Revival of the Heartland? The Rise and Future of Domestic Tourism in India
As global tourism recalibrates post-pandemic, India’s domestic tourism sector is witnessing unprecedented momentum. With international travel uncertainties and evolving traveler preferences, millions of Indians are turning inward, rediscovering the diversity and richness of their own country. From spiritual circuits and eco-tourism to adventure parks and heritage trails, domestic tourism is poised to become the backbone of the travel industry in India.
As per a report by the Ministry of Tourism, over 1.7 billion domestic tourist visits were recorded across Indian states in 2023, which is a significant rebound from pandemic-era lows. The Confederation of Indian Industry (CII) estimates that the domestic tourism market in India is projected to grow at a CAGR of over 13%, reaching USD 490 billion by 2030. This surge is driven by rising disposable incomes, improved regional connectivity, and a growing appetite for short-haul, experience-based travel.
There has been a noticeable trend in the form of a shift from traditional long vacations to frequent, short getaways. With work-from-anywhere becoming more mainstream and Tier-2 and Tier-3 cities developing fast, destinations once considered offbeat are now becoming hotspots. From weekend escapes to curated cultural experiences, travelers are seeking personalised journeys over package tours.
There’s a remarkable role played by ‘Experience-Driven Destinations’ which is reflected in the emergence of indoor amusement centers, adventure parks, wellness retreats, and heritage homestays as major players in the domestic travel economy. These experiential hubs are not just attracting local crowds but also encouraging interstate travel. Experts are of the opinion that such “destination projects” will play a pivotal role in reviving regional tourism economies and spreading footfall beyond traditional locations.
The Indian government has launched multiple initiatives to boost domestic tourism, including the ‘Dekho Apna Desh’ campaign and the development of 75 tourist circuits under the ‘Swadesh Darshan’ scheme. Investments in regional airports, national highways, and digital infrastructure are further increasing accessibility and affordability.
As India is aiming to become a $5 trillion economy, the tourism sector, particularly the domestic segment, will be a crucial driver of employment and entrepreneurship. With over 10 million people directly and indirectly employed in tourism, enhancing domestic travel opportunities will also provide for rural development and cultural preservation.
In the years to come, those at the helm believe that India’s domestic tourist base will double, driven by Gen Z, millennial travellers, and the rise of affordable luxury. The focus is expected to remain on sustainability, local immersion, and digital integration, redefining how India explores itself.