NEW DELHI (The Straits Times/ANN): Across Delhi, large billboards have come up wooing Indian travellers for a Disney cruise in Singapore, and some people are sitting up and taking notice.
One family saw that bookings had begun for the Disney Adventure, the first Asia-based cruise ship of the Disney Cruise Line. To their disappointment, however, it is due to set sail in December 2025.
“We thought it was starting this year and even made inquiries. But it’s only starting next year,” said Ms Karishma Mohan, 39, a mother of two children under the age of seven. Instead, the family is considering a trip to Japan in March 2025.
Still, they are still keen on the Disney cruise, said Mrs Mohan, a home baker. “The children have seen the advertisements, including on YouTube, so we will explore next year,” she said.
The Mohans are among the growing ranks of middle-class Indian families who go on at least one overseas trip a year.
“As consumers in India express their desire to increase spending on travel, the industry is set for healthy growth in coming years,” said Mr Abhay Prakash Singh, research analyst at Euromonitor International, a global business intelligence, market analysis and consumer insights firm.
While Chinese tourists may still be the leader in global tourism spending, India is seen as the fastest-growing market for outbound tourism, expected to grow at 11 per cent annually for the next decade.
Indian travellers went from 14th position globally on tourism spending in 2019 to eighth place by 2023, when 28.2 million Indians took overseas holidays and spent US$34.2 billion (S$46.3 billion), according to the World Travel and Tourism Council.
In comparison, 87 million Chinese travelled overseas in 2023, spending US$196.5 billion, according to UN tourism data.
The outlook for Indian travellers, however, remains robust. They are expected to become the fourth-largest global travel spenders by 2030, according to a report by Booking.com and McKinsey.
Indians are expected to spend US$55.4 billion by 2034, according to another report by the Federation of Indian Chambers of Commerce and Industry.
Tourism is being fuelled by a growing middle class – expected to double by 2047 from the current 432 million – amid increasing disposable incomes, a stronger desire to travel and expanding aviation links.
The last factor means they can go farther afield.
“Interestingly, prior to the pandemic in the year of 2019, the Asia-Pacific region held the biggest share of outbound spending by Indian travellers,” said Euromonitor’s Mr Singh. “However, in 2023, the Middle East and Africa region dominated, with close to one-third share in overall outbound spending by Indians.”
Ms Sanchari Ganguly, 39, is one who likes the path less travelled.
Her next holiday is a toss-up between Finnish Lapland or a driving trip through Lithuania and Latvia in the Baltics.
“I want a unique experience as well as to discover a new country,” she said.
Ms Ganguly, who left her job to look after her son, added: “I am just trying to figure out if Lapland is doable with a five-year-old. I am doing my research right now.”
Her family spends 10 per cent of their annual income, which translates to around 500,000 rupees (S$7,970) to 550,000 rupees, on their yearly overseas vacation.
Ms Ganguly, whose husband is a banker, had planned to visit Singapore for the Taylor Swift concert earlier in 2024. But when she could not get hold of tickets, the family travelled in June to Azerbaijan and Georgia in Central Asia instead.
“We do one big overseas trip every year, and if it’s very expensive, it’s the only trip that we will do. After all we are a single-income household right now. Otherwise, we do small breaks within India,” she said. “I want my son to travel. Now he asks, ‘Where are we going?’”
Sanchari Ganguly with her husband and son in Georgia in June 2024. -- PHOTO: COURTESY OF SANCHARI GANGULY
‘They want more experiences’
According to travel-banking fintech platform Niyo, 58 countries now offer visa-free or visa-on-arrival facilities for Indian tourists.
It also found that nearly half of Indian travellers made last-minute plans for foreign holidays, landing on countries that offered the easiest visa regime.
While the Indian passport is relatively weak, according to the widely cited Henley Passport Index, an increasing number of countries appear to be wooing Indian tourists with an eye on the growing potential.
The Henley index for 2024, for instance, ranks India 84th in the world, with visa-free access to 58 countries. This puts it behind Guinea, Cote d’Ivoire, Madagascar, Gabon and Burkina Faso.
The index ranks Singapore as the strongest passport, with access to 195 countries.
Still, in 2024, Indian tourists became eligible for online visas for Japan; five-year, multi-entry visas for Dubai; and visas on arrival in Indonesia and Iran, among other destinations.
More countries are expected to follow suit in 2025, with growing aviation links further boosting travel.
In the Middle East, Saudi Arabia launched a “Shaandaar (spectacular in Hindi) Saudi” campaign, hoping to attract 7.5 million Indians over the next decade as it diversifies its economy to include tourism.
Indian carriers such as Air India and Indigo, which are expanding their fleets, have also been rolling out more routes, both within India and overseas.
Air India in 2024 started flights five days a week between Delhi and Hanoi in Vietnam, which in 2023 was the top destination searched for on Google by Indians.
“The advent of low-cost carriers on international routes, offering direct connectivity, has further boosted outbound travel from India,” noted Mr Pushan Sharma, director of research at Crisil Market Intelligence and Analytics.
“Emerging tourism destinations like Tbilisi, Bali, Male, Almaty, Tashkent, Hanoi and Baku are also now more accessible.”
Mr Subhash Goyal, founder chairman of STIC Travel Group, said: “Indian tourists are sought after. And we don’t have backpackers. It is the upper middle class and super rich who are travelling.”
He said that previously, “people used to go sightseeing. Today, they want more experiences. They will participate in some festivals, join in some cultural programmes and experience local cuisine and culture”.
Countries are also trying to woo Indian tourists with curated experiences.
SriLankan Airlines, for example, has introduced a special tour package for Indian visitors called the “Ramayana Trail”, with travel to spots connected to the Hindu epic.
Singapore still a favourite
In 2022, according to India’s Tourism Ministry, the United Arab Emirates (UAE) was the top destination for Indians, followed by Saudi Arabia, the US, Singapore and Britain.
Singapore’s growing appeal as a top destination for Indians still holds, noted Mr Markus Tan, Singapore Tourism Board’s (STB) regional director for India, the Middle East, South Asia and Africa, in an interview with The Straits Times.
Singapore welcomed one million visitors from India in October 2024, an approximate 12 per cent increase from the same period in 2023, said Mr Tan, with expectations that year-end figures would reach 1.17 million to 1.2 million Indian tourists.
According to data by Indian online travel company MakeMyTrip on travel search and booking trends between Dec 16 and 31 for year-end travel in 2024, Singapore ranks as the third-most searched-for destination on the platform, with searches up 11 per cent year on year. It ranks behind UAE and Thailand.
India is Singapore’s third-largest source market for tourism as at Oct 31, after China and Indonesia. STB expects Singapore to remain among India’s top destinations in 2025 as the two countries mark 60 years of bilateral cultural relations.
And Indian tourists are gaining a reputation for being big shoppers.
In 2024, until June, Indian travellers spent $776.5 million, out of which 28 per cent was spent on shopping, followed by 19 per cent on accommodation and 15 per cent on food and beverage. The year before – from January to December 2023 – Indians spent $1.53 billion, out of which 25 per cent was spent on shopping.
“Studies also suggest that a rising number of Indians are shopping for luxury goods when travelling overseas, and Singapore is perfectly positioned to cater to this demand,” said Mr Tan.
“Healthy competition drives us all to innovate and enhance our offerings, and it’s encouraging to see that Singapore remains a top choice for Indian travellers.”
The Indian traveller is only too ready to travel overseas as foreign destinations, in some cases, become as affordable as domestic travel.
Crisil’s recent study revealed that for a couple travelling for five days during the festive season and staying in five-star accommodation, it is cheaper to go to Bangkok in Thailand than to the southern Indian state of Goa, sought after for its beaches.
“The reason being, for the same hotel chain, the tariffs in Goa are almost double those in Bangkok,” said Mr Sharma.
“Price parity between domestic and international destinations is also making foreign travel more accessible to Indians.” - The Straits Times/ANN
