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IATO Seeks ₹1,000 Crore Support for Inbound Tourism Revival

Written by: Team Angel OneUpdated on: Jun 3, 2025, 12:34 PM IST
IATO has urged the government to allocate ₹1,000 crore and form a tourism board to revive foreign tourist arrivals, still below pre-COVID levels.
IATO Seeks ₹1,000 Crore Support for Inbound Tourism Revival
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The Indian Association of Tour Operators (IATO) has requested a ₹1,000 crore allocation from the central government under the Incredible India campaign. Reports suggest that in a letter addressed to Prime Minister Narendra Modi, the association also proposed the formation of an India Tourism Board to be led by the PM, aimed at increasing foreign tourist arrivals (FTAs) in the country.

Foreign Tourist Arrivals Below Pre-Pandemic Levels

According to the India Tourism Data Compendium 2024, India recorded 9.52 million FTAs in 2023. This remains below the 2019 figure of 10.93 million. IATO has noted that the recovery in FTAs has been slow and emphasised the need for government intervention ahead of the upcoming tourist season.

IATO Proposed Measures 

IATO has recommended that ₹1,000 crore be set aside immediately to strengthen promotional campaigns and tourism infrastructure. The association has also requested the establishment of a centralised tourism board to oversee strategy, coordination, and implementation focused on attracting international travellers.

Focus Areas: Visas and Connectivity

In addition to funding, IATO highlighted the need to simplify visa processes. Suggestions include expanding e-visas, fast-tracking group tourist visas, and offering visa fee waivers for certain countries. The association also pointed out that improved air connectivity is essential for driving tourism, particularly to Tier-II and Tier-III cities. It proposed offering incentives to international airlines and charter services to support this.

Read more: Kashmir Offers Heavy Discounts to Bring Back Tourists After Pahalgam Attack!

Industry Context

Tourism contributes directly to foreign exchange earnings. Spending by foreign tourists is considered a form of export that is not subject to tariffs or trade disruptions. According to IATO, this makes inbound tourism a stable source of income and employment for the country.

Conclusion

With the next tourist season approaching, IATO has urged the government to act quickly. The proposed measures are intended to support a quicker recovery of FTAs and boost India’s position as a travel destination in the international market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 3, 2025, 12:34 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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