With the fear of the pandemic firmly behind us, the world is travelling again--with greater urgency, meaning, and mobility than ever before. From ancient cities to hidden ecological gems, international travel is booming across continents. Airports are buzzing, hotels are filling up, and visa requests are surging—clear signs that global tourism is not only back, but also powering a new chapter of economic revival. The surge in global mobility has come as a major relief to the global travel and tourism industry and has acted as a catalyst of economic resurgence across many parts of the world.
Tourism (Shutterstock)
According to the latest World Tourism Barometer from UN Tourism, an estimated 1.4 billion tourists travelled internationally in 2024 marking a 99% recovery to pre-pandemic levels. This represents an increase of 11% over 2023, or 140 million more international tourist arrivals. But beyond the numbers lies a more profound transformation: tourism is no longer just a leisure industry—it’s become a socio-economic engine, a soft-power strategy, and a technology-led frontier.
Recent projections indicate that the global travel and tourism industry is poised to reach $ 3.4 trillion, growing at a healthy CAGR of 8.4% from 2024 to 2029. Its overall contribution to global GDP is expected to hit $ 15.9 trillion in the same period, reflecting its expanding footprint across both developed and emerging economies. It’s like a new era has begun for the global travel and tourism industry.
This robust turnaround has positively impacted many parts of the world including India. The West Asia with 95 million arrivals remained the strongest-performing region when compared to 2019, with international arrivals reaching 32% above pre-pandemic levels in 2024. Europe, the world's largest destination region, saw 747 million international arrivals in 2024 (+1% above 2019 levels and 5% over 2023) supported by strong intraregional demand. Asia and the Pacific continued to experience a rapid recovery in 2024 as well. And this robust recovery trend continues in 2025 too.
The resurgence in travel and tourism has created ripple effects across industries--from hospitality and retail to transportation and visa processing. In the process, it has led to job creation, both directly and indirectly, thus uplifting the regional economies that are dependent on inbound traffic.
India’s tourism sector, rich in heritage, culture, and diversity, is emerging as a global favourite and a key driver of economic growth. Recognising its potential for employment-led development, the Union Budget 2025-26 has allocated ₹2541.06 crore to enhance infrastructure, skill development, and travel facilitation. A major initiative includes developing 50 top tourist destinations in partnership with states through a challenge mode, ensuring world-class facilities and connectivity.
From spiritual tourism in the heartlands to business travel across urban hubs, India is becoming a favourite destination for global travellers. India’s Medical Value Travel (MVT) sector is witnessing significant growth. The market, valued at $2.89 billion in 2020, is projected to reach $13.42 billion by 2026, driven by increasing foreign patient arrivals seeking high-quality and cost-effective treatment.
India, long admired for its cultural and geographical diversity, is thus poised to become a global leader in tourism by enhancing infrastructure, boosting employment, and promoting diverse tourism segments, including spiritual, medical, and heritage tourism.
India has put in an efficient visa system and consular service delivery, which has attracted global tourists to the country. In a hyper-connected world, global tourists seek seamless and fast visa services, making travel a burden-free experience rather than a burden. India has successfully delivered this valuable service.
Technology has become the game-changer in providing effective and time-bound visa services, thus making lives easier for discerning travellers. The integration of Artificial Intelligence (AI), automation and biometric solutions has helped the visa processing firms to reduce turnaround times, arrest fraudulent activities and ensure a smoother travel experience.
As global mobility is on an uptick, governments across the globe are relying more on tech-enabled partners to manage higher volumes of visa processing without compromising on security and giving a smooth user experience. The firms working in this domain have embraced technology and created a helpful ecosystem for the tourists. In the process, travelling to India and immersing in its culture and diversity has become easier for inbound tourists.
As a key driver of economic growth, the tourism sector not only promotes development but also improves the quality of life by creating various job opportunities. It acts as a catalyst for regional economic upliftment as remote parts of the country, which are rich in culture and heritage, draw the attention of tourists. Many small-scale and cottage industries thrive on tourism, and for these units, tourism acts both as a source of income and employment.
Many villagers are now also setting up homestays, encouraging eco-tourism and also creating a source of earnings for themselves. Sustainability has become the buzzword in the global tourism circles, and many small towns and villages in India are riding this green mobility resurgence, making tourism a major employment generator in the remote parts of the country.
The tourism industry in the country is in a transformative era, shaped by demographic shifts, evolving technologies, and the pressing need for sustainability. As younger generations shape the future of travel with digital-first, experience-led preferences, the industry must evolve to meet rising expectations with smarter, more responsive services. The growing accessibility of AI, particularly Generative AI, promises operational efficiencies and a more personalised traveller experience, especially for those who can update their technology, teams, and thinking to harness it.
Looking ahead, tourism is expected to become one of the country’s largest employment generators, with projections suggesting the need for over 61 lakh additional workers by 2036–37 as per CII-EY report. With a strong momentum already underway, the sector is well positioned to contribute not only to economic growth but also to social equity, regional development, and global integration.
This article is authored by Shikhar Aggarwal, joint managing director, BLS International Services Ltd.
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