Indian travelers spent $34.2 billion on travel abroad in 2023, according to the World Travel and Tourism Council.
But the current level of Indian travel is “It pales in comparison to what's to come,” said Alan Watts, Hilton's president for Asia Pacific.Squawk Asia Fund” Monday.
“India's story is before us,” he said. “India’s foreign travel will be the story of the next decade.”
By 2034, Indian travelers' outbound spending is expected to double to $76.8 billion, according to the World Travel and Tourism Council's 2024 Economic Impact Report – which will make the country the seventh-largest travel spender in the world, up from 12th in Year 2019. 2023.
“When you think about India, it has characteristics of China, which is the second largest housing market in the world,” Watts said. It has “1.4 billion people, a young population, and historically strong GDP growth. But the infrastructure… has only just been built in India.”
India is investing heavily in infrastructure to build and improve its roads, high-speed trains and airports, in a build-up that aims to double its economy to $7 trillion by 2030. Transforming India into a developed country by 2047.
India currently has the third-largest number of air passengers in the world, after the United States and China, according to Airports Council International. It is expected to add 960 million new passengers by 2042.
On Monday, Air India, the country's flag carrier, confirmed an order for 100 Airbus aircraft – 10 A350s and 90 A320neo aircraft – in addition to a then-record order for 470 Airbus and Boeing aircraft in 2023.
Next Record order for 500 Airbus aircraft By Indian low-cost carrier Indigo in 2023, which is scheduled for delivery between 2030 and 2035, according to Indigo.
Regarding whether India will be the “new China” in the global travel industry, Watts said, “It certainly seems to have the right characteristics for it, which is why the industry has been so optimistic.”
He also pointed out that outbound travel is growing faster in India than in China.
Hotel expansion
Global hospitality companies are also preparing to welcome a wave of new travellers, with millions expected to move into India's middle class in the coming years.
On November 19, Hilton announced a deal to open 150 Spark by Hilton hotels in India, a “premium economy” brand launching in the US in 2023.
Discussing the possibility of expanding branded hotels in India, Watts emphasized that India has almost the same number of branded hotels as Las Vegas.
But it is now receiving more attention from outside investors.
“What's different about India this time is its foreign direct investment. In fact, there are some big capital players in India, so that's new,” Watts said.
Marriott, IHG, Hyatt and Wyndham are also moving to capture the growing interest in travel in India, with Marriott announcing its plans 250 hotels in the Indian subcontinent by 2025.
Flirting with Indian travelers
As outbound travel from China continues to remain silent, more countries are courting Indian travelers with new visa-free agreements. Direct flights And advertising campaigns.
Australia “Hawzat for vacationThe '' campaign, which was launched in November during the Australia-India cricket Test series, is expected to reach 50 million people, according to the Commerce and Tourism Minister.
The number of Indian travelers to Australia is expected to double by 2028, according to a press release announcing the launch of the campaign.
