According to the World Travel and Tourism Council, Indian travelers spent $34.2 billion on international travel in 2023.
However, the current level of travel to India is Alan Watts, Hilton’s Asia Pacific president, told Squawk Box Asia on Monday that it was “a pittance” compared to what’s to come.
“The story of India is before us,” he said. “Indian outbound will be the story of the next decade.”
According to the World Travel and Tourism Council’s Economic Impact 2024 Report, by 2034, the amount spent by Indian travelers abroad is expected to more than double to $76.8 billion, which would put the country in 12th place. It is expected to become the 7th largest travel spending country in the world. 2023.
“If you think about India, it has the characteristics of China, which is the second largest lodging market in the world,” Watts said. “We have a population of 1.4 billion, a young population, and historically high GDP growth rates. But the infrastructure…is only now being built in India.”
India is investing heavily in infrastructure to build and improve roads, high-speed rail, and airports to double its economy to $7 trillion by 2030 and transform India into a developed country by 2047. There is.
According to the Airports Council International, India currently has the third largest number of air passengers in the world after the United States and China. It is predicted that there will be 960 million new passengers by 2042.
On Monday, the country’s flag carrier Air India said it had ordered 100 Airbus planes (10 A350s and 90 A320neo jets) in 2023, in addition to a then-record 470 Airbus and Boeing aircraft orders. I confirmed the order.
This follows Indian low-cost carrier IndiGo’s record order for 500 Airbus aircraft in 2023, with deliveries expected between 2030 and 2035, IndiGo said.
On whether India will become the “new China” of the global travel industry, Watts said, “India certainly seems to have the right characteristics and that’s why the industry is so bullish.” Ta.
He also pointed out that international travel is increasing faster in India than in China.
hotel expansion
Global hospitality companies are also bracing for a surge in new travelers as millions of people are expected to move into India’s middle class.
On November 19, Hilton announced an agreement to open 150 Spark by Hilton hotels in India in 2023, under its premium economy brand launched in the United States.
While discussing the potential for branded hotel expansion in India, Watts acknowledged that India has almost as many branded hotels as Las Vegas.
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However, it is now receiving increasing attention from outside investors.
“What’s different for India this time is foreign direct investment. In fact, some of the big capital is in India, which is new,” Watts said.
Marriott, IHG, Hyatt and Wyndham are also moving to tap into the growing interest in travel in India, with Marriott announcing plans to open 250 hotels in the subcontinent by 2025.
Courting Indian travelers
As international travel from China remains curtailed, more countries are luring Indian travelers through new visa-free agreements, direct flights and advertising campaigns.
Australia’s “How’s Your Holiday?” campaign will launch in November during the Australia-India Test Cricket Series and is expected to reach 50 million people, according to Australia and India’s Minister of Trade and Tourism.
The number of Indian travelers to Australia is expected to double by 2028, according to a press release announcing the launch of the campaign.
