Indian travelers are expected to spend $34.2 billion on outbound travel in 2023, according to the World Travel & Tourism Council.
But it is the current level of travel in India “Minuscule” compared to what’s to come, Alan Watts, president of Hilton’s Asia-Pacific, said “Squawk Box Asia“Monday.
“India’s story is before us,” he said. “India exit will be the story of the next decade.”
By 2034, India’s outbound spending by travelers is expected to double to $76.8 billion, according to the World Travel & Tourism Council’s Economic Impact 2024 report, making the country the seventh largest travel spender in the world, up from 12th. 2023
“When you think of India, it has characteristics of China, which is the second largest lodging market in the world,” Watts said. “It has 1.4 billion people, a young population, historically strong GDP growth. But the infrastructure … is being built in India now.”
India is investing heavily in infrastructure to build and improve roads, high-speed trains and airports to double its economy to $7 trillion by 2030. Make India a developed nation by 2047.
India currently has the third highest number of air travelers in the world, behind the United States and China, according to the Airports Council International. It is expected to add 960 million new passengers by 2042, he said.
On Monday, Air India, the country’s flag carrier, confirmed an order for 100 Airbus planes — 10 A350s and 90 A320neo planes — in addition to its record-breaking order for 470 Airbus and Boeing planes by 2023.
That’s after it broke a record for 500 Airbus aircraft from Indian low-cost carrier Indigo in 2023, which is scheduled for delivery between 2030 and 2035, according to Indigo.
India will be the “new China” of the global travel industry, Watts said, “it seems like it has the right qualities to do so, which is why the industry has been so bullish.”
He also noted that outbound travel is growing faster in India than in China.
Expansion of the hotel
Global hospitality companies are bracing for an explosion of new travelers as millions of Indians are expected to enter the middle class in the coming years.
On November 19, Hilton announced a deal to open 150 Spark by Hilton hotels in India, the “premium economy” brand launched in the United States in 2023.
Discussing the expansion potential of branded hotels in India, Watts asserted that India has the same number of branded hotels as Las Vegas.
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But now it has more attention from outside investors.
“What’s different about India now is foreign direct investment. In fact, some big capital players are in India, which is new,” Watts said.
Marriott, IHG, Hyatt and Wyndham are also moving to tap into India’s growing travel interest, with Marriott announcing plans to own it. 250 hotels in the subcontinent by 2025.
Courting Indian travelers
As outbound travel from China remains muted, more countries are wooing Indian travelers through new visa-free deals, direct flights and advertising campaigns.
Australian”Howzat for the holidays?” campaign, launched during the Australia-India Test cricket series in November, is expected to reach 50 million people, according to the trade and tourism minister.
The number of Indian travelers to Australia is expected to double by 2028, according to a press release announcing the launch of the campaign.
