Domestic travel demand in India remains resilient despite the recent escalation in tensions with Pakistan, with players like Ixigo reporting a return to pre-conflict booking levels. However, inbound tourism has been hit and may take longer to recover, said industry leaders and government officials during a discussion on the sector’s outlook.
“We are extremely resiliant as a country. For us, our domestic bookings are back at levels similar to before the conflict. I don't think there is a safety or threat perception that people are feeling. But the inbound part could be where the imapct and perception may take some time to settle,” said Aloke Bajpai, Chairman, MD & Group CEO of Ixigo, speaking during a panel discussion at The Powering Bharat Summit 2025, organised by Network18 in collaboration with Moneycontrol, News18 India, and CNBC Awaaz, on May 16.
Suman Billa, IAS, Additional Secretary and Director General (Tourism), Ministry of Tourism, echoed this sentiment, saying that while there will be some disruption in the short term, the overall impact on the sector is likely to be limited.
“While the past couple of weeks will impact the tourism sector, India is in a good place,” Billa said.
“This is because we have a very stromg domestic demand… We have 250 crore people travelling domestically, and about 1.8 crore people coming into the country. So, there will be some impact, but it is going to be marginal,” he added.
Billa said the government sees tourism as a key economic lever for the future. “It has the highest potential to create jobs in the country. Today it supports 78 million jobs. If we work hard, we can generate another 25 million jobs in the next five years,” he said.
According to the Additional Secretary, the contribution of the tourism sector to India's GDP is currently about five percent, and the government should aim to double this figure over the next ten years.
"For this, the supply side needs to grow," he said.
Addressing recent boycott calls against Turkey, China, and Azerbaijan, Billa said the government does not interfere in travel choices.
“It is not the business of the government to tell the public or business where to send and where not to send people,” he said.
“But today, we are seeing a widespread public sentiment, which has reflected in the way several of our industry partners have seen a drop in demand.”
Bajpai, too, underscored the sentiment-driven nature of recent travel behaviour. “I wouldn't feel very safe travelling to countries who have supported our enemy states,” Billa added.
Ixigo was among the first Indian platforms to suspend bookings to Turkey and Azerbaijan in response to their perceived support for Pakistan during the conflict.
“We serve Bharat — in FY25 we had about half a billion Indian users. We felt like it was right thing to do as an Indian. In the good times is when we need to think twice about where our money is going and what causes it is supporting. It was a decision taken to respect the sentiments of millions of our users and for their safety,” Bajpai added.
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