New Delhi, April 24:
Escalating geopolitical tensions in West Asia are beginning to weigh on India’s travel and tourism ecosystem, with aviation, hospitality and inbound travel witnessing significant disruption, according to a new report by the PHD Chamber of Commerce and Industry.
Titled “Impact of the West Asia Conflict on India’s Tourism, Aviation & Hospitality Sectors,” the report outlines a sharp fallout on global mobility patterns, even as strong domestic travel demand offers partial relief.
Inbound Tourism Takes a Hit
The report notes that inbound tourist arrivals to India have declined by 15–20 per cent, reflecting reduced international travel amid uncertainty in the region. Industry stakeholders say long-haul travel sentiment has weakened, with safety concerns and rising travel costs discouraging foreign visitors.
Aviation Sector Faces ₹18,000 Crore Loss
More critically, India’s aviation sector is projected to suffer a net loss of around ₹18,000 crore. The losses are attributed to higher fuel costs, rerouting of flights to avoid conflict zones, longer flying times, and operational disruptions across key international corridors.
Airlines operating routes to Europe and North America have been particularly impacted, with extended flight durations increasing both fuel consumption and crew costs.
Hospitality Sector Under Pressure
The hospitality industry is also feeling the strain, especially in segments dependent on foreign tourists and business travel. Hotels in key metro cities and tourist hubs are reporting softer international bookings, although domestic travellers continue to sustain occupancy levels.
Domestic Demand Offers Cushion
Despite the headwinds, the report highlights that robust domestic tourism is helping cushion the overall impact. Increased intra-country travel, particularly during peak seasons, has provided some stability to airlines and hotel operators.
Call for Policy Support
The industry body has called for targeted policy interventions to mitigate the impact, including rationalisation of aviation fuel taxes, support for airlines facing cost pressures, and measures to boost inbound tourism once global conditions stabilise.
Outlook Remains Uncertain
While the long-term outlook for India’s tourism and aviation sectors remains positive, the report cautions that continued geopolitical instability could prolong disruptions.
As global travel networks adjust to the evolving situation, the extent of recovery will depend on how quickly tensions in West Asia ease and confidence returns to international travel markets.
