Arabian Travel Market Highlights India’s Outbound Tourism, 30% Travelers Visit Middle East Destinations

Thursday, February 22, 2024

Projected to reach an annual value of $143.5 billion by the decade’s end, the Indian outbound market is set to be a focal point at the Arabian Travel Market (ATM) 2024. This event, marking its 31st year, will be hosted at the Dubai World Trade Centre (DWTC) from May 6 to May 9. Insights from a joint study by booking.com and McKinsey reveal that 70% of Indian international travelers prefer destinations within close proximity, with a third opting for places in the Middle East. The United Arab Emirates emerges as the preferred choice in this region, closely followed by Saudi Arabia. Data from the Dubai Economy and Tourism (DET) highlights India as Dubai’s leading source of tourism, with 1.9 million visitors recorded in the initial ten months of 2023. Meanwhile, Saudi Arabia has set a target to attract 7.5 million visitors by 2030.

The report also underscores the vast potential for growth within India’s outbound tourism sector, comparing the pre-pandemic figure of 26.9 million international trips in 2019 to an anticipated surge to 50 million by 2030.

Danielle Curtis, Exhibition Director ME, Arabian Travel Market, said: “The boom in outbound travel from India is being driven primarily by the growing middle class. In 2020, only 37 million households had annual income between $10,000 and up to $35,000, but due to India’s rapid economic growth, by 2030 that number will rise significantly to 177 million households.

“More specifically, households earning over $35,000 per annum will also increase from two million in 2020 to 13 million by 2030, a sixfold increase!

“And with India’s median age being just 28 years, it’s little wonder that the UNWTO recognises India as one of the top three fastest-growing outbound markets in the world. By 2030, India’s total travel expenditure will be valued at $410 billion.

“Putting that into perspective, prior to Covid, in 2019, it was worth just $150 billion, an increase of 173%.”

Moreover, the excitement among Middle Eastern destinations is not solely due to the sheer number of Indian tourists. A survey conducted by Acko Insurance revealed that a significant portion of Indian travelers are prepared to allocate as much as $7,000 for overseas journeys.

An additional factor previously mentioned is the geographical closeness of the Gulf countries. Notably, Dubai stands out as the favored urban destination for Indian tourists, being merely a three-hour flight away from Mumbai. Furthermore, the expansion of connectivity and the availability of economical airfare from secondary cities are contributing to the growing interest, especially with the introduction of direct flights by budget airlines.

And with over 8.5 million Indian expatriates currently working in the GCC, business travel and bleisure, will undoubtedly underpin this growth,” added Curtis.

ATM 2024 is set to welcome an unprecedented number of travel industry professionals from both the outbound and inbound sectors to India. The event will offer ample opportunities for networking, establishing new business contacts, and gaining insights into the Indian travel market through various features, including a special summit focused on India.

The event will host a specific summit on the first day, titled “Unlocking the True Potential of Inbound Indian Travellers,” scheduled for Monday, May 6th, from 14:45 to 15:25. This summit, organized in partnership with VIDEC Consultants Private Limited, will be held on the ATM Global Stage and aims to delve into India’s significance as a pivotal tourism source market, along with examining current and prospective opportunities.

Last year, ATM featured prominent Indian exhibitors for the first time, including Air India, alongside tourism boards and departments from Goa, Madhya Pradesh, Uttar Pradesh, Karnataka, Odisha, and Puducherry. The upcoming show anticipates a 20% increase in Indian exhibitors, with TBO.com, Taj Hotels, Rezlive, and Rategain already confirmed, alongside new participants such as Verteil Technologies, Tulah Clinical Wellness, ZentrumHub, and The Paul Resorts & Hotels.

Reflecting its theme, “Empowering Innovation: Transforming Travel Through Entrepreneurship,” the 31st edition of ATM will continue to bring together a diverse group of stakeholders from the Middle East and elsewhere.

The 2024 edition, in collaboration with the Dubai World Trade Centre, boasts strategic partnerships with several key organizations, including Dubai’s Department of Economy and Tourism as the Destination Partner, Emirates as the Official Airline Partner, IHG Hotels & Resorts as the Official Hotel Partner, Al Rais Travel as the Official DMC Partner, and Rotana Hotels & Resorts as the Registration Sponsor.

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