India’s inbound tourism shifts beyond traditional urban hubs, boosting regional economies

India’s inbound tourism is increasingly spreading beyond its major metropolitan centres, reflecting a structural shift in travel preferences and a wider economic impact, according to a report by the Mastercard Economics Institute . The institute is the research and analysis arm of Mastercard , providing data-driven insights on global economic and business trends, including tourism and consumer behaviour.

Supported by targeted policy measures, a favourable demographic profile, and rapid digitalisation, tourism is emerging as a key growth driver for India and the broader South Asian region. The sector is not only enhancing economic activity but also strengthening external stability, supporting local businesses and communities, and boosting domestic consumption.

After the steep decline in foreign tourist arrivals caused by the COVID-19 pandemic, India’s inbound tourism has shown a strong recovery. In 2019, India received about 10.93 million foreign tourist arrivals (FTAs). By 2022, FTAs recovered to 6.44 million as global travel resumed. In 2023, FTAs increased further to around 9.52 million, nearly 87% of pre-pandemic levels. In 2024, foreign tourist arrivals alone rose to approximately 9.95 million, indicating continued recovery but still marginally below the 2019 peak. Separately, when all inbound international travellers are counted, including Non-Resident Indians (NRIs), Overseas Citizens of India (OCI), and other non-tourist international visitors, India recorded over 20 million total inbound arrivals in 2024, surpassing pre-pandemic levels. In 2025, up to August, around 5.6 million foreign tourists had already visited India, reflecting sustained momentum during the peak travel season.

The Mastercard report highlights a distinct shift in the distribution of tourism across Indian cities. Delhi recorded a gain of 1.5 percentage points in its share of total tourism transactions between 2019 and 2025, making it one of the strongest performers. Traditional hubs such as Mumbai and Bengaluru saw declines of 0.6 and 1.0 percentage points, respectively, while Chennai experienced a marginal drop of 0.2 percentage points.

Smaller leisure and cultural destinations benefitted from changing tourist preferences. Goa and Rishikesh each recorded a rise of 0.6 percentage points, reflecting continued demand for beach and wellness tourism. Amritsar gained 0.3 percentage points, supported by strong inflows to religious and cultural landmarks like the Golden Temple. Other destinations such as Hyderabad, Munnar, and Ranthambore also posted modest increases, highlighting growing interest in urban exploration, nature, and wildlife tourism. Meanwhile, cities such as Jaipur, Agra, and Udaipur saw slight declines, and Thrissur remained largely stable.

The report emphasizes that this shift toward non-traditional destinations is helping strengthen local economies by supporting small and medium enterprises, generating employment, and boosting consumption-led growth. With ongoing policy support, digital infrastructure expansion, and strategic promotion of cultural and thematic travel circuits, tourism is set to play an increasingly strategic role in India’s economic diversification beyond its major metropolitan hubs.