Indian tourists, a new ‘gold mine’ for tourism

The number of Indians traveling abroad topped 27 million in 2019, double the annual number a decade earlier.

According to British magazine The Economist, Indian tourists’ spending in 2023 was worth US$33 billion, triple the figure in the previous decade and forecast to reach $45 billion by 2025.

Sudhir Upadhyay, CEO of TravB2B, which provides Asian travel services to more than 7,000 travel agents in India, tells VnExpress: “This is a large potential source of customers with high spending power. It is no surprise that countries are striving to attract Indian tourists.”

India is the “most sought-after source market right now” and has overtaken China as the most populous country, he says, predicting India’s international tourism market to grow to five or six times its current size in the next eight to 10 years.

China is the world’s largest source of tourists, and countries have adjusted their policies to attract them, but in Middle Eastern and Southeast Asian countries, Indian tourists are giving them a run for their money.

Thailand and Malaysia have already waived visas for Indian citizens, and some Middle Eastern countries have recruited India movie stars as brand ambassadors.

A decade ago India used to send a million visitors to Thailand a year, a figure breached in just the first half of 2024, with many being first-time travelers.

Vietnam too has seen remarkable growth in the number of Indian tourists in recent years, and India is one of its fastest growing tourism markets along with Cambodia.

According to the Vietnam National Tourism Administration, there were 392,000 Indian visitors last year, a 230% increase from 2019.

In the first half of this year over 231,000 visitors from India traveled to Vietnam, a 165% increase from the same period last year.

Since Aug. 26 leading tour operator Vietravel has been serving a group of 4,500 tourists from Indian company Sun Pharmaceuticals.

They arrived in Vietnam in six groups and are expected to travel around Hanoi, Ha Long and Ninh Binh over nearly two weeks.

Industry insiders acknowledge that the Indian tourist market was not fully leveraged before Covid due to limited direct flights while travel agencies in Vietnam mainly focus on traditional markets such as China, South Korea, the U.S., Australia, and Europe.

Nguyen Nguyet Van Khanh, marketing director of Vietravel, says Indian tourists now account for 16% of his company’s international clientele.

To better serve them, it is imperative for tourism operators to meet their unique cultural and religious needs, he says.

Vietravel’s group of 4,500 tourists has special food requirements to suit their customs and beliefs, including religious, he says.

They also asked for at least three tour guides, all proficient in Hindi, for each group of 30-35 to ensure an optimal experience, he says.

Information at tourist attractions, usually in English and Vietnamese, needs to be translated into Hindi, he says.

“However, Vietnamese tourism industry currently lacks sufficient tour guides fluent in Hindi.”

Popular Vietnamese destinations for Indian tourists include Hanoi, Ha Long, Ninh Binh, Da Nang, and Hoi An, with their preferences leaning towards cultural sites and beach resorts.

Upadhyay says a streamlined visa process is crucial to attract Indian tourists, who often do not plan their travel too far in advance.

“Countries with visa-free entry or easy visa processes will naturally attract more Indian travelers.”

Vietnam offers three-month visas to Indian nationals.

Upadhyay also said cuisine also plays a vital role as Indian tourists are highly particular about food.

Many Indians are not just vegetarian; they also often do not eat food cooked in vessels used for meat or seafood. And then there are religious factors such as Muslims not eating pork and non-halal food, and Hindus and Buddhists avoiding beef.

Careful planning of food arrangements is necessary when handling Indian groups though independent travelers are often more open to trying local cuisine.

Upadhyay says TravB2B primarily serves clients who opt for three-star (20-25%), four-star (40-50%) and five-star (15-20%) accommodation, indicating Indians’ strong spending capacity though low-spending customers are easier to serve due to less frequent schedule changes.

The arrival of 4,500 high-spending Indian visitors presents a significant opportunity for Vietnam’s tourism industry, enhancing the country’s image as a premier destination.

The group had initially planned to visit Singapore but chose Vietnam instead, underscoring the country’s growing appeal in what is a competitive tourism landscape, insiders said.