper infrastructural deficits that deter potential tourists.

Thailand’s air connectivity to even remote islands via multiple international routes amplifies accessibility. India’s reliance on major hubs like Delhi and Mumbai, without sufficient connectivity to Tier-II cities, weakens regional tourism prospects. While Thailand subsidizes promotion aggressively, India’s paltry ₹3.07 crore allotment for global branding dims its visibility in competitive markets.

Institutional Critique: Token Measures Without Structural Reform

India’s governance of tourism betrays a lack of long-range planning and fiscal prioritization. Programs such as the Incredible India Tourist Facilitator Certification (IITFC) and SAATHI initiative – while focused on hygiene and training – don’t address endemic systemic gaps such as visa ease, regional connectivity, or equitable resource distribution. The slow-moving bureaucratic machinery impedes vital reforms like universal visa-on-arrival access to drive inbound growth.

Equally severe is the absence of integrated circuits that can generate sustained interest across diverse tourist segments. South India, home to some of India’s most pristine heritage and coastal assets, remains disconnected from international air routes, leaving these circuits underutilized. Moreover, the National Integrated Database of Hospitality Industry (NIDHI) remains more focused on registration formalities than creating a growth-friendly ecosystem for small hospitality businesses.

Assessment: Reforming Tourism With Realistic Solutions

Fixing India’s tourism strategy demands more than token initiatives like digital campaigns or scattered destination development schemes. The government must prioritize enhancing infrastructure connectivity, simplifying visa access, and investing directly in high-impact global branding. Reviving “Incredible India” in a digital-first, budget-maximized avatar remains non-negotiable.

Soft power diplomacy can also play a critical role by aligning tourism outreach with India’s foreign policy objectives. Public-private partnerships should evolve from monument preservation to encompass integrated infrastructure projects. Additionally, incentivizing regional tourism through tax benefits and state-coordinated funding can unlock growth potential in underdeveloped areas like the Northeast.

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