India was #2 US overseas tourism market in 2024

Brand USA reports that India is now the fastest-growing US tourism market, with 2.19M visits in 2024, up 24.3% from 2023 and displacing Germany as #2 overseas market - second only to the UK - and up 49% from pre-pandemic 2019.

Nonstop air capacity from India to the US was also #1 in growth between 2019 and 2024.

Traditionally, visa wait times have been the #1 obstacle to India-US travel, but in 2024 the US opened 250,000 visa appointments in India, and this month a new consulate opened in Bengaluru that will soon have visa processing available. The US issued more than 1 million non-immigrant visas in 2024.

Meet Boston CEO Martha Sheridan has reported that her city received 106,000 visitors from India in 2024, making the country Boston's #3 overseas market after the UK and China.

Northeast and Southeast doing well so far in 2025, West Coast less so

As we enter 2025, post-COVID US inbound travel continues to grow overall, but some regions fare better than others.

In part because travel to Europe and the Caribbean has become significantly more expensive since the pandemic, inbound travel to the Northeast and Southeast US - e.g., NYC and Miami - is growing strongly in 2025 from source markets that include Canada, Europe and Latin America.

With the USD at 0.98 Euro today, the US is looking especially good to residents of the Eurozone.

And US inbound travel from India is growing strongly - potentially by double digits in 2025 - as household incomes in India have grown.

But recovery of demand for US travel from traditional Asian markets China and Japan continues to lag, to the detriment of San Francisco and other West Coast destinations. The yen recently dropped to a 34-year low against the USD. If that situation continues, Japanese tourists could in the long term abandon Hawaii and California for lower-priced Asia-Pacific destinations.

How will US inbound trend in 2025 - overall and by region? Stay tuned.

China outbound travel surges in 3Q2024

Outbound travel from China surged in 3Q2024, largely driven by leisure travel abroad during the National Day holiday 1-7 October. Mainland Chinese residents took 7.59 million trips during that week, up 33.2% from National Day 2023, and international outbound flights were up 38.2%.

Alibaba reports that outbound bookings for 1-7 October were up more than 50% vs. 2023, and bookings of overseas hotels were up 20% vs. National Day week 2019.

Asia-Pacific destinations including Japan,Thailand and Singapore - which offer more varied experiences and lower shopping prices than China - were the major beneficiaries of the 2024 outbound surge.

Wealthy individuals from top-tier cities like Beijing and Shanghai were most likely to travel abroad during the National Day holiday, but bookings from 4th- and 5th-tier cities were up 100% from 2023.

Despite new policies making inbound travel easier and travel services accounting for 26.7% of China's service trade, high outbound travel spend resulted in a $140.5B trade deficit in 1H2024.

Comment: Note that USA wasn't a top destination during the National Day holiday. But maybe that's because a week is too short a time for a long-haul trip. Watch this space for updates.

Saudi Arabia adds visa options for Indians

As part of Saudi Vision 2030, the Kingdom aims to welcome 7.5M Indian tourists between now and 2030.

To facilitate that happening, the Saudi government has introduced multiple visa options for visitors from India:

Stopover Visa: Permits a stay of up to 96 hours, and is valid for 90 days. Available through the Saudia airline website for a small charge to cover admin fees and medical insurance. Requires relevant travel document and a flight ticket for a further destination.

E-visa: Available online from the Saudi visa portal to Indian citizens who hold (1) a valid tourist or business visa issued by the US, the UK or any Schengen country with an entry stamp from the issuing country or (2) a permanent residence visa from one of the GCC countries, if valid for at least 3 months from date of entry to Saudi Arabia. This is a multiple-entry visa that permits stays of up to 90 days and is valid for a year. Cost varies from approximately INR 7,568 to 10,997.

Visa-on-Arrival: Indian citizens who are eligible for the E-visa can also apply for a Visa-on-Arrival via land, air or sea. This is a multiple-entry visa, good for a year, that permits stays up to 90 days and costs approximately INR 10,685.

Tourism Visa: Indian citizens who don't meet the eligibility requirements for any of those 3 types of visas can apply through their nearest Saudi Embassy, Consulate or Tasheer Centre for a Tourism Visa. Cost is INR 7,010 and up. Length of validity, number of entries and days of stay are at the discretion of the embassy. Tasheer Centres are available in Ahmedabad, Bangalore, Kozhikode, Chennai, Cochin, Delhi, Hyderabad, Kolkata, Lucknow, Mumbai and Patna (more to be added soon).

More visa help is available here:

visa.mofa.gov.sa

or

vc.tasheer.com

Note that WTTC predicts that over the next 10 years India will become the world's #4 tourism market, sending more international visitors around the globe than any country except for the USA, China and Germany.

India is #2 US overseas tourism source market in 2024

Growth since January 2024 has now made India America's #2 overseas - i.e., international excluding Canada and Mexico - tourism source market after the UK.

In May 2024, 263,000 Indian tourists visited the US, up 32% from May 2023. India-US visits were up 37% in 2024 YTD as of 31 May.

New York is among the long-haul destinations most searched online by residents of India.

Factors contributing to the growth of US inbound travel from India include:

• Growth of the Indian economy, driven by increased disposable income
• Increased demand for luxury travel
• Increases investment in Indian airports, and growth in numbers of direct flights to US
• Indian interest in major sporting events like the FIFA World Cup 2026, to be held in North America

Since 2022, India has been the largest source of outbound travelers from Asia, eclipsing China, South Korea and Japan.

Outbound travel from India is projected to grow by a further 11.4% by 2032.