Arun Anand, managing director of Midtown Travels, outlines how global uncertainties, weak demand in key source markets and a shortage of skilled manpower are affecting the inbound sector – he also points to opportunities in wellness and Buddhist tourism, and calls for stronger global promotion to improve India’s competitiveness
What are the key challenges being faced by inbound tour operators in the country today?
The ongoing geopolitical tensions in the Middle East are affecting both travel sentiment and flight connectivity. Additionally, global economic uncertainties in key source markets such as the UK is impacting longhaul travel demand to India. Moreover, rising operational costs and higher airfares are putting pressure on our margins too. Another major concern is the shortage of trained manpower. During the pandemic, many professionals in the tourism and hospitality sector moved to other industries and the gap in skilled talent continues to persist even today.
Has the US-Iran conflict resulted in cancellations too?
Yes, the conflict has had a significant impact on inbound business. Many tour operators are witnessing cancellations from key markets such as Europe and North America. If the situation continues for an extended period, it could adversely affect the outlook for the upcoming inbound season as well. Additionally, the rise in international airfares due to the US-Iran conflict is further dampening demand. We are remaining hopeful that the situation stabilises soon and that normalcy returns.
Direct flights between India and China have recently resumed. What prospects do you see in China as an inbound source market for India?
China obviously is a major source market for outbound travel globally. Though direct connectivity between the two countries is a good move, a lot needs to be done to grow Chinese inbound tourist arrivals in India. There is a need to look into the current visa process for Chinese travellers and make it more seamless. Visa processes for Chinese nationals have become more stringent in recent years. We also need more trained Mandarin speaking guides, hotel staff and signages to cater to the Chinese travellers. Bilateral relations between the two countries need to improve to position India as a preferred leisure destination for Chinese tourists.
What does India need to do to compete with neighbouring markets in attracting inbound travellers?
High hotel rates, abrupt increase in entrance fees at the monuments and high transport rates are some of the areas that need to be addressed when competing with our neighbouring destinations. It becomes difficult to attract business to India when foreign tour operators are able to secure more competitive deals from other countries. A coordinated effort between the government and industry stakeholders is essential to identify strengths and address gaps in order to compete effectively with our neighbouring markets.
Are there specific segments such as luxury travel, wellness tourism, adventure or spiritual tourism that should be prioritised to strengthen India’s position as an inbound tourism destination?
India is a diverse tourism destination with a wide range of offerings for different types of travellers. Post-pandemic, there has been a noticeable increase in demand for wellness tourism. As the birthplace of Ayurveda and Yoga, India is uniquely positioned in this segment and our wellness centres and properties across the country need to be promoted more effectively among international travellers. There is significant potential to attract far more wellness tourists than we currently do.
Buddhist tourism is another segment with immense growth potential. The footprints of Buddhism are spread across multiple states, allowing for the development of diverse circuits that showcase India’s rich Buddhist heritage rather than focusing on just a few destinations. Given the large global Buddhist population, this represents a high-potential market for India.
What measures from the government could help India attract more international tourists?
Earlier, India’s overseas tourism offices actively promoted the country through seminars, roadshows and participation in trade fairs in their respective markets. However, with the closure of these offices, a gap has emerged in effectively promoting Indian destinations. These offices should be re-established to strengthen international outreach. The government also needs to invest in consistent global marketing campaigns. At the same time, addressing perception-related issues is equally important to enhance India’s appeal as a tourism destination.
What is your outlook for inbound tourism to India over the next two to three years?
I believe inbound tourism in India will grow in the coming years. With ongoing infrastructure developments, economic growth and the country’s diverse range of tourism experiences, India is well positioned to attract more international visitors. However, it is essential to remain competitive with other countries in the region and address the challenges that are currently hindering the growth of inbound tourism.
