Soaring highs: Record domestic air traffic signals boom for India’s tourism industry

The travel and tourism sector was one of the sectors that was badly hit by the Covid pandemic, with traveler numbers hitting a record low in fiscal 2021. Since then, the sector has shown strength and bounced back from historic lows. India’s domestic passenger traffic is expected to cross 150 million passengers in fiscal 2024, which is higher than the pre-COVID level of 141.2 million in 2020. This upward trend in air traffic is expected to continue in 2025, thanks to continued strong demand and improving airport infrastructure in the country. These developments are reflected in India’s position in the World Economic Forum’s Travel and Tourism Growth Index 2024, which has risen to 39th in 2024 from 54th in 2021.

Source: DGCA website

Air Traffic and Tourism in India

The aviation and tourism industries complement each other. Tourism depends on the transportation industry to attract tourists, and the aviation sector depends on tourism to drive demand for its services. As the tourism industry grows, air traffic in the country increases.

As per the Indian Tourism Statistics 2023 report released by the Ministry of Tourism, India welcomed 6.44 million foreign tourists in fiscal 2022, a significant increase from 1.52 million in the Covid-hit fiscal 2021 and a 58.9% rebound from the pre-pandemic levels in 2019. Meanwhile, domestic tourism grew rapidly, with 1,731.01 million visits in fiscal 2022 compared to 677.63 million in fiscal 2021. For foreign visitors, air travel remains the preferred mode of travel. From abroad, 83.5% people arrived in India by air, 16.2% by land and 0.3% by sea in 2022. Around 46.3% of the total foreign tourist arrivals (FTA) in India landed at Delhi and Mumbai airports during the same period.

There has also been a shift in domestic travel preferences, with many travellers opting for air travel for its convenience. For example, Bengaluru International Airport has seen a significant shift towards smaller cities post-COVID-19. Before 2020, 75% of passengers travelled to large metropolitan cities. However, this has come down to 42%, with non-metro destinations increasing from 25% to 58%. Non-metro destinations now account for 45% of traffic from Bengaluru Airport, 30% to cities like Jaipur and Goa, and 25% to nearby cities like Trichy and Vizag.

At the domestic level, health concerns over the pandemic have led to an increase in the number of routes and flight frequencies due to safety measures; the number of domestic flights has increased from 54 to 74, including new routes to Jamnagar, Jaisalmer, Bareilly, Agartala and Jharsuguda.

Key Driving Factors

Traditionally, Hindus often visit religious sites, and with the rise in popularity and better connectivity, travel to such places has become more frequent and numerous. A few examples can illustrate this: when Ayodhya Ram Mandir was inaugurated earlier this year, searches for Ayodhya increased by 585% in FY23 compared to FY21; similarly, searches for Ujjain and Badrinath increased by 359% and 343%, respectively, during the same time frame.

Expansion of airport infrastructure

The number of operational airports in India has doubled from 74 in 2014 to 148 in April 2023, expanding its reach and making air travel accessible to more and more cities beyond the metropolitan cities. Not only the number of airports, but also the passenger handling capacity at existing airports has also increased due to the latest technologies and improved passenger convenience. These measures have contributed greatly to the increase in air travel utilisation and on-boarding of more and more new passengers.

The digital environment is shaping the interests of Indian travellers. Most Indian travellers are heavily influenced by social media like YouTube and Instagram when it comes to their travel motivation. For those seeking new experiences at home and abroad, easy access to the internet has made travel planning easier – from booking tickets, booking hotels to creating a complete itinerary.

How does the increase in air traffic affect tourism?

The growth of air traffic has a positive impact on tourism, improving access to various destinations, making travel easier and more convenient. Air transport allows millions of people to participate in cultural exchange. It also strengthens the tourism industry.

In India, the growth in air traffic indicates that more and more people are opting to travel by air, which has a positive impact on the tourism sector. This growth increases accessibility and convenience, allowing more people to reach different destinations quickly and efficiently. This increase in connectivity leads to more tourist arrivals, which contributes to the growth of local economies through increased spending on accommodation, restaurants and entertainment. Additionally, the growth in air traffic often leads to the development and modernization of airport infrastructure, which further enhances the travel experience.

Government initiatives

Launched in 2015 by the Ministry of Tourism, the scheme aimed at promoting sustainable and responsible tourism across the country. The ministry has approved 76 projects under the scheme. The revamped Swadesh Darshan 2.0 is aligned with the ‘voice for local’ and seeks to achieve the vision of ‘Aatmanirbhar Bharat’ by unlocking the full potential of India as a premier tourism destination.

The Government of India launched the Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) in 2014-15 through the Ministry of Tourism. This programme aims to enhance and identify pilgrimage sites all over India for the development of religious tourism. Its objective is to add pilgrimage sites on a priority, well-planned and sustainable basis, offering a wide experience of religious tourism.

In fiscal 2020, the Ministry of Tourism introduced the ‘Dekho Apna Desh’ initiative to promote domestic tourism. The initiative aims to create awareness among residents about the country’s rich heritage and culture and promote lesser-known destinations.

Ude Desh ka Aam Nagrik (Udan)

Challenges

The growth in domestic air traffic is putting additional infrastructural strain on existing airports. However, it also provides an investment opportunity in expanding and transforming airport facilities, which would improve the passenger experience and sustain tourism growth. The evolution of technological advancements in the tourism sector offers another opportunity to meet the expectations of the modern traveller. In line with this, most Indian airports are adopting digital solutions such as online bookings, virtual tours and AI-based customer service, which will restructure travel, reduce costs and attract tech-savvy tourists.

The growth in air travel has raised environmental concerns as the aviation industry emits large amounts of carbon dioxide, which can be addressed by promoting eco-friendly practices and sustainable tourism infrastructure. This could help India become a leader in green tourism, attracting eco-conscious travellers and ensuring the long-term protection of its natural tourist attractions.

Application

The record growth in domestic air traffic post-pandemic is a clear sign of a booming tourism industry in India. However, this growth poses several challenges and opportunities related to infrastructure strain, environmental impacts and the requirement for technological integration. By increasing investment in infrastructure upgrades at established tourist destinations, adopting sustainable practices and adopting advanced technologies, India can not only sustain this growth but also improve the overall travel experience. As India continues to develop its tourism sector and aviation industry with the support of a number of government initiatives, it can gain economically, culturally and environmentally, positioning itself as a leading destination for both domestic and international tourists.