Based on the results of a survey regarding the impact of COVID-19 on travel plans in India, 38 percent of Indian respondents stated that they have no travel plans during October to December 2021 and would decide based on the development of the outbreak.

For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Fact and Figures page.

ABSTRACT India is a tourist paradise. Given the country's rich cultural and historical history, diversity of environment, terrains, and natural beauty spots, tourism in India has significant potential. It is regarded as the most prominent and fastest-growing industry. Aside from being a substantial source of foreign exchange, tourism can generate many jobs. The tourism sector has become extremely unstable due to pandemics and infectious diseases. The COVID-19 froze the tourist industry worldwide, and countries worldwide, including India, proceeded to implement travel restrictions to prevent the virus from spreading. Finally, the tourism industry has suffered significant losses due to the severe epidemic of the new coronavirus. As the disease spread, officials in India imposed travel restrictions, social isolation, and a lockdown, effectively putting the country's tourism industry on hold. Travelers canceled their tours due to the virus concern, and agitation caused the tourist graph to plummet substantially. This study aims to determine the importance of the tourist sector in the Indian economy and assess the impact of COVID-19 on the Indian tourism industry. Keywords: Tourism, Foreign Exchange, COVID-19, Lockdown, Recession

Cite this Article: N. Shanmugasundaram and Velu Suresh Kumar, Impact of Covid -19 On Tourism Industry in India, International Journal of Management (IJM), 11 (3), 2020, pp. 960–966.

In 2020, the occupancy rate in hotels across India was 34.5 percent. The year started with an occupancy of 57 percent. That was significantly lower than in the first quarter of 2019, when nearly 70 percent of rooms were occupied. As a lockdown and travel restrictions were imposed in March that year due to the coronavirus (COVID-19) pandemic, the rates fell to 15 percent in the second quarter. Towards the end of that year, the occupancy slowly increased again. 

 Key indicators in hotel industry 

Besides the occupancy rate other key indicators for the hotel industry included the revenue per available room (RevPAR) and the average daily room rate (ADR). The RevPAR shrunk from 3,700 Indian rupees in the first quarter to 533 rupees in the second quarter of 2020. The ADR decreased, similarly, from 6,400 Indian rupees to 3,400 in the same time period.

 Consumer composition  

The coronavirus (COVID-19) pandemic hit the hotel industry hard with estimated changes in customer structures. One such indication was the shift from business to leisure accounting for a larger share of travel, as well as an even stronger influence of domestic tourists. From the customers’ perspective, a demand for more sustainability as well as a preference for remote places was seen.

In 2023, the share of revenues from domestic travel spending to the total tourism revenue was around 86 percent in India. The share of foreign visitor spending, has increased to 14 percent in 2023. Incredible India’s booming tourism India's tourism offers experiences ranging from cultural and religious sites to wellness tourism and destination weddings. The industry contributes to a significant amount of the country's GDP. Of the international tourist arrivals, the United States of America was the largest source of foreign tourists. It is likely that most of these were non-resident Indians or diaspora. Bangladesh and United Kingdom rounded off the top three FTAs into India. Domestic push and revenge tourism The tourism market in India has been experiencing steady growth in recent years, driven by a combination of factors. Initiatives such as 'Swadesh Darshan' and 'Incredible India' by the government, combined with increasing disposable income, have boosted domestic tourism. Moreover, ‘revenge tourism’ has gained popularity in India, particularly following the COVID-19 pandemic, as people seek to make up for lost travel experiences and show resilience. The majority of tourism revenue comes from domestic tourists, the revenue in this sector was projected to continue increasing from 2024 to 2029, indicating a promising outlook for the segment.

In a survey conducted in 2020 in India, regarding consumers perception on travel during the coronavirus (COVID-19), 83 percent of the respondents found it safe to travel internationally after six months. Almost 74 percent of the respondents found it safe to stay in hotels and resorts during their travel.

GlobalData’s Tourism Source Market Insight – India (2021) report provides a thorough insight into India's domestic, intra-regional and long-haul travel habits. The report looks at the profiles of Indian tourists and summarizes the key reasons why they travel. The report offers an in-depth analysis of traveler flows, spending patterns, main destination markets and current and future opportunities for tourism businesses seeking to tap into the Indian source market. It also assesses the impact of the COVID-19 pandemic on Indian tourism. Read More

Austria Tourist Arrivals: Asia: India data was reported at 4,656.000 Person in Jan 2025. This records a decrease from the previous number of 11,570.000 Person for Dec 2024. Austria Tourist Arrivals: Asia: India data is updated monthly, averaging 1,808.000 Person from Jan 1974 (Median) to Jan 2025, with 613 observations. The data reached an all-time high of 47,348.000 Person in May 2018 and a record low of 15.000 Person in May 2020. Austria Tourist Arrivals: Asia: India data remains active status in CEIC and is reported by Statistics Austria. The data is categorized under Global Database’s Austria – Table AT.Q001: Tourist Arrivals. [COVID-19-IMPACT]

In June and July 2020, 74 percent of surveyed tour operators in India claimed that they had to close their office(s) during the lockdown due to the Covid-19 pandemic. From the remaining tour operators who tried to keep their business somehow running nearly nine percent invested in training of their employees.

India's revenue from international tourism increased from 8.7 bilion U.S. dollars in 2021 to 16.92 billion dollars in 2022. Tourism sector was hit by the coronavirus pandemic in 2020. However, with a share of 9.71 percent in international tourism receipts in Asia-Pacific region, India ranked fifth among the Asia-Pacific countries in 2021.

Canada Tourist Expenditures: Overseas: India data was reported at 77,764.000 CAD th in Dec 2023. This records a decrease from the previous number of 228,079.000 CAD th for Sep 2023. Canada Tourist Expenditures: Overseas: India data is updated quarterly, averaging 52,852.000 CAD th from Mar 2018 (Median) to Dec 2023, with 24 observations. The data reached an all-time high of 321,104.000 CAD th in Jun 2023 and a record low of 3,284.000 CAD th in Jun 2020. Canada Tourist Expenditures: Overseas: India data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.Q022: Visitor Travel Survey: Tourist Expenditures. [COVID-19-IMPACT]

In 2023, the United States was the country worldwide with the highest total contribution of travel and tourism to GDP. That year, the total GDP contribution of travel and tourism in the U.S. amounted to 2.36 trillion U.S. dollars, exceeding pre-pandemic levels. China and Germany followed in the ranking in 2023, with travel and tourism's total contributions to GDP of around 1.3 trillion and 488 billion U.S. dollars, respectively. Overall, the total contribution of travel and tourism to GDP worldwide reached almost 10 trillion U.S. dollars in 2023. What are the most visited countries worldwide? While the U.S. and China reported the highest figures in terms of travel and tourism contribution to GDP in 2023, it was a European destination that led the ranking of countries with the highest number of inbound tourist arrivals worldwide. With 100 million international arrivals in 2023, France was the most visited travel destination in the world that year, ahead of Spain, the United States, and Italy. How many people work in the global travel and tourism sector? After declining sharply due to the impact of COVID-19, the number of travel and tourism jobs worldwide bounced back in 2023, reaching around 330 million, nearly catching up with pre-pandemic levels. That year, China and India were the countries with the highest travel and tourism employment worldwide.

In June and July 2020, 25.7 percent of interviewed hoteliers from 25 tourist destinations in India expressed that they were not sure what will happen in future regarding tourism in India. More than 45 percent in total stated that the tourism in India will hit an all-time low. In contrast, 23.9 percent of hoteliers stated that domestic tourism will increase in the future.

Market Summary Corporate Travel Security Market:

• Global Corporate Travel Security market size 2023 was XX Million. Corporate Travel Security Industry compound annual growth rate (CAGR) will be XX% from 2024 till 2031. • A rise in corporate travel due to globalization increases the demand for corporate travel Security Market and the efficiency of corporate travel security systems is increased by using AI-driven technologies, which gives an opportunity to propel market expansion. • The COVID-19 had a negative impact on market as there were strict regulations, people were not allowed to travel which affected the corporate travel market and eventually the corporate travel security market. • Rise in the importance of corporate travel safety, a lot of companies are coming up with new services for the safety of employees. Along, with this joint-ventures and collaborations are also taking place. • North America is the dominant region is this market because of its robust economy and wide range of industries, it is a major hub for business travel. Market Dynamics of Corporate Travel Security Market:

Key Drivers:

A rise in corporate travel due to globalization increases the demand for corporate travel Security Market

In the context of worldwide corporate expansion, in-person meetings, discussions, and cooperation become increasingly important. Establishing connections, having direct conversations, and looking into fresh business prospects are all made easier by business travel. Corporate business travel can open up for business expansion by reaching new markets, establishing connections with a larger pool of potential customers, or building brand recognition and reputation. Executives and staff may have the opportunity to travel for business purposes in a variety of ways, including attending conferences, meetings, industry networking events, and fairs. Alternatively, a trip could benefit from educational possibilities including workshops, seminars, and training sessions. Retreats and escorted excursions can provide worthwhile opportunities for team-building in novel settings that foster diverse viewpoints and solidify collaborative connections. Individuals reap numerous advantages from business travel, such as interacting with coworkers, advancing their careers through various experiences, building industry networks, and exploring new places. Security and safety for business travelers are of utmost importance when travelling for business. Many personnel, such as sales representatives, client service managers, consultants, conference and events workers, rely on business travel for logistical reasons. For Instance, The Global Business Travel Association (GBTA) projects that business travel in India would increase by 18.3% in 2024 due to growing corporate earnings and foreign direct investment. It is anticipated that Indian businesses will have spent $32.3 billion on events, conferences, business travel, and meetings in 2023. India's spending on business travel increased by 24.7% last year, but it fell short of other major Asia Pacific (APAC) nations. (Source:https://www.thehindubusinessline.com/economy/business-travel-in-india-gains-momentum-to-reach-pre-covid-level-in-2025-gbta-outlook/article67891890.ece) Hence, as the corporates travel, their safety becomes of utmost importance. For example, the arranging the necessary legal documents, proper hotel bookings, pre-cab booking from airports, emergency numbers, medical support, food and hygienic standards should be maintained for the employees for the smooth functioning of the work related to their businesses.

Key Opportunity:

The efficiency of corporate travel security systems is increased by using AI-driven technologies, which gives an opportunity to propel market expansion

AI algorithms can enable to evaluate travel habits and preferences and generate intelligent suggestions for travel, lodging, and transportation. This saves time by letting one make well-informed decisions rather than wasting it researching prices and options. By evaluating information from a variety of sources, such as travel alerts and other real-time data that can help guarantee travellers' safety and security, artificial intelligence (AI) can also assist businesses in evaluating possible dangers related to business travel. Wh...

As of September 2020, 78 percent of respondents to a survey by EY and ICF International stated that their companies had imposed travel restrictions for business travel due to the pandemic. The respondents were chosen from industries that involve frequent domestic business travel, such as auditing, consulting, or industrial manufacturing. That means on the downside that 22 percent of these companies continued to send their employees on business travel.

Before the pandemic broke out, the business travel segment was estimated to make up a volume of 15 to 20 percent of the domestic Indian aviation sector.

Canada Tourist Expenditures: Overseas: India: Others data was reported at 46.000 CAD th in Dec 2023. This records a decrease from the previous number of 582.000 CAD th for Sep 2023. Canada Tourist Expenditures: Overseas: India: Others data is updated quarterly, averaging 613.500 CAD th from Mar 2018 (Median) to Dec 2023, with 24 observations. The data reached an all-time high of 7,945.000 CAD th in Sep 2019 and a record low of 46.000 CAD th in Dec 2023. Canada Tourist Expenditures: Overseas: India: Others data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.Q022: Visitor Travel Survey: Tourist Expenditures. [COVID-19-IMPACT]

According to Cognitive Market Research, the global Travel and Tourism Spending market size is USD 14845295.6 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 5938118.24 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 4453588.68 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 3414417.99 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 742264.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 296905.91 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The Couple Traveler held the highest Travel and Tourism Spending market revenue share in 2024.

Market Dynamics of Travel and Tourism Spending Market

Key Drivers of Travel and Tourism Spending Market

Growing Disposable Income and Middle-Class Expansion to Increase the Demand Globally

The Travel and Tourism Spending Market is being significantly driven by the rise in disposable income and the expanding middle class in emerging economies. As more people enter the middle-income bracket, there is a noticeable shift in spending patterns towards leisure activities, including travel and tourism. This trend is particularly evident in countries like China, India, Brazil, and several Southeast Asian nations, where rapid economic growth has lifted millions out of poverty and into the middle class. The increasing affordability of travel, coupled with aspirations for new experiences and exposure to different cultures, is fueling the demand for tourism services and experiences.

Technological Advancements and Digitalization to Propel Market Growth

Another key driver for the Travel and Tourism Spending Market is the rapid advancement of technology and digitalization. The travel industry has undergone a profound transformation with the advent of the internet, smartphones, and various digital platforms. These technologies have made travel planning more accessible, convenient, and personalized, influencing consumer behavior and preferences. Online booking platforms, travel apps, and social media have revolutionized how people research, book, and share their travel experiences. Additionally, technologies such as virtual reality (VR) and augmented reality (AR) are enhancing the travel experience by offering immersive previews of destinations and attractions, further driving the demand for travel and tourism services.

Restraint Factors Of Travel and Tourism Spending Market

Economic Uncertainty and Exchange Rate Volatility to Limit the Sales

One of the key restraints affecting the Travel and Tourism Spending Market is economic uncertainty and exchange rate volatility. Fluctuations in exchange rates can affect the cost of travel, particularly for international tourists. A strong currency in the destination country can make travel more expensive for foreign visitors, leading to a decline in tourism spending. Similarly, economic downturns or recessions can result in reduced disposable income and consumer confidence, leading individuals to cut back on discretionary spending, including travel and tourism. Economic instability in key source markets can also impact outbound travel, affecting the overall tourism industry.

Impact of Covid-19 on the Travel and Tourism Spending Market

The Covid-19 pandemic has had a profound impact on the Travel and Tourism Spending Market, causing unprecedented disruptions worldwide. Travel restrictions, border closures, and lockdown measures implemented to curb the spread of the virus have led to a significant decline in tourism activity. The closure of hotels, restaurants, and attractions has resulted in massive revenue losses for the tourism industry. Travelers have canceled or postponed trips, leading to a sharp decline in tourist arrivals and spending. The aviation industry has been particularly hard hit, with airlines facing...

Canada Tourist Expenditures: Overseas: India: Accommodation data was reported at 26,644.000 CAD th in Dec 2023. This records a decrease from the previous number of 94,833.000 CAD th for Sep 2023. Canada Tourist Expenditures: Overseas: India: Accommodation data is updated quarterly, averaging 15,142.000 CAD th from Mar 2018 (Median) to Dec 2023, with 24 observations. The data reached an all-time high of 106,488.000 CAD th in Jun 2023 and a record low of 716.000 CAD th in Jun 2020. Canada Tourist Expenditures: Overseas: India: Accommodation data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.Q022: Visitor Travel Survey: Tourist Expenditures. [COVID-19-IMPACT]

Canada Tourist Expenditures: Overseas: India: Food & Beverage data was reported at 24,003.000 CAD th in Dec 2023. This records a decrease from the previous number of 51,914.000 CAD th for Sep 2023. Canada Tourist Expenditures: Overseas: India: Food & Beverage data is updated quarterly, averaging 15,635.000 CAD th from Mar 2018 (Median) to Dec 2023, with 24 observations. The data reached an all-time high of 86,027.000 CAD th in Jun 2023 and a record low of 1,913.000 CAD th in Jun 2020. Canada Tourist Expenditures: Overseas: India: Food & Beverage data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.Q022: Visitor Travel Survey: Tourist Expenditures. [COVID-19-IMPACT]

According to a survey among Indians in March 2020, about 34 percent thought incoming travel should be limited for the month following the survey period. This included the opinion that travelers into India should only be allowed if they had a "coronavirus free" certificate from the country of departure or boarding port. With the outbreak of the coronavirus (COVID-19) in late 2019, countries across the world have implemented entry restrictions, quarantine measures and travel advisories to help contain the virus. As of March 13, 2020, the Indian government suspended existing visas with exceptions until April 15, 2020. The country went into lockdown on March 25, the largest in the world, restricting 1.3 billion people.

For further information about the coronavirus (COVID-19) pandemic, please visit our dedicated Fact and Figures page.

Canada Tourist Expenditures: Overseas: India: Clothes & Gifts data was reported at 16,895.000 CAD th in Dec 2023. This records a decrease from the previous number of 38,920.000 CAD th for Sep 2023. Canada Tourist Expenditures: Overseas: India: Clothes & Gifts data is updated quarterly, averaging 6,127.500 CAD th from Mar 2018 (Median) to Dec 2023, with 24 observations. The data reached an all-time high of 48,355.000 CAD th in Jun 2023 and a record low of 99.000 CAD th in Jun 2020. Canada Tourist Expenditures: Overseas: India: Clothes & Gifts data remains active status in CEIC and is reported by Statistics Canada. The data is categorized under Global Database’s Canada – Table CA.Q022: Visitor Travel Survey: Tourist Expenditures. [COVID-19-IMPACT]