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India becomes 5th biggest tourist source for Australia with 845 arrivals a day

The primary cause of this increase in foot traffic is Tourism Australia’s collaborative efforts with its airlines, important distribution partners, and more than 5,000 Aussie Specialist Agents in India to encourage contemplation and conversions

Around 26,200 Indian tourists visited Australia in January of this year, representing an increase of more than 6% year over year, according to a Tuesday report from Tourism Australia.

Additionally, India’s standing has increased dramatically from seventh in 2019 to fifth in 2024 as the largest incoming market for Tourism Australia.

“In January we did extremely well with 26,200 Indians travelling to Australia, compared to 24,700 during the same month in 2019, a growth of 6.07 per cent.

“If we calculate from February 2023 till January 2024, the total number of Indians visiting Australia has crossed the 4,00,000 arrivals milestone to reach 4,02,200,” Tourism Australia Country Manager - India and Gulf - Nishant Kashikar told PTI.

According to him, the primary cause of this increase in foot traffic is Tourism Australia’s collaborative efforts with its airlines, important distribution partners, and more than 5,000 Aussie Specialist Agents in India to encourage contemplation and conversions.

“The number of airlines connecting New Delhi, Bengaluru and Mumbai has gone up to 28 flights per week from 8 flights in 2019,” stated Kashikar.

According to him, the ease and convenience of the electronic visa application procedure has contributed to an increase in the number of Indian visitors to Australia.

Furthermore, since the Covid-19 pandemic, Indians’ travel habits have drastically changed due to a generational shift in which the average age of travelers is decreasing, a more indulgent mindset, and a desire to see festivals, athletic events, concerts, and other events around the world, according to Kashikar.

“This resurgence of Indian tourists to Australia is a testament to the resilience and rebound of international travel, particularly from one of our most valued markets.

“This is a clear indicator of the strong desire for travel and exploration among the Indian travellers, who are drawn to Australia’s unique landscapes, wildlife, and the multicultural vibrancy of our cities. Going forward in 2024, we expect the same momentum to continue from India,” he added.

(With agency inputs)

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A long-standing member of the Tourism Australia team, Nishant Kashikar was appointed Country Manager of India in 2010. Prior to this Nishant worked at travel distributors SOTC Travel and Thomas Cook India.

HOW IS LIFE IN India AT THE MOMENT?

Despite the increase in number of cases, consumer confidence index amongst Indians has remained high, with our l atest consumer demand research results revealing that Australia has maintained its highest ranking for consideration and intention amongst Indian travellers.

Whilst India is currently witnessing the second wave of COVID-19, it has also launched one of the world’s biggest vaccination programs and has immunized over 70 million people in just over 10 weeks. If you walk down the streets of India, you would feel that it’s business as usual. However, eight states of India that contribute to almost 85 per cent of the total cases have imposed lockdown measures until 30 April 2021.

A latest travel trends report by American Express suggests that 86 per cent Indians would like to travel to visit their loved ones and 87 per cent of Indian consumers are interested in extended trips to experience new destinations while working remotely, suggesting a pent-up demand for international holidays.

Our key stakeholders are currently promoting domestic vacations, staycations and holidays to international destinations that have opened its borders for Indian travellers. We are actively engaged with our key distribution partners including Thomas Cook, SOTC, MakeMyTrip, along with our 40+ Premier Aussie Specialist agents who are geared up to promote Australia as soon as we enter the freedom of movement stage.

The Indian government has established air bubble arrangements with 27 countries including the United States, United Kingdom, Canada, Germany, France, Holland, Japan, Seychelles, Russia, Kenya, Maldives and the United Arab Emirates. The bubble arrangements have been set up with relevant safety protocols and have resulted in an increase in visiting friends and relatives and student traffic to these countries.

Our trade, including Aussie Specialist Program agents, are confident of arrivals to Australia bouncing back strongly, once the borders open and airlines restore their aviation capacity.

WHAT ARE TOURISM AUSTRALIA’S KEY AREAS OF FOCUS IN THESE CHALLENGING TIMES?

Tourism Australia has aggressively protected its number one position as the most considered and intended outbound destination amongst our target audience, ensuring we remain top of mind amongst consumers as soon as travel can resume. The Border-Gavaskar cricket series and the Australian Open allowed us to reach out to over 35 million travel enthusiasts with branded content, advocacy and PR-led initiatives, involving Australian cricket legends David Warner, Brett Lee and Friend of Australia, Harsha Bhogle.

Our Aussie Specialist team has delivered over 18,000 trainings during the pandemic and are engaging the trade through interesting workshops involving Australian Masterchefs and Indigenous artists. Aligned to our content, PR and advocacy activities, Aussie Specialist training has focused upon ensuring these highly engaged agents are able to recommend and sell the ultimate Aussie holiday to their customers.

IN THESE TRYING TIMES, WE COULD ALL DO WITH SOME GOOD NEWS. WHAT HAS PUT A SMILE ON YOUR FACE RECENTLY?

The Indian economy is already looking at a ‘V-shaped’ recovery, with GST collections in March 2021 recording an all-time high of 1.24 trillion rupees (A$22.5 billion), 27 per cent higher than March 2020. The GST collections were also 14 per cent higher in the January to March quarter of 2021 compared to the last quarter of 2020. Various economic sectors and industries are also showing signs of recovery.

Based on IMF, Moody’s and Oxford Economics estimates, the Indian economy is likely to grow by up to 14 per cent in the next fiscal year starting Apr 2021, after an expected contraction of 8 per cent in the current year. The Indian government has laid out a vision to make India a USD5 trillion economy by 2025, in other words, the world’s 4 th largest economy.

The mid to long term opportunity offered by the Indian market remains high and given the young demography and rising economy, the market has the potential to deliver 1 million visitors to Australia over the next decade.

The Australia – India bilateral relationship has significantly strengthened and the same is evident through heightened engagements at the political, trade and investment level and the social media banter between the two Prime Ministers.

For more information Please feel free to contact the Tourism Australia India team directly if you have any questions. 

FINALLY, WHAT ADVICE DO YOU HAVE FOR AUSTRALIAN INDUSTRY WANTING TO STAY ENGAGED WITH THE INDIA MARKET?

India will deliver and pay rich dividends in the mid to long term, as it has a young and an aspirational population. Australia continues to enjoy the highest awareness and holidays are now becoming an integral part of the Indian lifestyle.

We’d strongly advise the Australian industry to stay engaged, participate in virtual trainings and trade events organised by Tourism Australia, and facilitate the launch of new products, experiences and destinations that would resonate with the new-aged Indian traveller.

You may also enrol for the India Host program launched by ATEC to enhance your understanding of the Indian traveller and exceed the expectations of your customers.

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Acknowledgement of Country

We acknowledge the Traditional Aboriginal and Torres Strait Islander Owners of the land, sea and waters of the Australian continent, and recognise their custodianship of culture and Country for over 60,000 years.

*Disclaimer:  The information on this website is presented in good faith and on the basis that Tourism Australia, nor their agents or employees, are liable (whether by reason of error, omission, negligence, lack of care or otherwise) to any person for any damage or loss whatsoever which has occurred or may occur in relation to that person taking or not taking (as the case may be) action in respect of any statement, information or advice given in this website. Tourism Australia wishes to advise people of Aboriginal and Torres Strait Islander descent that this website may contain images of persons now deceased.

Indian tourists prefer Australia as vacation destination

Tuesday, March 26, 2024 Favorite

The resurgence of Indian tourists flocking to Australia, marking a historic milestone in the post-pandemic world, signifies not only the rebound of international travel but also highlights the evolving dynamics between the two countries.

The data released by the Australian Bureau of Statistics (ABS) for the year-ended January 2024 shows that arrivals from India stood at 402,200, reaching 101% of the 2019 levels. This achievement is monumental for Tourism Australia, as it is the first time that arrivals from India have crossed the 400,000 mark. This significant influx has propelled India to become the 5th largest inbound market for Australia in 2024, up from the 7th position in 2019.

In January 2024 alone, Australia welcomed 26,200 visitors from India, which is 106% of the pre-pandemic levels in 2019. This notable increase in tourist numbers from India is not just a statistic but a testament to the mutual efforts and strategic initiatives undertaken by Tourism Australia and its partners. The allure of Australia as a preferred destination for Indian tourists has never been stronger, fueled by a mix of targeted marketing strategies, the convenience of a fully digitalized visa application process, and an increase in air travel options between the two countries.

The success of these initiatives is evident in the sustained rise in visitor numbers year after year since 2019. Tourism Australia has been at the forefront of these efforts, working closely with airlines, key distribution partners, and over 5,000 Aussie Specialist Agents in India. These collaborations have been pivotal in driving consideration and conversion rates among potential travelers, showcasing the commitment of Tourism Australia to not only revive but also expand its tourist base post-pandemic.

Nishant Kashikar, Country Manager – India & Gulf for Tourism Australia, reflects on this resurgence as a clear indicator of the strong desire among Indian travelers for exploration and adventure. “This resurgence of Indian tourists to Australia is a testament to the resilience and rebound of international travel, particularly from one of our most valued markets,” he says. Kashikar’s statement underscores the significance of the Indian market to Australia’s tourism industry and highlights the strong cultural and economic ties that bind the two nations.

The reasons behind the growing popularity of Australia among Indian tourists are manifold. Australia’s unique landscapes, rich wildlife, and the multicultural vibrancy of its cities are major attractions. The targeted marketing initiatives have played a crucial role in presenting Australia as an appealing destination. These efforts have been supported by the speed and ease of the visa application process, which has been completely digitized, making it more accessible for Indian tourists. Additionally, the growing air travel options between India and Australia have made travel more convenient, further encouraging tourists to choose Australia as their destination.

The increase in tourist numbers from India not only benefits Australia’s tourism sector but also contributes to the broader economy. The influx of tourists brings in significant revenue, supports local businesses, and creates jobs, thereby playing a vital role in the economic recovery post-pandemic. Moreover, the cultural exchange fostered by tourism enhances mutual understanding and strengthens the bilateral relations between India and Australia.

As we look to the future, the trajectory of Indian tourists visiting Australia is poised for further growth. With both nations continuing to strengthen their ties and invest in joint tourism initiatives, the potential for attracting even more visitors is immense. The success story of Tourism Australia’s engagement with the Indian market serves as a model for other nations, highlighting the importance of targeted marketing, ease of access, and strong partnerships in revitalizing and expanding the tourism sector in the post-pandemic era.

The record-breaking number of Indian tourists visiting Australia in 2024 is a significant milestone that reflects the resilience of international travel and the enduring appeal of Australia as a destination. This achievement is a testament to the strategic efforts of Tourism Australia and its partners, who have worked tirelessly to attract and welcome Indian visitors. As the world continues to navigate the challenges and opportunities post-pandemic, the successful revival of tourism between India and Australia stands as a beacon of hope and a model for the global travel industry.

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India’s Passion for Aussie Adventures Hits Record High

Posted by Madhura Katti | Apr 8, 2024 | South Asia | 1 |

The allure of Australia’s unique biodiversity, coupled with its multicultural urban vibrancy, has never been more captivating for Indian travellers. This remarkable uptick in travel activity can be attributed to strategic marketing initiatives, the seamless transition to a fully digital visa application process, and the expansion of air travel options between the two nations. The collaboration between Tourism Australia, its airline partners, key distribution allies, and an impressive network of over 5,000 Aussie Specialist Agents in India has been instrumental in this achievement.

Nishant Kashikar, Tourism Australia’s Country Manager for India and the Gulf, reflects on this achievement with pride and optimism. “The remarkable increase in Indian visitors to Australia is not just a rebound but a resilient testament to the enduring appeal of international travel,” Kashikar asserts. He highlights the intrinsic desire among Indian travellers to explore the world, drawn irresistibly to Australia’s distinctive terrains and the rich tapestry of its urban centres.

This resurgence of interest from Indian tourists is not merely a statistic but a narrative of recovery, resilience, and the insatiable human spirit for exploration. Australia’s targeted efforts to welcome Indian tourists have paid off immensely, positioning the country as an unrivalled destination that offers both the wonders of nature and the warmth of a diverse cultural experience.

As we progress, the travel trajectory between India and Australia is poised for even greater heights, bolstered by continuous enhancements in travel facilitation and a mutual appreciation for cultural exchange. This historic milestone in travel between India and Australia is not just a triumph for Tourism Australia but a beacon of hope for the global travel industry, signalling a vibrant resurgence in the post-pandemic world.

Written by: Madhura Katti

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101% of 2019 levels means numbers of visitors have gone up by 1% since 2019. You might want to revise your English there as I don’t think that’s what you’re trying to say.

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• Indian footfalls to Australia surge; India becomes 5th largest inbound market for Tourism Australia

Tourism Australia reported a 6% increase in Indian tourist arrivals to Australia in January 2024, with 26,200 visitors. India rose to become the fifth largest inbound market, up from seventh in 2019. Joint efforts with airlines and distribution partners, increased flight connections, and easier visa processes contributed to this growth.

• Published On Mar 26, 2024 at 09:00 PM IST

Australia witnessed over 6 per cent on-year growth in Indian tourists arrivals in January this year, with 26,200 Indians travelling to the country, Tourism Australia said on Tuesday. Moreover, India has also significantly improved its ranking to be the fifth largest inbound market for Tourism Australia in 2024, from seventh in 2019. "In January we did extremely well with 26,200 Indians travelling to Australia, compared to 24,700 during the same month in 2019, a growth of 6.07 per cent. "If we calculate from February 2023 till January 2024, the total number of Indians visiting Australia has crossed the 4,00,000 arrivals milestone to reach 4,02,200," Tourism Australia Country Manager - India and Gulf - Nishant Kashikar told PTI. Advt This growth in footfalls is mainly due to Tourism Australia's joint endeavours with its airlines, key distribution partners, and over 5,000 Aussie Specialist Agents in India to drive consideration and conversions, he said. "The number of airlines connecting New Delhi, Bengaluru and Mumbai has gone up to 28 flights per week from 8 flights in 2019," said Kashikar. Also, the electronic lodgement of visa application , which has made the visa application process easy and more convenient, helped in more Indians visiting Australia, he said. Moreover, the travel trend has completely changed for Indians after the Covid-19 pandemic as there is a generational shift with the age of travellers going down, also the attitude of Indians have become more splurging and people have become globetrotters wanting to attend festivals, sporting events, concerts among others, Kashikar noted. "This resurgence of Indian tourists to Australia is a testament to the resilience and rebound of international travel, particularly from one of our most valued markets. "This is a clear indicator of the strong desire for travel and exploration among the Indian travellers, who are drawn to Australia's unique landscapes, wildlife, and the multicultural vibrancy of our cities. Going forward in 2024, we expect the same momentum to continue from India," he added.

• Updated On Mar 26, 2024 at 09:00 PM IST

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Australia’s Arrivals from India Break New Record — Tourism Chief Talks Strategy

Peden Doma Bhutia , Skift

March 27th, 2024 at 6:05 AM EDT

The travel trends to Australia underscore the potential of India's middle class and its young demographic as a major force in shaping future travel trends.

Peden Doma Bhutia

Australia saw a record-breaking number of arrivals from India last year.

The new figures, which cover February 2023 to January 2024, show 402,200 inbound travelers entered the country from India. The major milestone even surpasses pre-pandemic levels, according to latest data from the  Australian Bureau of Statistics . 

It marks the first time Australia has crossed the 400,000-arrival mark. As a result, India is now the 5th largest inbound market for Tourism Australia, up from 7th place in 2019.

The organization also says Indians are spending and contributing significantly to the Australian economy.

The total trip spend by Indian visitors has also seen a notable increase for the year ending January 2024. It is up 20%, amounting to A$ 2.2 billion ($1.4 billion), with the per capita spend rising from A$ 4,908 ($3204) to A$ 5,901 ($3853), according to Nishant Kashikar, country manager — India and Gulf for Tourism Australia.

In January 2024 alone, Australia welcomed 26,200 visitors from India, representing 106% of January 2019 arrivals.

What Clicked For Australia?

“Our initiatives across marketing, public relations, partnerships, distribution, trade, and business events in India, have helped us achieve these numbers,” Kashikar told Skift.

He further credited the three-fold increase in direct aviation capacity from 8 to 28 weekly flights and the streamlined visa application process for enhancing accessibility.

Australia also issues three-year multiple-entry visas to tourists in India without any need for physical submission of documents. The duration of business visas has also been increased by up to five years, compared to the earlier three-year option.

Direct air access by Qantas and Air India, from Indian cities to Australia along with Qantas’ codeshare with IndiGo have also helped to increase accessibility.

“We are working with Indian as well as Australian carriers and airports to further build direct aviation connectivity,” Kashikar said.

Analyzing traveler profiles, Kashikar highlighted that 75% of Indian visitors to Australia were leisure travelers, with 8% traveling for business, 7% for employment, and 5% for short-term education.

Speaking to Skift at the beginning of the year , Kashikar described India as the fastest-growing inbound market for Australia, thanks to the rising middle class .

The Business Travel Rebound

Discussing the bounce-back of meetings, incentives, conferences, and event (MICE) travel from India to Australia, Kashikar noted a significant surge in leads for business events. “We’re seeing a five-time increase in leads than what we witnessed in 2019,” he told Skift in January.

He also said a key factor for this growth has also been the strengthening of bilateral ties between Australia and India across trade, investment, education, and tourism.

Speaking about Indian travel habits, Kashikar mentioned a generational shift as younger Indians travel at a much earlier age, leading to a significant increase in trips.

The shift from a savings-focused economy to one where Indians are spending more on holidays, especially among the youth has also made India a lucrative market for destinations, according to Kashikar. This trend is driving increased expenditure on travel-related services.

Kashikar also noted that Indians are increasingly immersing themselves in local experiences, such as festivals, sporting events, history, architecture, and culinary activities, which presents a significant growth opportunity for travel destinations catering to these preferences.

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Photo credit: Tourism Australia has crossed the 400,000-arrival mark from India. S O C I A L . C U T / Unsplash

• Minister for Foreign Affairs
• Minister for Women

Senator the Hon Marise Payne

• Media Releases
• Transcripts

This content has been archived.

Strengthening our ties with india.

• Joint media release
• Senator the Hon Marise Payne, Minister for Foreign Affairs, Minister for Women
• The Hon Dan Tehan MP, Minister for Trade, Tourism and Investment
• The Hon Stuart Robert MP, Minister for Employment, Workforce, Skills, Small and Family Business, Acting Minister for Education and Youth
• The Hon Paul Fletcher MP, Minister for Communications, Urban Infrastructure, Cities and the Arts
• The Hon Alex Hawke MP, Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs

The Morrison Government is further strengthening our ties with India, one of Australia’s most important partners in the Indo-Pacific region. A series of new initiatives to support our education, community, tourism and investment links will add to our growing bilateral relationship, which was elevated to a Comprehensive Strategic Partnership in 2020.

Following meetings between the Minister for Foreign Affairs and Minister for Women, Senator the Hon Marise Payne, and India’s Minister of External Affairs Dr S. Jaishankar in Melbourne, the Government has launched three Maitri (friendship) initiatives, which will foster Australia-India cooperation, creativity, understanding and exchange.

The $11.2 million Maitri Scholarships Program will attract and support high achieving Indian students to study at Australian universities. It will showcase Australia’s globally renowned academic and research institutions, particularly in science, technology, engineering, mathematics and health.

The $3.5 million Maitri Grants and Fellowships Program will build links between our future leaders, supporting mid-career Australian and Indian professionals to collaborate on strategic research and shared priorities.

The $6.1 million Australia-India Maitri Cultural Partnership will boost the role of creative industries in our economic and people-to-people ties. This partnership will also promote artistic talent and cultural exchanges in our two countries’ world class visual and performing arts, literature, film, television and music industries.

Following meetings between the Minister for Trade, Tourism and Investment, the Hon Dan Tehan MP, and India’s Minister of Commerce and Industry Piyush Goyal in New Delhi, the Government has also renewed the Australia-India Memorandum of Understanding (MoU) on Tourism Cooperation and launched the Australia India Infrastructure Forum.

The renewed MoU positions tourism operators to take advantage of our international border re-opening to all fully vaccinated eligible visa holders, including tourists and business travellers from 21 February. Under the MoU, Australia and India will promote travel between the two markets and advance cooperation on tourism policy, data sharing, training and industry engagement. Pre-pandemic, India was Australia’s fastest-growing source of international visitors. In 2019, almost 400,000 visitors from India visited Australia and spent a combined total of $1.8 billion.

The Australia India Infrastructure Forum will serve as a hub to promote two-way investment in infrastructure. As a side initiative of the Comprehensive Economic Cooperation Agreement, currently under negotiation with India, it will also support our broader trade and investment objectives. A new $5.8 million Bay of Bengal Connectivity Partnership will expand this work to other countries in the region.

These initiatives reflect our nations’ shared commitment to cooperation and exchange, as set out in the Australia-India Comprehensive Strategic Partnership, agreed in June 2020.

Media enquiries

• Introduction

Recommendations

• Executive Summary & Overview
• Opportunities
• Download Report
• Sector Snapshots

Tourism Sector

Chapter six tourism sector.

• By 2035, the number of Indian tourists to Australia is expected to grow four-fold, from 300,000 in 2017 to nearly 1.2 million. This puts India on track to go from being Australia's eighth largest tourism market today to our fourth.
• An estimated 70 million Indians will travel overseas annually by 2035 meaning Indian tourism could be worth over $9 billion each year to the Australian economy.
• Attracting a greater share of travellers and more high-value travellers from India will be important for sustaining the profile and scale of Australia's tourism sector.
• Australia should continue to grow the number of Indian tourists visiting friends and relatives in the diaspora and student bodies in Australia and we should continue to target luxury holiday-makers and business travel niches as new growth markets.
• Australia can do this by stimulating Indian demand and improving the supply offering through tailored development and marketing, an 'India ready' tourism workforce, visa settings and greater connectivity. While the sector is private-led in both countries, government can play an important enabling role.
• We should use tourism to enhance perceptions of Australia in India as a welcoming, diverse and advanced economy.
• Favourable tourism outcomes can also build bridges in the broader bilateral economic relationship, by improving cultural literacy and facilitating face to face relationships.
• More direct flights between Australia and India are essential to building the tourism and broader economic relationship.

1.0 The macro story

Key judgement.

Rising household incomes and more accessible connectivity will continue to open up international travel to a larger proportion of India's population. Out to 2035, an estimated 70 million Indians will travel overseas. India's sizable worldwide diaspora and international student base will continue to provide a pull factor for visiting friends and relatives. Alongside this, affluent Indian travellers will seek premium and personalised experiences that exude cachet. Business travel will expand in line with commercial interests with the Meetings, Incentives, Conferences and Exhibitions (MICE) travel segment the most prospective. The next generation of Indian travellers will be younger, more gender-balanced and be less likely to travel in multi-generational family groups. Capturing a greater share of India's outbound travel market will help shore up the long term prospects of our tourism sector. By 2035, there is potential for expenditure from Indian travellers to Australia to increase from $1.5 billion to $6.1 billion in a moderate case, or up to $9.1 billion in an aspirational case. More direct air services are crucial to the development of this market.

1.1 Scale and key structural drivers of the sector

Indian demand.

India is one of the world's fastest growing outbound travel markets

• in 2017, 23 million 50 Indians travelled overseas, with this figure expected to approach 70 million by 2035.

Growth in India's outbound tourism market is driven by

• rising personal income levels and changing lifestyles for the burgeoning consumer classes
• affordable airfares and diverse travel packages
• India's 30 million 51 strong diaspora and international student base which serves as a pull factor for those visiting friends and relatives (VFR).

There are two distinct types of Indian holiday-makers:

• the number of high net worth individuals (HNWI) in India is expected to triple, from 400,000 in 2016 to over 1.2 million by 2030 96
• The Cost-Sensitive Traveller: with past international travel experience typically limited to Asia-Pacific destinations, more likely to be VFR than a pure leisure traveller, expects Indian food options, longer but budgeted trips, with a dispersal radius of two to three metropolitan cities.

On the business side, India's outbound MICE travel segment is projected to grow at an average of 22 per cent annually, generating around 30 million outbound travellers by 2030. 52 There is an increasing propensity for Indian MICE travellers to be accompanied by spouses and children and combined with short leisure trips.

In India, travel is increasingly perceived as a demonstration of success. The status offered by travel varies by destination. Travel within Asia is the first threshold, out-of-region travel exudes greater clout including to countries in North America, Europe and, to a slightly lesser extent, Australia.

Supply drivers (making it easier to travel)

Technology-led travel research and booking platforms are increasingly accessible to the average Indian consumer

• depending on familiarity with international travel or the destination, travel agents are engaged at a later stage of the decision cycle (if at all).

Greater aviation connectivity out of India is making travel more convenient

• international airfares represent around 25–30 per cent of tourism budgets; savings can be used to upgrade experiences on the ground
• the entry of low cost carriers for short haul destinations has opened up international travel to new demographics and income groups in India
• the Government of India is seeking to remove limits on air services capacity – as announced in 2016 through India's National Civil Aviation Policy which proposed reciprocal open skies air services agreements with countries beyond 5,000 km from New Delhi.

The ability to use the Aadhaar card (a national biometric identity card) or voter card as proof of identity in India is improving ease of obtaining and renewing passports

• only 5.5 per cent of India's population held a passport in 2017 54
• for example, if voluntary access to individual biodata on the Aadhaar card were negotiated it could improve confidence in Indian documentation and facilitate faster visa processing.

Australia's competitive advantage

Australia is one of the world's leading tourism destinations, ranked seventh on the Travel and Tourism Competitiveness Index Ranking 2017. In 2017, 8.8 million people visited Australia, and this figure could reach 20 million by 2035. 55 The sector thrives due to comparative strengths:

• world-class natural beauty and wildlife are consistently reported as the most important factors for Indian holidaymakers 56
• safety and value are the next most important factors for Indian holidaymakers
• provision of alternative tourism options like cruise shipping, adventure sports
• culinary experiences from different cultures
• mix of sophisticated urban centres and wide-open spaces.

Australia has a substantial and growing Indian diaspora and student cohort to draw VFR travellers

• Australia's Indian diaspora has trebled over the decade to 2017
• in 2017, there were more repeat visitors to Australia from India than first time visitors. 55

Visitation from India to Australia has grown strongly over the past decade (to 2017) at an average rate of 12.7 per cent per annum, with spending growing by 15.1 per cent per annum

• in passing the 300,000 visitors milestone in the year ending 2017, the Indian tourism market has already surpassed the 2020 targets set under the Tourism Australia India Strategic Tourism Plan
• this would make India our second fastest growing inbound tourism market (behind China), and fourth largest market in aggregate 57
• by 2035, expenditure by Indian visitors to Australia is expected to reach $6.1 billion in a moderate case and up to $9.1 billion in an aspirational case.

1.2 How the sector will likely evolve out to 2035

Global trends in the tourism sector will affect indian and australian markets.

The growing global middle class will fuel international travel and tourism

• with good English language skills, Indian middle class travellers can gain independence from guided tour groups, leading to an increase in free and independent travelling 58
• as the global population becomes more urbanised, natural attractions will become increasingly important for those seeking a unique holiday destination
• visitors will demand more authentic experiences reflecting local culture rather than curated experiences manufactured by tour operators (these preferences are already exhibited by India's small but growing young and independent travel market).

Technology will keep empowering consumers

• tourism will continue to be a buyer's sector with the onus on providers to meet heightened consumer expectations and deliver tailored offerings (for example, communicating in Indian languages).

The shared economy will threaten traditional modes of hospitality

• hotels are not expected to regain market share lost to Airbnb and are being driven to offer services on new and dynamic platforms.

As a labour intensive sector, automation will transform how tourism services are delivered. Automation will disrupt the pre-booking stage and will also be increasingly visible at destination

• for Indian tourists who are accustomed to overservicing in their domestic lives, loyalty could be enhanced for tourism operators able to retain a human touch
• engaging with the community is a quintessential part of the tourist experience and will see enduring value placed on human touch in service delivery (for those prepared to pay).

Big data will enable in-depth analysis of visitor preferences and behavioural patterns, enabling customisation at lower cost.

More hotels will evolve into multi-activity complexes, where accommodation sits alongside a range of leisure, sport, casino, convention, retail, dining and entertainment facilities

• for example, Barangaroo in Sydney, Aquis Resort in Gold Coast, and Queen's Wharf in Brisbane are following leaders in Dubai, Singapore and Hong Kong in hotel diversification.

The rise of virtual reality tours and 3D simulations could become an affordable alternative for those unable to afford to travel physically

• this technology could also be used for marketing destinations and enhancing on-the-ground experiences.

Changes in workplace communications and digital connectivity are changing the need to travel internationally for business, particularly at lower and mid-management levels

• growth is expected from MICE events rather than from individual business travellers over the long term.

CASE STUDY: Tourism Australia: Bollywood star tours Australia

Bollywood star Parineeti Chopra is young, enthusiastic and a popular household name across India. Tourism Australia has tapped into her networks to connect with the rapidly increasing number of Indians looking to travel overseas.

In-bound tourism from India is a high-growth market for Australia, with this strategy projecting the market to be worth over 9 billion by 2035.

As a signed-up 'Friend of Australia', Parineeti visited Central Australia and the Gold Coast in September 2017, posting photographs and positive descriptions of her experiences.

Parineeti's 13.1 million followers on Instagram watched her helicopter flight over Uluru and her gleeful response to seeing dolphins and whales on the Gold Coast.

Tourism Australia has found a trusted local voice and a celebrity who creates headlines. A 10 day visit to Australia by Ms Chopra generated media coverage reaching an audience of more than half a billion, the equivalent of spending more than $4 million in advertising.

Tourism Australia built on this success, when Parineeti returned in April 2018, visiting Sydney, Melbourne and the Whitsundays in Queensland, popular destinations for Indian tourists.

For a relatively modest investment, Tourism Australia has significantly increased awareness of Australia in India, and maintained a healthy growth in visitor numbers from this market.

India's domestic tourism ambitions

Tourism forms part of the Indian Government's mainstream agenda – in recognition of its importance for employment (particularly for young adults and women), promoting social cohesion domestically and projecting images of India's modernisation to the world

• annual inbound tourists to India are forecast to increase from 10.2 million in 2017 to 15.3 million by 2025–26 (excluding returning diaspora). 50

To spur visitation and attract private sector investment, the Indian Government has launched schemes such as Swadesh Darshan 59 , National Mission for Pilgrimage Rejuvenation and Spiritual Augmentation, expanded e-tourist visa facilities and relaxed coastal land and air regulation.

Indian Government policies persuading the country's cash-based economy to embrace digital payments will have a positive long term effect on tourism, lifting confidence to move across tourism supply chains, and book and pre-pay holidays online and on mobile platforms.

Changes in Australia's tourism sector

Australia will need to make supply-side investments to support the expected increase in global visitors, including in:

• the tourism workforce, which is expected to become more stretched as Australia's population ages and pay and conditions in the tourism sector fail to attract sufficient local employees 60
• high-end experiences, retail, gambling and entertainment offerings
• regional transport infrastructure upgrades and expansions.

Australia will keep transitioning to the new market of travellers from Asia over historically important sources in the United Kingdom, United States and Europe. 61 This will drive:

• culturally appropriate training for tourism workforce, noting tastes and language differ across Asia
• the expansion of more popular Asian retail and food chains into Australia.

There will be heightened attention on preservation. Climate change, extreme weather events and pressures of increased tourist traffic could limit access to Australia's iconic natural attractions.

There is a perception Australian tourist visas are difficult to secure. Looking ahead, Australia's visa system will be transformed to make it more responsive to our economic, social and security interests and to enhance the client experience. This includes:

• investing in innovative visa processing and facial recognition technologies
• improved service delivery, including a shift towards a digital visa processing platform
• simplification of existing, highly complex visa arrangements.

2.0 Opportunities for partnership

The Indian diaspora and student cohort will support the dominance of VFR travellers, repeat trips, and Australia literacy. Growth potential exists in luxury travel niches. In a status-driven market, effective brand ambassador choices can bring immediate uplifts. As a relatively high-cost destination, Australia must compete on a value basis. In the medium to longer term, opportunities will emerge in business and MICE travel and in two-way investment in tourism infrastructure.

2.1 Export opportunities

Attracting holiday visitors.

The range of measures to attract holiday visitors include:

• continuing to use our shared passion for cricket to promote the broader tourism relationship, particularly in the short to medium term
• increasing the number of Indian honeymooners, capitalising on the alignment between Indian wedding season and peak travel period for Australia 62
• destination weddings are rising in popularity within the high net worth individual market
• Indian weddings typically involve multiple events over a number of days and large wedding parties
• the proportion of visitors from Asia travelling as backpackers has increased from 1 per cent to 6 per cent in the past decade 12
• however, there are constraints to growing this market – Indian youth are not currently eligible for working holiday maker visas and it can be more challenging for single young people to get a visa.

Attracting business visitors

As India's commercial presence in Australia grows there will be opportunities to broaden business travel and events, including through coordination with convention bureaus

• MICE travel opportunities could take a sectoral approach, particularly those with a large sales focus (IT, pharmaceuticals, financial services and insurance). 63

Australian convention bureaus have the potential to set up a presence in India, similar to bases in China, Hong Kong, Japan, United States and United Kingdom. This could then connect with Australian retail outlets already present in India that focus on servicing corporate clients.

2.2 Collaboration

Australian airports, with State Governments, could consider:

• partnering with airlines of regional hub countries to target Indian travellers
• international competitors in Europe already offer temporary waivers or discounts on hangers, landing fees and check-in leasing arrangements to entice pilot routes.

Incentivising Bollywood film production in Australia could help promote Australia to both the mass market and HNWI

• Spain, Israel, Czech Republic and Singapore have successfully offered filming package incentives to lure Bollywood production
• at least 10 Bollywood films have been totally or partially shot in Australia since Salaam Namaste in 2005, and a number of Indian soaps have featured Australian themes and episodes.

Vocational Education and Training

Training can provide a pathway for Indian hospitality workers to crossover from the informal to formal economy domestically. There is an opportunity for Australian VET providers to develop and deliver industry-led curriculum in India

• this could focus training on the mid-tier segment in which Australia has significant experience [ see Chapter 3: Education Sector ].

Other collaborations

Other collaborations could include further leveraging existing points of market recognition, including:

• this can play a powerful role in marketing the quality of Australian produce and wines to India; with scope to pair with food destinations.
• there is an opportunity to add female cricketers to Tourism Australia's 'Friends of Australia' ambassador program, or leverage the presence of Australian cricketers across Indian cities during the Indian Premier League in April-May each year and Indian cricketer presence in Australia during Big Bash League in December-February to promote Australian tourism.

2.3 Investment

Investment in australia.

There is an opportunity for Indian international food chains to expand their presence into Australia

• Indian food chain outlets are already appearing in Western destinations.

There is an opportunity for upmarket Indian international hotel chains to follow outbound visitors to Australia, as has been the case for the Taj Group and Oberoi Group with Indian visitors in Southeast Asia 12

• the demand for upmarket hotels is expected to increase
• while the value proposition model employed by upmarket Indian hotel chains is labour intensive and difficult to sustain in Australia's relatively high labour cost environment, automation of customer care, reception and concierge services at hotels could see this model shift in the medium to long term
• franchise agreements, to lease affiliation with an Indian brand and fitted to an existing hotel can reduce the risks of greenfield investment.

Investment in India

India is seeking investment in its tourism sector and has lifted the FDI cap to 100 per cent. Notwithstanding the constraints and challenges, opportunities include:

• investment is also being sought for theme parks, convention centres and the cruise market 12
• the success of REITs in India has driven property sales by hotel chains, whereby the hotel building is sold and leased back under management contracts, with investors immune from short term fluctuations in occupancy rates and profits.

CASE STUDY: Accor Hotels: Making Indian tourists feel welcome

As India grows wealthier, international travel is growing too. Passenger arrivals in Australia have been increasing rapidly, with over 300,000 Indian arrivals in 2017. Spending was also up by 15 per cent to $1.5 billion.

Australia's biggest hotel operator AccorHotels is positioning itself to meet this increasing demand, and has created a market leading Optimum Service Standards program for Indian visitation. These standards are to make Indian tourists to Australia feel welcome and comfortable.

The Optimum Service Standards program has been designed to better address the specific lifestyle and cultural needs of Indian travellers, to ensure premium comfort when holidaying in Australia.

Accredited AccorHotels' have adopted services to meet the needs of the Indian travel market which includes the translation of hotel welcome kits, menus and business cards in Indian languages, Indian meals in the restaurant, Indian adaptor plugs, TV channels and newspapers to make guests feel at home.

AccorHotels is seeing an increase in the Indian inbound market from both the leisure travel and conferencing and incentives markets. Their areas to focus on over the coming years will be Indian travel dispersal to other regions in Australia.

Since launching these standards in 2016, the number of Indian guests staying at AccorHotels has grown. This includes guests travelling for leisure, conferences and as part of customer incentive programs.

AccorHotels partnered with the Australia India Travel and Tourism Council to endorse the standards, which it now plans to extend to more hotels in regional Australia.

3.0 Constraints and challenges

Australia is seen as a difficult long haul destination given limited direct flights and perceptions of lengthy and variable visa processing. The challenge will be developing an India literate workforce and viably delivering on expectations of over-servicing from Indian tourists.

3.1 Ease of connectivity

Air India is the only direct flight provider, with eight flights (three Melbourne and five Sydney) to New Delhi per week. Qantas, Virgin Australia and Jet Airways serve the Indian market through code-sharing arrangements via a hub outside India

• Sydney Airport identifies India as its most under-served market, with five of its 16 under-served cities worldwide located in India (Mumbai, Bengaluru, Hyderabad, Chennai and Ahmedabad)
• air service agreements (ASAs) are not a short term deterrent to growth for direct flight routes (only 45 per cent of the 6,500 seats per week are being utilised)
• business travel is low on both sides, with business class typically providing a large portion of airline profits
• there is insufficient critical mass of leisure and VFR travellers from Australia to India outside of seasonal surge periods (December–February and May)
• to absorb demand fully, an increase in both direct and indirect flights is needed – through hubs like Bangkok and Colombo (Singapore and Malaysia have reached capacity under current ASAs for New Delhi and Mumbai)
• one enabler for more direct flights is if operators can more easily offer flights through Australia to other destinations, including New Zealand.

Visa arrangements and processing times inhibit spontaneous leisure and business travel where shorter lead times apply (for example, less than three months)

• since 2012, processing times for Indian tourist visa applicants have increased, in part due to higher lodgement rates
• the introduction in 2016 of online visa processing and faster fee-for-service options for Indian nationals is already helping
• reduced documentation, faster processing and multiple entry for low-risk cohorts are earmarked, but will take time to take effect in a market as large and diverse as India
• Australia should ensure India is a priority country when streamlined processes are phased in and that processing timelines are reduced.

3.2 Skills, infrastructure and other constraints

Low expenditure by those visiting friends and relatives

• VFR represented 41 per cent of arrivals to Australia from India in 2016–17, yet contributed only 14.8 per cent of total trip expenditure. Indian VFR travellers stay 50 per cent longer than the average non-Indian VFR to Australia, but spend almost 70 per cent less during their stay. Indian VFR have low rates of dispersal (one to two cities per trip), and around 95 per cent stay in private accommodation.
• no major international film production has occurred in Australia since 2010 without top-up grants.

Skills shortages in the Australian tourism sector could affect the visitor experience. An estimated 123,000 Australian tourism jobs are projected to be unfilled by 2020 and will challenge the ability of Australia's tourism sector to give visitors a world-class experience. Within the workforce, literacy of Indian culture, preferences and tastes is limited 63

• country-specific training in larger tourism operators has generally concentrated on China and Japan.

Australia lags key international competitors in the heavily contested leisure segment

• for Indian holiday-makers, Australia resonates with affluent and experienced out-of-region travellers but is perceived to be less prestigious than the United States, France, Italy, Switzerland and the United Kingdom 62
• Sri Lanka, Thailand, Singapore and United Arab Emirates are the top destinations for Indian MICE travellers, supported by direct flight routes, geographic proximity and facilities to cater for 1,000+ size delegations.

Business travel to Australia is nascent (at only 13 per cent of total visitation) and not yet supported by strong and broad Indian commercial presence. Marketing to this group has been reactive, rather than through a deliberate strategy.

Australian infrastructure needs investment

• for example, cruise ship terminals at Sydney and Brisbane are approaching capacity, while facilities at Cairns, Augusta, Hobart, Broome, and Port Hedland are in need of upgrades or expansions to the wharf to sustain visitor economy. 61

The online presence and digital capabilities of the Australian tourism sector (particularly SMEs) is improving but remains low. This affects the capacity for businesses to link into centralised booking sites and engage with the tech-savvy younger Indian audience through mobile platforms.

Australian investors have shown limited interest in investing in India

• the business environment, difficulty navigating state and federal approvals processes, and land acquisition regulations remain a concern
• while other Asian markets, such as Singapore, Hong Kong and Malaysia are seen as more lucrative for comparable return, at lower risk.

4.0 Where to focus

Engagement with the Central Government is important for any issues pertaining to aviation access, visa policies and biometric data. To bring travellers from India to Australia it makes sense to target cities with high numbers of outbound travellers and good connectivity. Tier one cities offer established markets, tier two cities offer growth potential.

Tourism strategies for India typically focus on cities because Indian international travellers tend to be from urban centres, with a tertiary qualification and a relatively good command of English.

Around 85 per cent of all visitors to Australia in 2017 originated from India's 10 wealthiest states: Maharashtra, New Delhi, Karnataka, Tamil Nadu, Andhra Pradesh, Punjab, Kerala, Gujarat, Telangana and West Bengal, with visitation patterns correlated strongly to tier one cities with gateway airports

• the typical Indian traveller to Australia is an affluent member of a tier one city, all with major international airports: New Delhi, Mumbai, Bengaluru, Chennai, Hyderabad and Kolkata
• but tier two cities like Jaipur, Ahmedabad, Cochin and Amritsar are emerging as important source markets for outbound travel from India and should be targeted in the medium to long term.

Australia should seek to stimulate demand in the Indian market while also seeking to improve the supply offering to the Indian market. Recommendations on visas appear in Chapter 16: Trade Policy Settings .

Though ASAs are not inhibiting aviation capacity in the short term, no Australian carrier currently flies directly to India.

The Australian Government should encourage Australian and Indian carriers to increase direct air services between the two countries.

Australian airports should explore options to increase incentives for Indian airlines to use Australian airports, or for third country airlines if they are connecting directly from India.

The Australian Government should consider increasing aviation access to additional regional Indian tier two cities under air service negotiations, with a mind to opportunities evolving out to 2035.

India's economic outlook, the maturity of its out-of-region travellers, and ensuing opportunities for Australia, have changed since the development of Tourism Australia's India Strategic Tourism Plan in 2012. Within government and across industry, there are gaps in the understanding of trends unique to India. In Australia, tourists from India are perceived as a low-spending and a demanding market for which to cater. Better understanding of the different preferences of HNWI and VFR holiday-makers and the influence of the diaspora could support more effective targeting of segments.

• this would complement the Tourism 2020 review currently underway and the Beyond 2020 Strategy under development.
• on regional dispersal initiatives for Indian travellers to Australia
• on leveraging off the international student cohort
• on the contribution of the Indian VFR segment, capturing spending of hosts and cumulative spending of returning VFRs over time
• on why conversion between aspirational demand to actual visits for MICE travel is not higher (for example, impact of visa processing, direct flight availability versus facility and venue constraints).
• with a focus on pairing analysis between combinations of Indian and Australian capital cities, and onward connection to third market destinations (such as New Zealand and the United Kingdom).
• either increase allocation of funding to Tourism Australia for additional marketing activity in India, potentially through the establishment of a country-specific India Tourism Fund
• or consider options for a review of Tourism Australia's existing budget to increase Australia's marketing impact in India
• continuing to harness the influence of celebrity endorsements on this market by recruiting high profile Australia brand ambassadors
• supporting further partnership arrangements with Tourism Australia between two or more Australian states to promote tailored tourism packages for the luxury leisure segment.
• continue to seek to coordinate marketing between Tourism Australia and State Governments with the marketing budgets of Australian airports.
• 39.3 Ensure new scalable marketing ploys (for example, virtual reality tours and 3D simulations) are provided in the appropriate Indian languages.

Repeated Bollywood and Indian vernacular film production in Australia has the benefits of generating short term uplifts in tourism; setting up early association of romanticism and adventure with Australia for India's next generation of travellers; and stimulating collaborations with our domestic film industries. Australia's natural landscapes and urban centres have appealed to Indian production houses, but the lack of incentives in a relatively high production cost market is a deterrent. There are several avenues the Australian Government can explore to address this.

• the location offset (a 16.5 per cent tax refund)
• the production, digital and visual effects (PDV) offset (a 30 per cent tax refund)
• the Producer Offset (a 40 per cent tax refund for feature films)
• concluding the bilateral AVCA means India would qualify for the Producer Offset for official joint productions
• alternatively, to increase either the location or PDV offsets for India current Australian budget rules require budgetary offsets to be identified.
• for example, 'one-off' benefits and top-ups that have been offered to foreign film productions in the past and should be considered where there is strong alignment between proposed film and niche leisure markets (destination wedding, honeymoon, cruise, sports and adventure).
• 40.3 Austrade should support film and production house familiarisation exchanges, as well as tours of prospective shooting sites and facilities.

There are currently no Australian tourism training programs tailored for the inbound Indian market, but there are precedents for such programs for other markets. For example, in 2017 Austrade provided support to the Australian Tourism Export Council and TAFE NSW to deliver training to Chinese-speaking tour guides, within the confines of the Approved Destination Status scheme.

• this could be undertaken through a tender process allowing for a consortium of commercial stakeholders (VET providers and Indian partners) to put forward innovative proposals
• the Australia India Tourism & Travel Council has industry-wide links and should act as an advisory body.
• establish an online request-for-proposal portal through Business Events Australia for Indian business event planners to submit their requirements
• including a database of event planners, unique experiences and event cities for planners and links for spin-off leisure activities for delegates.

A constant flow of people is required for a stable and enduring economic partnership, including through people to people links, cultural exchange and knowledge transfers. We therefore have an interest in encouraging more Australians to visit India for leisure and business purposes. India is keen to learn from Australia's experience to develop its domestic inbound tourism market. We should use this opportunity to counter perceptions Australia is commoditising Indian tourists without due reciprocity.

• seek to broaden industry representation at the Joint Working Group, beyond aviation, to reflect wide touch points of the tourism sector (for example education and training; sports and agriculture).
• continuing to share experience from Tourism 2020 design, implementation, tracking and industry engagement to support India's development of its own tourism strategy
• engagement between Australian tourism researchers and Indian Government agencies, researchers and policy groups to share research and data, highlighting the contribution of tourism, trade, investment and international education to their respective economies
• share experiences on regulatory mechanisms that provide access to, yet conserve, world heritage assets – this should involve collaboration with states
• engaging with India on the parameters for accessing Aadhaar biometrics to support more efficient visa processing.
• 42.3 Prioritise tourism in future Australia Business Week in India (ABWI) delegations and better align ABWI with Tourism Australia's annual India Travel Mission.

CHAPTER five Agribusiness Sector

Chapter seven energy sector.

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• Leaders Speak
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• India's travel and tourism sector poised for growth: Projected revenue to reach USD 23.72 bn by 2024

The total FDI inflows in India for the fiscal year 2023-2024 stand at a USD 17.96 billion, with USD 11.54 billion attributed to FDI equity. This announcement comes as the nation charts a course towards bolstering its tourism industry, positioning it as a major contributor to economic growth and job creation.

• Updated On Apr 16, 2024 at 01:37 PM IST

New York City expects 65 million visitors this year with over 3.8 lakh visitors from India

New York City is home to the world’s busiest airport system and the number one port of entry for US international travellers. New York City welcomed a total 61.8 million travellers in 2023, marking a recovery of 93 per cent of the City’s record 2019 visitation levels. New York City welcomed 336,000 India travellers – marking full recovery of the market’s pre-pandemic visitation levels.

• Published On Apr 16, 2024 at 01:36 PM IST

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