India’s outbound tourism market is projected to reach USD55bn by 2034

Reflecting the country’s growing influence in international travel and hospitality, India’s inbound and outbound offerings will be in focus during the forthcoming edition of Arabian Travel Market (ATM), which takes place from 28 April to 1 May at the Dubai World Trade Centre.

According to Future Market Insights, India's outbound tourism market is projected to reach USD55 billion by 2034, expanding at a Compound Annual Growth Rate (CAGR) of 11.4% over the next decade. This growth is primarily driven by increasing demand for international travel, particularly among millennials seeking diverse experiences abroad. Furthermore, research from STR suggests that India has increasingly become one of the most targeted source markets globally, with many destinations intensifying their efforts to attract Indian travellers.

In 2024, Dubai welcomed 3.14 million overnight visitors from South Asia, with India factoring predominantly, significantly contributing to the overall 18.72 million international visitors who made a trip to the city, representing a nine per cent year-on-year increase.

STR’s findings also reveal that hotel supply in India has increased by a CAGR of just over 3% in the past decade, with 114,000 new rooms added since 2014. Developer interest remains high, with hotel occupancy rates increasing in eight of the last ten years, reflecting sustained demand. 

This will be underscored by the country’s participation at ATM this year, which is expected to grow 41% year on year, driven by a strong presence from exhibitors such as the India Ministry of Tourism, airline carriers Air India and Air India Express, and an expanding representation from the regional tourism boards of Goa, Karnataka, Madhya Pradesh and Uttar Pradesh.

Danielle Curtis, exhibition director ME, Arabian Travel Market, said: “India’s larger showcase at ATM not only highlights the country’s rich and diverse travel offerings, from luxury experiences and wellness retreats to cultural destinations and adventure tourism, but serves as a crucial platform for global travel exchange, enabling the international travel industry to tap into this lucrative market.”