IATO Seeks Government Support to Revive Inbound Tourism

The Indian Association of Tour Operators (IATO) has raised concern over the slow recovery of Foreign Tourist Arrivals (FTAs), which still remain below pre-pandemic 2019 levels. After reviewing current trends and discussions with stakeholders, IATO has assessed that despite India’s rich cultural and natural appeal, inbound tourism is underperforming.

To address this, IATO has written to the Prime Minister, urging immediate budgetary support and strategic action. It has proposed a Rs 1000 crore allocation under the Incredible India campaign to significantly ramp up global marketing and visibility. Additionally, IATO recommends the formation of an India Tourism Board, chaired by the PM, with the dedicated goal of increasing FTAs and making India a top global travel destination.

 Says Ravi Gosain, President IATO, “When global trade is facing unprecedented disruptions due to tariff wars and geopolitical shifts, tourism exports remain unaffected by such constraints. Unlike goods, India's tourism export (i.e. foreign tourists spending in India), which is non-tariff based, brings direct foreign exchange earnings into the country. This positions inbound tourism as a stable, sustainable, and immediate contributor to India’s current account with valuable foreign exchange, employment generation and balances forex trade deficit. Yet , regretfully the country is lagging in its effort to attract foreign tourists”. 

“To enhance FTA numbers besides the steps suggested above. We need simplified Visa facilitation, expanding the scope of e-Visas, fast-tracking group tourist visas and exploring Visa fees waivers for select countries. Further we need to Incentivise international airlines and air charters to improve air connectivity to key tourism circuits, especially in tier-2 and tier-3 destination”, according to Gosain 

With the upcoming tourist season just months away, IATO believes immediate action could salvage the current financial year. It stresses that boosting tourism will not only generate foreign exchange and employment, but also enhance India’s soft power globally.