India’s domestic travel boom is a great story. But let’s not get so carried away celebrating Indians traveling around India that we forget why we still need foreign tourists to come here.
The recent EIH earnings call, parent company behind Oberoi and Trident, is a useful reality check. International arrivals at its hotels fell during the quarter as travel was disrupted, forcing the company to spend more to drum up domestic demand. It worked well enough to cushion the blow, but it did not exactly replace the overseas guest.
And that matters because international visitors tend to spend more, stay longer and spread their money across much more than a hotel room, from airlines, restaurants, shopping, transport, experiences and everything in between.
None of this takes away from the strength of India’s domestic market. Indian travelers have become the hospitality industry’s very useful shock absorber, helping hotels keep growing when international demand gets wobbly.
But a shock absorber is not the engine.
As India adds hotels, develops destinations and talks seriously about becoming a global tourism powerhouse, attracting international travelers has to remain a priority. Domestic tourism can keep the lights on, but inbound tourism is what can help switch them on across the wider economy.
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