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01 February 2025

India Aims To Boost Tourism With New Policies

Government initiatives target visa reform and infrastructure development to revitalize visitor growth.

The Indian government is taking bold steps to revive and energize the nation’s tourism sector, which has faced challenges since the pandemic. Recent announcements reveal new policies and proposals aimed at enhancing tourist experiences, attracting foreign visitors, and improving overall infrastructure.

One major initiative is being championed by the Goa government, which is actively seeking to implement visa-on-arrival facilities for tourists from select countries. According to sources, the proposal will soon be forwarded to the Central government to facilitate this request. This move is seen as part of broader efforts to bolster tourism and reverse the perception driven by negative social media narratives about the state’s tourism industry. Goa’s tourism stakeholders argue, “Tourism is not a zero-sum game,” and stress the need for progressive policies to capture the market share lost to competitor destinations like Thailand and Sri Lanka.

Goa also seeks to introduce ‘digital nomad visas’, aimed at attracting professionals who wish to live and work remotely. A government official, speaking on the condition of anonymity, stated, “Many foreign tourists who visit Goa are unable to work in the state since they are on a tourist visa,” highlighting how this proposed policy could encourage longer stays and increased spending.

Complementing Goa’s efforts, Finance Minister Nirmala Sitharaman announced during the Union Budget 2025-2026 both visa fee waivers and the introduction of e-visa options for certain tourist categories. This initiative intends to attract substantial tourist groups and to significantly boost employment opportunities within the sector. The budget outlines plans to develop 50 of India’s top tourist destinations in collaboration with state governments through challenge-based initiatives, thereby creating jobs and promoting sustainable tourism.

The growth of the tourism sector is evident from the increasing numbers of visitors—the latest statistics indicate India’s tourism industry is currently valued at $256 billion, with visitation spending rising by 15% since 2019. Domestic tourism remains the cornerstone of the industry, yet the push for international tourism remains strong.

According to government reports, tourism contributes 5% to the nation’s gross domestic product (GDP) and employs approximately 45 million people. With the intention of solidifying India’s position as a competitive tourist destination, the government is focusing on enhancing travel experiences. Sitharaman’s announcement stated, “The initiative is aimed at boosting tourism and employment,” firmly placing job creation at the forefront of strategic development plans.

Visitor data shows signs of recovery, with over 1.04 crore tourists visiting Goa alone in 2024, compared to 86.28 lakh in 2023. This includes 4.67 lakh foreign tourists, up from 4.52 lakh the previous year. Nevertheless, these figures still trail behind the pre-pandemic era, when foreign tourist arrivals reached over 9.34 lakh.

Local leaders, such as Santosh Sangam Divkar, president of the Small and Medium Hoteliers Association, express concerns over the current tourist climate. Divkar pointed out during recent discussions, “Many Southeast Asian countries are now offering visa-on-arrival. If we have to compete, we have to make sure foreign tourists can easily apply for visas online,” underscoring the need for quicker processing times and less cumbersome application procedures.

India’s ranking on the global tourism stage also offers insights. The country was recently positioned 39th on the Travel and Tourism Development Index by the World Economic Forum and ranks 24th for foreign tourist arrivals according to the UNWTO Barometer, indicating there is work to be done to bolster its attractiveness.

Another major proposal within the Union Budget involves enhancing MUDRA loans for homestay businesses, which could directly support local tourism by providing alternative lodging options for travelers. With the push for infrastructure improvement and financial incentives, the Indian government is determined to position its tourism industry for recovery and growth.

While projecting optimism on various fronts, it is important to acknowledge the long road of recovery tourism has to traverse post-pandemic. The emphasis on easing travel restrictions, revamping visa policies, and boosting promotional campaigns will play pivotal roles as India strives to reclaim its status as a premier global destination.

The amalgamation of local appeals for reform from states like Goa and overarching governmental programs conveyed through the Union Budget points to a comprehensive approach to rejuvenate the tourism sector. With these new policies, the government hopes to attract both domestic and international tourists, thereby fostering economic growth and enhancing visitor experiences for years to come.