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Inbound tourism in India is increasingly moving beyond traditional metropolitan hubs, reflecting a broader shift in travel patterns and regional growth, according to a report by the Mastercard Economics Institute.
The report highlighted that tourism, supported by policy measures, favourable demographics and rapid digitalisation, is emerging as a critical growth lever for South Asia, with India playing a key role in this trend. The report stated, "Inbound tourism is expanding beyond the traditional hubs India... Tourism is growing beyond traditional urban centers". Inbound tourism refers to visitors traveling into a country from abroad for purposes like leisure, business, or personal reasons, rather than for permanent work, making them non-residents in the destination country. The report noted that tourism is not only supporting overall economic activity but is also enhancing external stability while providing a boost to small businesses, local communities and domestic consumption. The report emphasised that tourism is becoming an increasingly important driver of growth for India and the broader South Asian region. With supportive policies, a young demographic profile and growing digital adoption, tourism is helping diversify economic activity beyond major cities. In India, this expansion is evident in the changing city-wise share of total tourism transactions between 2019 and 2025, indicating that travellers are increasingly exploring destinations beyond the established urban centres. As per the report data, Delhi has seen an increase of 1.5 percentage points in its share of total transactions in 2025 compared to 2019, making it one of the strongest gainers. In contrast, traditional hubs such as Mumbai and Bengaluru have witnessed a decline in their transaction share by 0.6 percentage points and 1.0 percentage point, respectively. Chennai also saw a marginal decline of 0.2 percentage points during the same period. At the same time, several leisure and cultural destinations have recorded gains, highlighting the shift in tourist preferences. Goa registered an increase of 0.6 percentage points, highlighting the continued appeal of its beach destinations. Rishikesh also recorded a rise of 0.6 percentage points, reflecting growing interest in wellness and spiritual tourism. Amritsar saw an increase of 0.3 percentage points, supported by strong inflows to religious and cultural sites, including the Golden Temple. Other destinations also posted modest gains. Hyderabad's share increased by 0.1 percentage point, while Munnar recorded a rise of 0.2 percentage points. Ranthambore also saw an increase of 0.1 percentage point, indicating steady interest in nature and wildlife tourism. Thrissur remained largely stable with no change, while cities such as Jaipur, Agra and Udaipur witnessed marginal declines of 0.3 percentage points, 0.1 percentage points and 0.2 percentage points, respectively. The report also shared that the expansion of inbound tourism into smaller cities and non-traditional destinations is also strengthening local economies, supporting small enterprises and generating wider consumption-led growth across regions. (ANI)
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