With the expectation that the value of the Indian outbound travel market will reach $143.5 billion annually by the end of this decade, the Indian tourism sector will take the spotlight at the Arabian Travel Market 2024. The event is set to return for its 31st edition at the Dubai World Trade Centre from May 6 to May 9.
According to a report by Booking.com and McKinsey, 70% of Indians traveling abroad choose nearby destinations, with one-third opting for destinations in the Middle East. The United Arab Emirates tops the list among regional destinations, followed by Saudi Arabia.
India is the primary source market for Dubai, with 1.9 million visitors in the first ten months of 2023. Saudi Arabia aims to attract 7.5 million visitors by 2030. To illustrate the immense size and potential growth of the total Indian outbound market, before the pandemic in 2019, Indians made 26.9 million outbound trips. The report suggests that this number could rise to 50 million outbound trips by 2030.
Danielle Curtis, Exhibition Director for Arabian Travel Market in the Middle East, stated that the growth in outbound travel from India is primarily driven by the growing middle class. In 2020, only 37 million households had an annual income ranging from $10,000 to $35,000, but due to rapid economic growth in India, this number is expected to significantly increase to 177 million households by 2030.
Curtis added that households earning over $35,000 annually will also increase from two million in 2020 to 13 million by 2030, a six-fold increase. With India’s average age being only 28 years, it’s not surprising that the World Tourism Organization recognizes India as one of the three fastest-growing outbound markets globally. The total value of travel spending in India is expected to reach $410 billion by 2030.
According to a survey conducted by Acko General Insurance, the majority of Indian respondents were willing to spend up to $7,000 on international trips. Curtis concluded by stating that with over 8.5 million Indian expatriates currently working in the Gulf Cooperation Council countries, business and leisure travel will undoubtedly boost this growth.