Tour operators ask PM Modi for ₹1000 crore allocation to increase foreign tourist arrivals

The Indian Association of Tour Operators (IATO) has asked Prime Minister Narendra Modi to make an immediate budgetary allocation of ₹1,000 crore under the ‘Incredible India’ campaign and form an ‘India Tourism Board’ under the PM’s leadership with the specific objective of increasing foreign tourist arrivals (FTA) in the country.

The IATO is the national apex body of in-bound tour operators and works closely with the Government and other hospitality stakeholders on policy issues related to foreign tourist arrivals.

In a letter to Mr. Modi, the IATO said, going by trends and following discussions with stakeholders, FTA in India has still not touched the 2019 level in the last financial year.

Even though foreign tourist arrivals in India have seen a rebound post-pandemic, they are still below pre-pandemic levels. In 2023, foreign tourist arrivals reached 9.52 million, which was 87.09% of the pre-pandemic level of 10.93 million in 2019. The Ministry of Tourism reports that the 2023 numbers were 47.89% higher than in 2022 (6.44 million), but still significantly lower than the 2019 peak.

Way below potential

The letter dated May 28 said while the importance of in-bound tourism as a precious foreign exchange earner and soft diplomacy tool cannot be over emphasised, India as a destination that offers raw and natural beauty is performing way below its potential.

“These measures are required as the coming season is a few months away, and it can help boost inbound tourism in this financial year,” it said.

Ravi Gosain, Ppresident of IATO, said, “when global trade is facing unprecedented disruptions due to tariff wars and geopolitical shifts, tourism exports remain unaffected. 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, by generating employment, and by helping to balance the forex trade deficit. Yet , regretfully, the country is lagging in its effort to attract foreign tourists.”

He added that to enhance FTA numbers besides the steps suggested above, the steps required are: simplified visa facilitation, expanding the scope of e-Visas, fast-tracking group tourist visas, and exploring visa fee waivers for select countries. Further, we need to incentivise international airlines and air charters to improve air connectivity to key tourism circuits, especially to tier-2 and tier-3 destinations.

Published - June 03, 2025 03:20 am IST