International travel spending at 12-month high

Skift Take

Last year, Indians’ spending on overseas travel reached an all-time high. This year’s trend is in line with that of 2023, indicating a sustained interest among Indians in traveling abroad.

Bulbul Dhawan

Indians spent more than $2 billion on international travel in August, the highest amount in the past 12 months, according to the Central Bank of India. Travel accounted for the lion’s share of total overseas spending for the month: about 63% of $3.2 billion.

FY 2023-24 showed the highest spending on international travel ever: $17 billion. This was 25% higher than in 2022–23 and represented 54% of total international spending. In comparison, Indians spent about $7 billion on international travel in the 2019/20 financial year – 37% of total spending abroad.

The initial increase was due to revenge travel in the wake of the pandemic, but sustained spending this year suggests a longer-term trend. Indians are willing to spend more on travel and are emerging as a key market for outbound tourism, according to a report by consultancy McKinsey and Company.

Travel services company Collinson International last month said millennials in India spend an average of $6,031 a year on travel, more than any other generation.

Indian travelers are also spending more money on unique experiences. In a separate report, Collinson said more than 50% of Indian sports travelers spend more than $500 per person on travel to attend sporting events: a significant amount in a country where middle-class people have annual incomes of $6,000 to $36,000.

There will be 3 new airports in India

Prime Minister Narendra Modi inaugurated three new airports in India under the Regional Connectivity Scheme: Rewa in Madhya Pradesh, Ambikapur in Chhattisgarh and Saharanpur in Uttar Pradesh. These airports will soon start operating under this scheme.

Regional Connectivity Scheme (RCS-UDAN) is an initiative aimed at modernizing and developing aviation infrastructure in India to improve connectivity to smaller cities. The scheme also aims to increase the number of scheduled flights to these smaller regions through financial support from the government.

The focus on improving connectivity has led to the emergence of new airlines such as Akasa Air and Fly91. Two more airlines, Alhind Air and Air Kerala, are also in the process of getting permission to begin operations.

These three airports are expected to connect people from nearby regions to the country’s major aviation hubs. Currently, people from some parts of the country have to travel several hours to get to the nearest airport.

Vietnam visa applications increased by 146%

Visa processing platform Atlys has recorded a 146% increase in Vietnam visa applications compared to 2023. The biggest surge in applications was recorded in Bengaluru, Mumbai and Delhi.

The platform noted that individual travelers accounted for 66% of visa applications. Meanwhile, group travel has also increased, especially among Gen Z and millennials. Atlys attributes this increase in demand to good connections, variety of experiences and budgets, as well as luxury travel options.

Sterling opens second resort in Pench

Earlier this year, Sterling expanded its portfolio to 50 resorts. In August, its CEO and managing director Vikram Lalwani said the company plans to add 20 resorts with 1,000 keys over the next 12 to 18 months.

Sterling Holiday Resorts has opened its second resort in Pench. The resort, called Sterling Orient Woods, is located on the Maharashtra side of the Pench Wildlife Sanctuary. The resort features villa-style rooms and large luxury tents.

Stone Wood opens new hotel in Rishikesh

Stone Wood Hotels and Resorts has opened a new hotel in Rishikesh in Uttarakhand. The 37-room hotel marks the company’s entry into the state.

The Goa-headquartered hotel chain started operations in 2017 and operates boutique hotels. The company currently has a portfolio of 16 properties in Maharashtra, Himachal Pradesh, Goa, Karnataka, Rajasthan and Uttarakhand.

Lighthouse tourism has increased by 400% in 10 years

Visits to lighthouses in India have grown by 400% over the past 10 years, Ports, Shipping and Waterways Minister Sarbananda Sonowal said. India recorded 400,000 visitors to its lighthouses in 2014, a number that increased to 1.6 million last fiscal year.

In the first half of the current financial year, more than 900 thousand tourists visited the lighthouses, the minister added. India has invested 600 million Indian rupees ($7.14 million) to build 75 lighthouses across India. This development includes the addition of amenities such as museums, amphitheaters and children’s parks.