Indian states are intensifying campaigns and partnerships to capture a larger share of domestic tourism as overseas travel becomes increasingly expensive. According to reports from Business Standard, India recorded 4.28 billion domestic tourist visits in 2025, nearly double the 2.29 billion in 2024 and well above the 0.67 billion registered in 2021. Between 2011 and 2024, domestic visits grew at a compound annual growth rate of 9.89 per cent. The competition comes as the Indian rupee has declined over 7 per cent in one year, hitting almost 97 to the dollar, while international travel costs have reportedly risen by 20-30 per cent amid geopolitical uncertainty and higher fuel prices. As reported by the World Travel & Tourism Council's Travel & Tourism Economic Impact 2025, emerging economies in developing regions, particularly Asia-Pacific markets such as China and India, are expected to account for a growing share of global travel demand as wealth and international mobility increase.
Festive travel has significantly boosted domestic tourism during the current season. As reported by Cleartrip's travel trend tracker, leisure hotel bookings are up 135 per cent for Diwali and 66 per cent for Navratri. Bus travel is gaining strong momentum with bookings up 80 per cent in Delhi, 76 per cent in Pune, 68 per cent in Nagpur, 63 per cent in Chennai and 57 per cent in Mumbai. Domestic flight bookings to Gaya Ji, Dimapur, Dibrugarh, Gorakhpur, Jabalpur and Imphal have recorded double-digit growth, while Agatti rose triple-digit. Udaipur, Bengaluru and Jaipur emerged among the fastest-growing domestic hotel destinations, with budget stays leading at 201 per cent growth. The World Travel & Tourism Council notes that improving connectivity is making Europe more accessible to a wider range of travellers, with airlines expanding route networks and increasing direct long-haul connections.
Multiple states have launched targeted campaigns to attract domestic tourists. According to Business Standard, Kerala has rolled out special packages and experiences for the festival season, while Uttar Pradesh has launched its 'Visit My State' campaign. Rajasthan is promoting adventure tourism, desert safaris and rural experiences, with the Pushkar Fair and Mount Abu Winter Festival scheduled for November-December. Tamil Nadu has signed an agreement with Thomas Cook India and SOTC to attract domestic travellers through co-created travel products. Odisha is promoting 29 major destinations and water sports across multiple beaches, alongside a ₹1,500 crore plan to develop tourism infrastructure over five years. The World Travel & Tourism Council reports that governments and tourism authorities are playing an increasingly active role in attracting overseas visitors, investing heavily in destination marketing, aviation partnerships, and infrastructure improvements designed to increase international visitation.
Uttar Pradesh recorded the most domestic tourist visits in 2024 at 646.8 million, followed by Tamil Nadu at 306.8 million, Karnataka at 304.5 million, Andhra Pradesh at 290.2 million and Rajasthan at 230.08 million, according to the India Tourism Data Compendium 2025. As reported by Business Standard, travellers are increasingly taking shorter, more frequent breaks and seeking experiences beyond conventional sightseeing. Religious and spiritual tourism, particularly visits to destinations such as Ayodhya, Varanasi, Kedarnath and Tirupati, has gained considerable momentum, alongside adventure tourism, wildlife excursions, wellness retreats and rural tourism. The World Travel & Tourism Council notes that in faster-growing smaller and mid-sized markets, the opportunity is more often about building capacity, professionalising supply and meeting rising expectations as international visitor volumes increase.
The government is supporting state tourism initiatives through various programs. Under Swadesh Darshan 2.0, 53 projects worth about ₹2,207 crore have been sanctioned, while the PRASHAD scheme supports infrastructure and visitor amenities at pilgrimage and heritage sites. The government has outlined Dekho Apna Desh 2.0 to promote lesser-known, tourism-ready destinations. According to Cleartrip's Pallavi Saxena, the festival travel momentum will roll over into the back-to-back winter and year-end travel periods, indicating sustained appetite among Indians for domestic travel despite peak-season pricing constraints. The World Travel & Tourism Council emphasizes that success in these markets depends on understanding local conditions, choosing the right brand and operating model, and ensuring that new supply is aligned with the type of demand each destination is likely to attract.
