Alan Watts, President of Hilton in Asia-Pacific, speaking to CNBC about the future of the travel industry in India, highlighted the rapid growth of the sector and how this could potentially reshape global tourism.
Watts noted that Indian travelers spent 34.2 billion euros on outbound travel in 2023, as reported by the World Travel & Tourism Council. However, he stated that this figure represents just the beginning of what is to come. “The story with India is ahead of us,” he said. “Outbound India will be the ‘story’ of the next decade,” he added.
By 2034, Indian travelers are expected to more than double their spending on international travel reaching 76.8 billion dollars, according to the World Travel & Tourism Council’s 2024 Economic Impact Report. This will propel India to the seventh spot among the world’s largest travel spenders, up from 12th place in 2023.
India currently ranks as the third-largest country in terms of air traffic, after the United States and China, according to the International Airports Council. It is expected to add 960 million new passengers by 2042.
Watts also highlighted Air India’s growth, the country’s flagship airline, which on Monday confirmed an order for 100 Airbus aircraft in addition to a record 2023 order for 470 Airbus and Boeing planes, an indication that the tourism industry is on the rise.
Watts stressed that India will be the “next China” in the global travel industry, adding that the country seems to have the right characteristics to drive this transformation. He pointed out that outbound travel is currently growing faster in India than in China.
As the travel sector continues to expand in India, multinational hotel chains are preparing for a surge in new travelers, as the middle class is expected to see significant income growth.
Last month, Hilton announced a deal to open 150 Spark by Hilton hotels in India, a “premium economy” brand launched in the United States in 2023, reflecting the company’s confidence in the country’s travel market.
