Tourism industry suffering significant losses due to ongoing war in Middle East; what is the status of domestic tourism?
The tourism industry is suffering significant losses due to ongoing war in the Middle East. The World Travel and Tourism Council (WTTC) estimates that the global travel and tourism sector is incurring daily losses of approximately Rs 5,500 crore as a result of the US-Israel-Iran war.
Roughly half of all outbound travelers from India head to countries such as the UAE, Saudi Arabia, Qatar, and Oman. Of these travelers, approximately 40 percent visit for leisure purposes. A significant surge in bookings is being observed for countries such as Thailand, Malaysia, the Maldives, and Japan. Domestic tourism also continues to remain robust.
Experts and travel agents report that, currently, cancellation rates for travel to Gulf nations are hovering around 100%. If this trend persists, 2026 could prove to be an exceptionally strong year for India's domestic tourism sector. Travelers are actively exploring diverse tourism destinations located closer to home. "If the conflict is prolonged, people may pivot toward domestic destinations or unaffected international destinations."
Despite rising airfares, many tourists are prioritizing domestic destinations such as Kochi, Puri, and the Andaman Islands. Over the past few days, inquiries regarding domestic travel destinations have witnessed a surge of approximately 200%.