Indian tourists visit 1881 Heritage in Tsim Sha Tsui, Hong Kong. - SCMP
HONG KONG (SCMP): A growing appetite for overseas travel among India’s middle class is reshaping tourism trends in Asia, with destinations including Hong Kong and Central Asia seeing spikes in interest due to improved connectivity and affordable packages, industry analysts say.
Indian residents who took two or more trips in one year rose by 32 per cent from June 2023 to May 2024, according to a report published earlier this month by MakeMyTrip Limited, India’s leading online travel company.
The report, titled “How India Travels Abroad”, also found that Indians are increasingly exploring new destinations such as Kazakhstan’s capital of Almaty, and Baku, capital of Azerbaijan, with annual growth of 527 per cent and 395 per cent for online searches, respectively.
Interest in luxury travel has been rising, with online searches for Hong Kong surging by 131 per cent annually as Indian businessmen see the city as a gateway to mainland China to seal deals and explore the city’s clubs and restaurants. This was followed by searches to Sri Lanka, Japan, Saudi Arabia and Malaysia.
Hong Kong has attracted the attention of premium Indian travellers because they view the city “as a glamorous, multifaceted and experience-rich international city – a place worth splurging”, according to Gary Bowerman, director of Check-in Asia and co-host of travel podcast The South-Eeast Asia Travel Show.
More than half of all trips to international destinations were for leisure, followed by 33 per cent for visiting friends and relatives, the report said.
International travel search volumes were steady across all seasons, with December being the most active month.
The United Arab Emirates, Thailand and the United States ranked among the top three countries of interest for Indian travellers, followed by Singapore and Indonesia, the report said.
“With a growing middle class and the rise of affordable international packages, many first-time travellers [from India] are heading abroad. This trend will contribute to sustained growth, especially in regional destinations,” said Mayur Patel, head of Asia at travel data provider OAG.
India’s travel boom is also partly due to better flight connectivity and easier visa processing in several regional countries including Thailand, Indonesia and Malaysia. The easing of stringent travel curbs imposed during the pandemic has further increased outbound tourism volumes, according to Patel.
He estimated that the number of Indians travelling overseas last year grew between 15 and 20 per cent compared with pre-pandemic levels.
“This momentum is expected to continue in 2024, with projected growth of 10 to 15 per cent year-on-year.”
With the country’s middle class expected to grow by 40 million to 50 million people by 2025, the base of potential outbound tourists was projected to expand significantly, Patel added.
Millennials and Gen Z in India are also breaking travel conventions as more of them are travelling independently rather than with tour groups, according to Patel. As such, this could lead to a rise in backpacking, solo and sustainability travel, he added.
The report’s findings on Indian travellers could boost prospects for the tourism industry as more visitors from China – a key market in the region – seek domestic destinations.
“The growth of Indian outbound tourism is increasingly evident as middle-class travel horizons broaden and destination choices diversify,” Bowerman said.
Countries in South-East Asia, North-East Asia, the Middle East and Central Asia are marketing more smartly to Indian tourists, and are negotiating to increase connecting flights, especially to secondary Indian cities, according to Bowerman.
Experienced Indian travellers were becoming more adventurous and comfortable heading to unfamiliar places, he added.
Bowerman noted that Central Asian nations such as Kazakhstan and Azerbaijan had successfully tapped into the trend by raising their profile as a compelling destination for tourists from the Asia-Pacific and the Middle East seeking new experiences.
Indian tourists could now travel visa-free to Kazakhstan for up to 14 days, he added.
Meanwhile, more than half of hotel bookings in 2023 by Indian travellers were to destinations that impose a tariff of up to 7,000 Indian rupees (US$84) per day, signalling their willingness to pay for premium hotel stays.
South Asian and South-East Asian destinations such as Pokhara, Pattaya and Kuala Lumpur are the top destinations for budget-friendly stay options, according to the MakeMyTrip report. - South China Morning Post
