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India Sees Potential for Tourism Growth with Easier Travel to the U.S.

Tuesday, August 27, 2024

India

India and the U.S. are witnessing a steady increase in travel between the two nations, but there is still untapped potential to further enhance tourism. Key solutions proposed at the first Indo-U.S. Tourism and Hospitality Summit, held by the Indo-American Chamber of Commerce in Delhi, include the implementation of faster visa processes and the expansion of direct flight options.

Challenges and Opportunities in India-U.S. Travel

Suman Billa, Additional Secretary with India’s Tourism Ministry, highlighted that a significant portion of India-U.S. air travel currently involves stopovers in third countries like those in the Middle East or Europe. He emphasized that increasing the number of direct flights between India and the U.S. would not only make travel more cost-effective but also improve the convenience for passengers. Despite the benefits, the expansion of direct flight routes remains limited.

Presently, Air India, American Airlines, and United Airlines are the primary carriers offering non-stop flights between the two countries. However, there is room for more routes and frequency to meet the growing demand.

Visa Processing Improvements

While obtaining a U.S. visa is valid for 10 years, the application process remains cumbersome for many travelers. Nevertheless, progress has been made. The U.S. Embassy in India has successfully reduced visa appointment wait times by 75% over the past year, despite a 60% increase in applications. This improvement, achieved through better processes and staffing, has brought down the average wait time for visitor visas from 1,000 days to 250 days.

Eric Garcetti, U.S. Ambassador to India, reaffirmed the commitment to addressing the visa backlog, noting that President Joe Biden himself prioritized this issue. At the Indo-American Chamber of Commerce event, Jonathan M Heimer, Minister Counselor for Commercial Affairs at the U.S. Commercial Service, reported that the U.S. has processed 60% more visas in the past year with similar resources, issuing over 1.1 million visas—a record number.

Short-Term Visa Proposals

Rajesh Magow, co-founder and group CEO of MakeMyTrip, suggested the introduction of short-term visas for tourists, a practice already adopted by several other countries. This innovation could further streamline the process for tourists looking to visit the U.S. for shorter stays.

India’s Growing Presence in U.S. Tourism

Data from the U.S. National Travel and Tourism Office (NTTO) indicates that between January and May 2024, India became the second-largest international source market for U.S. tourism, excluding Canada and Mexico. In 2023, 1.7 million Indian tourists visited the U.S., with projections estimating this number could reach 2 million by 2027.

Despite this growth, Billa remarked that India has not fully capitalized on its tourism potential. While travel between the two countries is increasing, there is still considerable opportunity for expansion.

Promoting India as a Destination

At the Skift India Summit, Garcetti pointed out the disparity in travel interest between the two nations. While many Indians are eager to visit the U.S., the reverse is less common. He noted that Americans are less familiar with India as a tourist destination, though there is a growing curiosity that could lead to more balanced travel between the countries.

Indian Gen-Z Travelers and Technology

The preferences of Indian Gen-Z travelers are shaping the future of travel. According to Booking.com, 70% of surveyed Gen-Z travelers in India are comfortable incorporating technology into their travel plans, including using AI for itinerary suggestions and exploring less-traveled destinations. These travelers prioritize value for money, often seeking discounts and unique experiences, such as skydiving or hot air ballooning.

Hong Kong’s Focus on Indian Travelers

Hong Kong is targeting Indian travelers, who are among the highest spenders in the region, averaging INR 100,000 ($1,200) per person. In the first half of 2024, 181,000 Indians visited Hong Kong, with the city aiming to attract 560,000 Indian tourists by year-end. The Hong Kong Tourism Board is focusing on Gen-Z and Millennials, as well as the MICE (meetings, incentives, conferences, and exhibitions) segment, to drive this growth.

Japan Airlines Expands Flights to Bangalore

Japan Airlines is increasing the frequency of flights between Tokyo and Bangalore from three to five weekly flights starting in October, responding to rising demand. Bangalore remains the only airport in South India with direct connectivity to Tokyo, with Japan Airlines being the sole operator on this route.

Thomas Cook’s New Customer Service App

Thomas Cook India and SOTC Travel have launched a new customer self-service (CSS) holiday app, offering a comprehensive post-booking experience. The app provides customers with access to their sightseeing schedules, hotel reservations, flight tickets, insurance details, visa status, and weather updates. This launch follows the company’s introduction of an AI-powered platform to streamline holiday planning and bookings.

Air India Adds Flights for Festival Season

In response to increased demand during the upcoming Durga Puja festivities, Air India has announced additional flights from Delhi, Bangalore, Mumbai, and Hyderabad to Kolkata. These additional flights will continue through October, catering to the surge in travel during the festival season.

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