Soaring High: Record-Breaking Domestic Air Traffic Signals a Booming Indian Tourism Industry

Travel and tourism sector was one of the severely affected sectors during the Covid pandemic with number of travellers reaching record lows during FY21. Since then, the sector has shown strength and has rebounded from historic lows. In India, domestic air passenger traffic is expected to cross 150 million passengers in FY24, which is higher than the pre-COVID level of 141.2 million in 2020. This uptrend in air traffic is expected to continue in 2025 on the back of continued robust demand and improving airport infrastructure in the country. These developments are reflected in India’s rank in the World Economic Forum’s Travel & Tourism Development Index in 2024, which improved to 39th in 2024 up from 54th in 2021.

Source: DGCA Website

Air traffic and tourism in India

The aviation and tourism industry complement each other. Tourism depends on the transportation industry to draw tourists, and the aviation sector depends on tourism to drive demand for its services. As the tourism industry expands, it furthers air traffic in the country.

As per the Indian Tourism Statistics 2023 report published by the Ministry of Tourism, India greeted 6.44 million foreign tourists in FY22, a substantial increase from 1.52 million in Covid-affected FY21 and a 58.9% recovery from the pre-pandemic 2019 level. Meanwhile domestic tourism surged, with 1,731.01 million visits in FY22 compared to 677.63 million in FY21. For international visitors, air travel remains the preferred mode of transportation. From overseas, 83.5% people entered India via air routes, 16.2% via land routes, and 0.3% via sea routes, in 2022. Around 46.3% of the total Foreign Tourist Arrivals (FTAs) in India landed at Delhi and Mumbai airports, during the same period.

There has been a shift in domestic travelling preference too, with many travellers choosing air travel due to convenience. For instance, Bengaluru International Airport has seen a notable change towards travel to smaller cities post-COVID-19. Prior to 2020, 75% of passengers travelled to major metro cities. However, this has fallen to 42%, with non-metro travel rising from 25% to 58%. Non-metro destinations currently account for 45% of traffic from Bengaluru airport, 30% to cities like Jaipur and Goa, and 25% to nearby cities such as Trichy and Vizag.

At the national level, health concerns during the pandemic led to increased flight routes and frequencies due to safety measures; connections increased from 54 to 74 domestic destinations, including new routes to Jamnagar, Jaisalmer, Bareilly, Agartala, and Jharsuguda.

Key Drivers

• Spiritual tourism

Traditionally, Indians often visit religious destinations, and with increasing popularity and better connectivity, travels to such destinations have increased in frequency and numbers. This can be illustrated with a few examples: when Ayodhya Ram Mandir was inaugurated earlier this year, queries for Ayodhya grew 585% in FY23 compared to FY21; similarly, searches for Ujjain and Badrinath soared 359% and 343%, respectively, in the same time frame.

• Expanding airport infrastructure

The number of operational airports in India doubled from 74 in 2014 to 148 in April 2023, expanding its reach and making air travel accessible in more and more non-metro cities. Not only the number of airports, passenger handling capacity at existing airports has also been increase with state if the art new technologies and enhanced passenger convenience. These measures have gone a long way in increasing the usage of air travel and on boarding more and more new flyers. 

• Internet penetration

The digital environment shapes the interests of Indian travellers. Most Indian travellers are heavily influenced by social media like YouTube and Instagram for their travel motivation. For people in pursuit of new experiences within the country and abroad, easy internet access has made it simpler to plan a trip ─ from booking tickets, reserving hotels to creating a complete itinerary.

How does increase in air traffic affect tourism?

Growth in air traffic positively impacts tourism by improving accessibility to various destinations, making travel easier and more convenient. Air transport allows millions of people to participate in cultural exchange. It also boosts the tourism industry.

In India, the rise in air traffic indicates that more people are choosing to travel by air, which is positively impacting the tourism sector. This growth enhances accessibility and convenience, enabling more people to reach various destinations quickly and efficiently. This growth in connectivity leads to higher tourist arrivals, advancing local economies through increased spending on adaptations, dining, and entertainment. Additionally, the increase in air traffic often leads to the development and modernisation of airport infrastructure, further improving the travel experience.

Government initiatives

• Swadesh Darshan

Introduced in 2015 by the Ministry of Tourism, the scheme planned to boost sustainable and responsible tourism across the country. The Ministry has approved 76 projects under this scheme. The renewed Swadesh Darshan 2.0 aligns with the "vocal for local" and tries to succeed the vision of “Aatmanirbhar Bharat” by opening India's full potential as the best tourism destination.

• PRASAD 

The Indian government launched Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD) in 2014–15 via the Ministry of Tourism. This scheme is proposed to improve and identify pilgrimage sites throughout India to advance religious tourism. Its objective is to add pilgrimage destinations in a prioritised, well-planned, and sustainable way, offering a broad religious tourism experience.

• Dekho Apna Desh

In FY20, the Ministry of Tourism introduced ‘Dekho Apna Desh’ initiative to promote domestic tourism. The initiative aims to increase awareness among residents about the country's rich heritage and culture and promote lesser-known destinations.

• Ude Desh ka Aam Nagrik (Udan)

In FY20, the Ministry of Tourism introduced ‘Dekho Apna Desh’ initiative to promote domestic tourism. The initiative aims to increase awareness among residents about the country's rich heritage and culture and promote lesser-known destinations.

Challenges

The rise in domestic air traffic exerts additional infrastructural stress on the current airports. However, it also provides an investment opportunity in the extension and transformation of airport facilities, which would enhance passenger experience and sustain tourism growth. The evolution of technological advancements in the tourism sector offers another opportunity to meet the expectations of the modern traveller. In line with this, most Indian airports are adopting digital solutions like online booking, virtual tours, and AI-driven customer service, which will restructure travel, reduce costs, and attract tech-savvy tourists.

The rise in air traffic raises environmental concerns as the aviation industry emits high amount of carbon that can be tackled by promoting eco-friendly practices and sustainable tourism infrastructure. By doing so, India can be a leader in the green tourism space, attracting environmentally conscious travellers and ensuring long-term conservation of its natural tourist attractions.

Conclusion

The record-breaking growth in domestic air traffic after the pandemic is a clear sign of a booming tourism industry in India. However, this growth presents several challenges and opportunities related to infrastructure strain, environmental effects, and the requirement for technological integration. By increasing investments to modernise infrastructure in famous tourist destinations, adopting sustainable practices, and embracing advanced technologies, India can not only sustain this growth but also improve the overall travel experience. As India continues to develop its tourism sector and the aviation industry with the support of multiple government initiatives, it stands to gain economically, culturally, and environmentally, placing itself as a leading destination for both domestic and international tourists.