Congress MP Shashi Tharoor has highlighted significant challenges facing India's tourism sector, arguing that the nation's high costs make it less competitive than destinations like Thailand. Speaking to the Indian diaspora in Thailand, Tharoor emphasized the need for comprehensive reforms to attract more international visitors.
India's Cost Disadvantage in Tourism
Tharoor pointed out the irony that despite Thailand having a higher per capita income, it remains a significantly cheaper travel destination for tourists than India. "Thailand is historically very much cheaper to visit for a tourist than India is... we should actually be cheaper than you," he stated. He attributed this cost disparity partly to structural issues, including floor space regulations that drive up hotel accommodation prices in India.
"I've written articles advocating some changes that would make hotel rooms more affordable than they are right now. Largely because we have a series of floor space index problems, which means that the available land is being used for fairly low-level building spaces. And so each room constructed has to charge more to break even than in many countries," Tharoor explained.
Policy Reform and Infrastructure Needs
To address these issues, Tharoor called for financial, tax, and policy changes aimed at making travel to India more affordable. He stressed that while the government has a crucial role in improving infrastructure and easing regulations, direct tourism promotion might be better handled by the private sector.
India's foreign tourist arrivals stood at 9.95 million in 2024, still below pre-pandemic levels. In stark contrast, Thailand welcomed over 35.5 million international tourists in the same year, significantly exceeding India's numbers. Tharoor starkly illustrated the gap, noting that "Bangkok gets in one month more tourists than the whole of India gets in a year."
Private Sector for Marketing, Government for Foundations
While acknowledging successful government initiatives like Amitabh Kant's "Incredible India" campaign, Tharoor suggested that marketing and selling tourism packages should primarily be the domain of tour operators and private industry players. "The truth is, bureaucrats are not great at this stuff," he remarked.
Instead, he advocated for the government to focus its efforts on foundational improvements: enhancing infrastructure at tourist sites, ensuring better sanitation and waste disposal, and tackling issues like hawking and begging. These measures, combined with tax incentives, could make India a more viable and attractive destination for both operators and tourists.