The tourism industry has seen many changes in recent years due to global events, and the year 2022 was no exception. While the world grappled with high inflation, interest rates, and a cost of living crisis, the Indian economy continued to exhibit resilience and growth. This was due in part to lower shocks to income, resilient domestic demand, and policy support, which enabled India to stand out as a bright spot among the rest of the world.
According to aggregated and anonymized data collected by the Mastercard Economics Institute, Delhi, Mumbai, and Chennai continue to see higher spending from travellers to India. On the other hand, Dubai, London, and Singapore remain popular destinations for Indian tourists. Interestingly, while travelling abroad, the wallet share of spend by Indians is higher on hotels, electronics, and gifts than what a typical traveller would spend from the rest of the world.
India's South Asian neighbours presented a grimmer picture with depleting forex reserves led by the depreciating value of their currencies, higher import bills due to high energy and food prices, low inward remittances, and tourism. Despite this, the Maldives' tourism recovery has been exceptional. The island nation witnessed higher inbound tourism than pre-pandemic levels regarding the number of arrivals and night bookings.
As of December 2022, the metro cities of Delhi, Mumbai, and Chennai continued to see the largest spending from foreign tourists, while tier 1 and smaller cities of Hyderabad, Ahmedabad, and Lucknow seem to be gaining popularity. The wallet share of spend for these travellers seems to have moved away from hotels and restaurants to clothing and gifts/jewellery. Spending in India on apparel, electric appliances, gifts, and jewellery is much higher than what tourists typically spend in other countries.
India's tourism industry will likely continue to evolve in the coming years. With the world still grappling with the COVID-19 pandemic, travel restrictions and vaccination requirements are likely to continue to shape the industry. However, with the Indian economy showing resilience and growth and popular destinations like the Maldives seeing exceptional recovery, there is reason to be optimistic about the future of tourism in the region.
In conclusion, while the rest of the world grappled with various economic challenges, the Indian tourism industry has remained resilient and showed positive growth. Delhi, Mumbai, and Chennai continue to see higher spending from travellers to India, while Dubai, London, and Singapore remain popular destinations for Indian tourists. The industry is likely to continue evolving in the coming years, with new trends and patterns emerging.