Prime Minister Narendra Modi's appeal to Indians to avoid overseas travel for a year could provide a significant boost to domestic tourism, provided the government addresses key roadblocks, according to travel industry experts. Tour operators have highlighted two major challenges: exorbitant domestic airfares and high hotel tariffs during holiday periods. They have called for some form of cap on either to encourage inland travel.
Industry Concerns Over Affordability
Nilesh Bhansali, president of the Travel Agents’ Association of Pune, emphasized that domestic tourism must be made more affordable if people are expected to refrain from foreign travel. He noted that flying from Mumbai to Leh can sometimes cost more than traveling to Dubai, and hotel tariffs in popular destinations like Goa often double or triple during long weekends, making domestic travel unaffordable for many.
PM's Austerity Appeal
Earlier this week, Prime Minister Modi made an austerity appeal to Indians amid global energy supply disruptions caused by the ongoing West Asia conflict and rising fuel prices. He encouraged the use of public transport, avoidance of unnecessary gold purchases, revival of work-from-home practices, and reduction of non-essential foreign travel to conserve resources.
Impact on International and Domestic Travel
Travel industry representatives stated that the advisory could further hurt the struggling international travel segment but might give a fillip to domestic tourism. One travel company executive, speaking on condition of anonymity, noted that international travel is already suffering due to high aviation turbine fuel (ATF) prices, which have made every aspect of vacations expensive. Such appeals will have an impact on an industry that has been facing difficult times since early this year.
Mehboob Shaikh, chairman of the Travel Agents’ Association of India’s central and south Maharashtra chapter, warned that travel agents would be hit if international travel declines further. He explained that most profits come from international packages, flights, visas, and forex. While domestic travel may increase, it cannot compensate for international business, as international travelers spend much more per trip. Consequently, revenue per customer will drop with the decline in overseas travel.
ATF Prices and Domestic Airfares
Shaikh also pointed out that higher ATF prices have pushed up domestic airfares, limiting the expected shift toward domestic tourism. Nevertheless, he sees it as a good opportunity to strengthen the domestic travel market.
Mixed Reactions from Travelers and Agents
Santosh Gupta, owner of Shree Vinayak Holidays, believes the Prime Minister's appeal will not significantly affect travel behavior immediately. He noted that after COVID-19, travel resumed with a big bang, and people are adjusting their budgets to continue trips despite high ATF prices. Summer vacations remain the preferred travel period for most Indians, and visible impacts might emerge during the winter travel window.
Makrand Angal, owner of Go Holidays, observed that some travelers are reconsidering foreign vacations. He cited two clients who switched from planned trips to Hong Kong and Macau to Kashmir at the last moment.
Sujit Palikar, an IT professional from Kharadi, is planning a trip to Australia next month with his family. He said Modi's appeal puzzled them and raised doubts, leading them to review their plans.
Domestic Tourism Advantages
According to Angal, domestic tourism offers better customer satisfaction. Domestic travel is easier to manage, and stronger competition keeps prices relatively controlled. Another travel company representative added that travel today is not just a luxury but a necessity for business, education, family needs, mental well-being, and exposure. If airfare and hotel tariffs become more reasonable within India, they would strongly promote domestic tourism.
