Domestic tourism cushions India as West Asia crisis, high airfares hit international travel

India’s domestic tourism market is emerging as a key cushion for the travel and tourism sector as the West Asia crisis, currency fluctuations, visa challenges and a sharp rise in Aviation Turbine Fuel (ATF) push up international airfares and reshape traveller preferences, industry officials said.

“Geopolitical uncertainties, currency fluctuations and high international airfares are reshaping travel choices,” Burjis Mehta, President, Bombay-Skal International, a part of the global network of travel and tourism professionals, said on the sidelines of TTF (Travel & Tourism Fair), Mumbai 2026, organised by Fairfest Media.

With travellers becoming increasingly cautious about West Asia, he said destinations across the Far East, including Vietnam, Laos, Cambodia, Thailand, Singapore, South Korea and Japan, are witnessing increased interest.

Within India, high airfares are prompting price-sensitive travellers to choose rail and road travel, shorter holidays and destinations closer to home, further supporting domestic tourism, he added.

Rajesh Poddar, Chairman-Western Region, Travel Agents Association of India (TAAI), said the travel trade was witnessing strong momentum in both domestic and Far East markets, with geopolitical conflicts and visa challenges in the U.S. and European Union influencing travel decisions.

India recorded more than 4.3 billion domestic tourist visits in 2025, while 32.83 million Indian nationals travelled abroad during the year, marking a 6.3% year-on-year increase, he said.

Travellers are also increasingly looking for offbeat and lesser-known destinations, while affordable and hassle-free visa regimes are creating opportunities across segments, including luxury travel, he said. Greater government support through easier visa processes, tourist-friendly infrastructure and dedicated tourist police could further accelerate the sector’s growth, Poddar added.

Outbound, MICE, luxury and experiential travel are among the fastest-growing segments, with several businesses reporting double-digit growth, according to Jay Kantawala, Chairman-Western Chapter, Travel Agents Federation of India (TAFI).

“Travellers are now increasingly seeking premium, personalised and immersive experiences,” Kantawala said, adding that the shift was transforming the role of travel agents from itinerary providers into experience designers.

Sanjiv Agarwal, Chairman and CEO of Fairfest Media, the organiser of TTF Mumbai 2026, said India’s response to uncertainty in global travel markets had been stronger domestic travel.

India recorded close to 3 billion domestic tourist visits in 2024, while domestic visitor spending has been a major driver of the sector’s post-pandemic recovery, according to the World Travel & Tourism Council.

Industry projections estimate India’s domestic tourism market could reach around ₹35 trillion by 2029, with surveys also indicating that a majority of Indian travellers intend to increase their travel spending.