Global Investor

Incredible India

Vishal Sunil | Updated on September 07, 2014


Tourist arrival growth higher than in Australia

India continues to charm tourists, with the rate of growth in arrivals trumping the growth seen by Malaysia and Australia in the last few years. The number of monthly tourist arrivals in India has been increasing by 7 per cent year-on-year on average since 2009.

Singapore and Malaysia have seen a dip in arrivals growth, hampered by the disappearance of flight MH370 and China’s new tourism law, which has caused the number of short-term tourists from China to drop by 30 per cent.

In 2013, the average foreign monthly arrivals in India grew by a significant 6.9 per cent. This was aided by the beneficial exchange rate foreigners enjoyed due to the weak rupee.

There was a dip in 2012, due to a higher base in 2011. The year 2011 saw an unusual spike due to 100% foreign direct investment being approved in the hotel sector and a successful Incredible India ad campaign.

Even as India tries to attract more foreigners, it’s clear that perceived law and order problems could have an undesirable effect.

For example, the Nirbhaya incident in late 2012 led to an abrupt decline in monthly tourist arrival growth.

Such widely publicised issues can “cost us millions of dollars in terms of lower tourism”, as stated by Defence and Finance Minister Arun Jaitley.

The number of foreign visitors arriving every month grew by only 2.2 per cent year-on-year on average in the first six months of 2013.

Published on September 07, 2014

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