According to the World Travel & Tourism Council, Indian travelers spent $34.2 billion on foreign travel in 2023.
But the current level of Indian travel is “tiny” compared to what's to come, Alan Watts, Hilton's Asia Pacific president, told Squawk Box Asia on Monday.
“The story of India is before us,” he said. “India Outbound will be the story of the next decade.”
According to the World Travel & Tourism Council's Economic Impact 2024 report, Indian travelers' outbound spending will more than double to $76.8 billion by 2034 and 2023.
“If you think about India, it has the characteristics of China, the second largest accommodation market in the world,” Watts said. It has “1.4 billion people, a young population, historically strong GDP growth. But the infrastructure… is just being built in India.”
India is investing heavily in infrastructure to build and improve its roads, high-speed trains and airports to double its economy to $7 trillion by 2030 and make India a developed country by 2047.
According to Airports Council International, India currently has the third most air passengers in the world after the US and China. It is expected that 960 million new passengers will be added by 2042, it said.
On Monday, Air India, the country's leading airline, confirmed an order for 100 Airbus aircraft – 10 A350 and 90 A320neo jets – in addition to a then-record order for 470 Airbus and Boeing aircraft in 2023.
This follows a record-breaking order of 500 Airbus jets by India's budget airline Indigo in 2023, which Indigo says is scheduled for delivery between 2030 and 2035.
On whether India will be the “new China” in the global travel industry, Watts said it “certainly seems to have the right characteristics to be that, and that's why the industry has been so optimistic.”
He also noted that outbound travel is growing faster in India than in China.
Hotel expansion
Global hotel companies are also preparing for an explosion of new travelers as millions are expected to migrate to India's middle class in the coming years.
On November 19, Hilton announced a deal to open 150 Spark by Hilton hotels in India, a “premium economy” brand that will launch in the United States in 2023.
When discussing the potential for branded hotel expansion in India, Watts confirmed that there are about as many branded hotels in India as there are in Las Vegas.
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But now it's getting more attention from outside investors.
“What is different about India this time is its foreign direct investment. In fact, some of the big capital players are in India and that is new,” Watts said.
Marriott, IHG, Hyatt and Wyndham are also trying to capitalize on growing travel interest in India. Marriott announces plans to open 250 hotels in the subcontinent by 2025.
Courting Indian travelers
As outbound traffic from China remains subdued, more countries are wooing Indian travelers with new visa-free agreements, direct flights and advertising campaigns.
Australia's 'Howzat for a Holiday?' According to the Minister for Trade and Tourism, the campaign, launched in November during the Australia-India cricket Test series, is expected to reach 50 million people.
The number of Indian travelers to Australia is expected to double by 2028, according to a press release announcing the campaign launch.
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