India’s Tourism Growth To Be Driven By Niche & High-Value Segments: EY–FICCI Report

New Delhi, Apr 28 (KNN) India’s next phase of tourism growth will be driven by niche, experience-led and high-value segments, according to a joint report by Ernst & Young (EY) and Federation of Indian Chambers of Commerce and Industry (FICCI).

The report identifies event and concert tourism as a key demand driver. Large-scale events are drawing domestic and international visitors, with a Coldplay concert in Ahmedabad generating an estimated Rs 641 crore (USD 68.6 million) in economic impact, ANI reported. 

Such events boost visitor inflows and support hospitality, transport and retail sectors. Integrating this with MICE infrastructure could position India as a global hub for conferences and entertainment-led travel.

Emerging High-Potential Segments

Culinary tourism is gaining traction, leveraging India’s diverse food culture through food trails and immersive experiences. Spiritual and wellness tourism remains a strong segment, driven by global interest in yoga, meditation and Ayurveda.

Wildlife and nature tourism is also expanding, supported by India’s biodiversity and national parks, with potential to promote sustainable development and local livelihoods.

New Opportunities

The report highlights emerging areas such as space and science tourism, with Indian Space Research Organisation (ISRO) enabling experiential opportunities. Regions like Ladakh are gaining popularity for astro-tourism due to clear night skies.

Women-centric tourism is also growing, driven by increasing solo women travellers seeking safe and inclusive experiences.

Premium Segments and Outlook

High-value segments like golf and sports tourism offer further growth potential by attracting high-spending travellers and enhancing destination visibility.

India’s tourism sector contributes about Rs 21 trillion to GDP and supports over 46 million jobs. However, foreign tourist arrivals at 9.9 million in 2024 remain relatively modest, indicating significant room for growth through targeted development of niche segments, the report highlighted.

(KNN Bureau)