India’s tourism revival appears to be losing steam—again. After a promising rebound following the pandemic, foreign tourist arrivals (FTAs) are struggling to return to pre-Covid levels, raising uncomfortable questions about competitiveness, policy priorities and long-term strategy.
In the first nine months of 2025, foreign tourist arrivals fell 12 percent year-on-year to 61.8 lakh. Full-year numbers are now expected to settle at around 87–88 lakh, far below the 1.09 crore visitors recorded in 2019.
Compare this with a relatively small country like Thailand. Thailand received 2.83 croe foreign tourists between January 1 and November 16, according to the latest update from the Ministry of Tourism and Sports.
The reasons for India's unspectacular performance are familiar. India is still perceived as an expensive destination, infrastructure gaps persist, and safety concerns continue to weigh on traveller sentiment. This year, additional shocks worsened the slowdown. Political instability in Bangladesh—until recently India’s largest source market—has sharply reduced inflows. A terrorist attack in Pahalgam, Jammu and Kashmir, further dented confidence, while widespread flight disruptions caused by IndiGo cancellations during the peak December season added to travellers’ woes.
What makes the trend more worrying is the contrast with Southeast Asia. Cheaper, easier-to-navigate destinations across the region are witnessing a surge in foreign tourists, even as India struggles to keep pace despite its scale and diversity.
There is also a structural weakness that policymakers have failed to address. Nearly 45 percent of India’s foreign tourists come from just three countries—the US, Bangladesh and the UK. When even one of these markets falters, the impact is immediate. Tourism source diversification remains long overdue.
Perhaps the most telling gap lies in policy execution. Despite intense global competition, the tourism ministry has spent only about a third of its allocated budget in recent years. Overseas promotion has been cut to the bone—just ₹3 crore this year—down from ₹300–450 crore annually before the pandemic. In a global industry driven by visibility and branding, India’s retreat from international marketing is proving costly.
(By arrangement with livemint.com)
