The India sustainable tourism market is estimated to reach ~USD 37.1 million in the year 2024 and is further forecasted to reach a valuation of ~USD 216.7 million in the year 2034 with a market CAGR of 19.3% between the years 2024 and 2034. The India sustainable tourism industry revenue in 2023 was USD 31.1 million.
The industry is expected to record an annual growth of (Y-o-Y) of 19.2% in 2024. The market value share of the India sustainable tourism industry in its parent market (tourism market) is approximately ~2%-5%.
India Sustainable Tourism Industry Assessment
| Attribute | Details |
|---|---|
| India Sustainable Tourism Market Size (2023A) | USD 31.1 Million |
| India Sustainable Tourism Market Estimated Size (2024E) | ~USD 37.1 Million |
| India Sustainable Tourism Market Forecasted Size (2034F) | ~USD 216.7 Million |
| India Sustainable Tourism Market Value-based CAGR (2024 to 2034) | 19.3% |
| India Sustainable Tourism Market Top Players Share in 2023 | 5%-10% |
Key Points Covered in India Sustainable Tourism Market Survey
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The COVID-19 pandemic affected tourism profoundly, having a critical impact on the economy, and the environment. Travel restrictions, lockdowns, and health concerns impacted the global tourism sector negatively. Further, International tourist arrivals dropped by 72% in 2020, a major decline in the history of world tourism according to the United Nations World Tourism Organization (UNWTO).
In the future, opportunities for development and revolution for both businesses and governments to take advantage of emerging trends. The government of India has shifted its attention towards the development of tourism facilities, in addition to this, the Government is committed to ensuring the sustainable preservation of tourist sites and protected areas to also visited by succeeding generations, to maximize the tourism sector's potential.
The factors lead to an increase in the demand for sustainable tourism in India, and the market is expected to grow with a healthy CAGR growth of 19.3%.
Key Trends Driving the India Sustainable Tourism Market
India is a popular tourist destination on a global scale due to its incredible variety of diversity. It is crucial to ensure the tourism sector's sustainability as most nations are recognizing the importance of sustainable tourism as a crucial worldwide trend for the development of the tourism industry.
The fact that India is a diverse country with attractive and serene landscapes that have cultural and historical value is one of the trends influencing the sustainable tourism business. Another contributing factor towards sustainable tourism in India is the increase in disposable income that raised people's urge to travel beautiful and eco-friendly destinations.
Local Activities Expected to Boost the Sustainable Tourism Industry in India
Sustainable tourism in India is on the rise due to several local initiatives and activities promoting responsible travel, protection of the environment, and empowering communities. The grassroots movements are instrumental in creating change towards a better future for the tourism industry in the country.
For instance, the City Walk program by Salaam Baalak Trust in Delhi involves young people in a walking tour of Delhi and not only provides a unique perspective of the city but also helps underprivileged youth gain valuable skills. The money raised from the program is used to provide scholarships, job opportunities, and shelters. More than 33 guides have been used, and many of the girls have used the experiences to further their education and get jobs in different fields.
Public Private Partnerships (PPP) for Sustainable Tourism
Public-private partnerships (PPPs) are of growing significance to sustainable tourism development in India. Cooperation between the authorities and businesses of both the public and private domains is beneficial in developing sustainable and eco-friendly tourism experiences.
For instance, a successful PPP for sustainable tourism in India is the development of eco-tourism facilities in the Andaman & Nicobar and Lakshadweep islands. The Ministry of Home Affairs, in association with NITI Aayog, initiated the bidding for developing sustainable and eco-tourism projects in seven islands through the PPP model. The initiative aims to promote the complete development of the islands while ensuring environmental sustainability.
Public private partnerships are strategic instruments in a growing economy as they facilitate the devolution of responsibility from the government and large organizations to manage and coordinate the delivery of services to the local community.
Principal Consultant
Effective cross-institutional linkages are vital for attracting private sector investment in sustainable tourism in India as these linkages require cooperation between government agencies, private companies, communities, and NGOs that form a coherent system for sustainable tourism development.
For instance, the cooperative tourism model was implemented in Uttarakhand and West Bengal, where local communities are empowered to manage tourism projects. The model not only contributes to the development of local culture and heritage but also ensures the economic benefits are distributed among community members, to achieve the purpose of equal development.
Integrated approaches increase the sustainable tourism sector in India and make a positive contribution to the economy, without harming the environment and local culture.
Government Initiatives Expected to Boost the Sustainable Tourism Market in India
The regulations governing sustainable tourism are heavily influenced by the governments at all levels such as central, state, and local. Additionally, a lot of the laws and regulations about sustainable tourism fall under the category of governance, including those about waste management, labor laws, environmental restrictions, and land usage.
Raising an environment that permits or influences the private sector to operate more sustainably, as well as influencing patterns of visitor flows and behavior to maximize the impact of tourism, is one of the main roles of the government in promoting sustainable tourism. Therefore, government engagement that goes above and beyond just creating an enabling environment is required.
Recognizing its role in encouraging sustainable tourism, the Ministry of Tourism, Government of India, engaged in a thorough discussion with the sector and other stakeholders in 1998 to develop the comprehensive Ecotourism in India.
Online Booking Is More Preferred by Tourists
In the India sustainable tourism market, online booking is identified as the most popular booking mode. The availability of smartphones and the accessibility of the internet, enable more people to use online platforms. Additionally, online booking offers advantages such as convenience, time-saving and the ability to compare prices and read reviews, which are highly valued by modern travellers.
The younger generation, particularly Gen Z and millennials, have adapted to using digital tools and prefer the seamless experience provided by online booking platforms. Consequently, online booking become the preferred choice for sustainable tourism in India, outpacing traditional phone and in-person booking methods.
Popularity of India Sustainable Tourism Among Middle-Aged People Will Remain High
In terms of age group, the 26 - 35 age demographic is more inclined towards travel and it is expected to increase in the forecast period as the age group is adventurous and eager to explore the world, making them more interested in sustainable travel experiences. Individuals in this age bracket often seek unique and immersive experiences such as eco-friendly accommodations, wildlife safaris, and cultural heritage tours.
Package Travel Is Mostly Preferred by The Tourists
In the context of sustainable tourism in India, packaged group travel is one of the most preferred modes among the travelling population due to the flexibility and affordability offered to the packaged tourist. Travellers benefit from pre-arranged itineraries, including accommodations, transportation, and sightseeing, often at discounted rates.
Simplifies the planning process and also ensures a hassle-free travel experience. Additionally, packaged group travel often includes guided tours, enhancing the overall experience by providing valuable insights into the destinations visited.
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The competitive landscape of the sustainable tourism industry in India is rapidly evolving, driven by increasing consumer awareness and government initiatives aimed at promoting environmentally responsible travel.
The government’s initiative to mainstream sustainability in tourism through the National Strategy for Sustainable Tourism, emphasizes resource efficiency, carbon neutrality, and the protection of cultural and natural resources.
For Instances
| Attribute | Details |
|---|---|
| Forecast Period | 2024 to 2034 |
| Historical Data Available for | 2019 to 2023 |
| Market Analysis | USD Million for Value |
| Key Region Covered | South Asia |
| Key Countries Covered | India |
| Key Segments Covered | Tourism Type, Booking Channel, Tourist Type, Traveller Type, Consumer Orientation, and Age Group. |
| Key Companies Profiled | Spiti Ecosphere; Tons Trails; Travelife; Asian adventures; Sky view by Empyrean; Green People; Evolve Back; Himalayan Ark; Kipepeo; Desia Ecotourism; Grassroutes Journeys; India Untravelled; Greaves India |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The Indian sustainable tourism market's current valuation is USD 31.1 Million in 2023.
The Indian sustainable tourism market grew by a CAGR of 15.7% in 2019 to 2023 and it is anticipated to expand at a CAGR of ~19.3% over the forecast period.
Leading players operating in the India sustainable tourism market are Spiti Ecosphere, Tons Trails, Travelife, Asian Adventures, Sky View by Empyrean, Green People, Evolve Back, Himalayan Ark, Kipepeo, Desia Ecotourism, Grassroutes Journeys, India untraveled.
The India sustainable tourism industry is anticipated to reach ~USD 216.7 million by 2034 end.
1. Executive Summary
2. Growth Parameters
3. Supply to Demand: Today’s Travel Distribution Network
3.1. Direct v/s Indirect Distribution
3.2. Travel Gross Revenues, by Channel, 2023
3.2.1. Supplier Direct
3.2.2. TMC
3.2.3. Tour Operator
3.2.4. OTA
4. Direct Suppliers
4.1. Total Supplier Market, Share by Segment (%), 2023
5. Indirect Suppliers
5.1. OTA (Online Travel Agency)
5.2. Traditional Travel Agencies
5.3. TMC's (Travel Management Companies)
5.4. Corporate Buyers
5.5. Aggregators
6. Number of Bookings, 2023
6.1. By Tourism Type
6.1.1. Eco-Tourism
6.1.2. Green Tourism
6.1.3. Soft Tourism
6.1.4. Community Tourism
6.2. By Booking Channel
6.2.1. Phone Booking
6.2.2. Online Booking
6.2.3. In-Person Booking
6.3. By Tourist Type
6.3.1. Domestic
6.3.2. International
6.4. By Traveller Type
6.4.1. Independent Traveller
6.4.2. Tour Group
6.4.3. Package Traveller
6.5. By Consumer Orientation
6.5.1. Men
6.5.2. Women
6.6. By Age Group
6.6.1. 15-25 Years
6.6.2. 26-35 Years
6.6.3. 36-45 Years
6.6.4. 46-55 Years
6.6.5. 56-65 Years
6.6.6. 66-75 Years
7. Country Shift, Key Country in Focus, 2023
8. Gross Revenue
8.1. Gross Revenue (USD Million) and Forecast (2024 to 2034)
8.2. Number of Bookings and Forecast (2024 to 2034)
8.3. Total Spending Y-o-Y Growth Projections (2024 to 2034)
8.4. Number of Tourists Y-o-Y Growth Projections
9. Challenges & Looking Forward
9.1. Success Stories: Case Studies
9.2. FMI Recommendations
10. Market Stakeholders Landscape - Key Direct Suppliers
10.1. Tour Operators
10.2. Government Bodies
11. Social Media Sentimental Analysis
11.1. Travel Influencers: A New Phenomenon in the world of Tourism
11.2. Social Media Platforms Preferred
11.3. Trending #Hashtags
11.4. Social Media Platform Mentions (% of Total Mentions)
11.5. Trending Subject Titles
12. Assumptions and Acronyms Used
13. Research Methodology
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India Sustainable Tourism Market
