Unbelievable! Here's how much Indians spend every month on foreign travel
According to experts in the travel sector, some of the most preferred destinations by Indians are Europe, Thailand, Indonesia, Dubai and Vietnam.
FollowIndians are spending nearly USD 1 billion monthly on foreign travel, which is significantly more than the pre-Covid levels, reveals Reserve Bank data on outward remittances.
The external transfers made by resident individuals under the Liberalized Remittance System (LRS) for "travel" for the April–December 2022–2023 period totalled USD 9.95 billion. According to RBI data, the travel expenditures in 2021–22 were USD 4.16 billion and USD 5.4 billion in the year before COVID.
The outward remittances towards travel were USD 7 billion in the 2021-22 financial year.
"Indians are roaming across the world with their families or friends. Vietnam, Thailand, Europe, and Bali are some major destinations that Indians prefer," said Sapan Gupta, Partner, We3Online.
Europe, Indonesia, Vietnam, Thailand, and Dubai are India's top travel destinations. According to Akash Dahiya, co-founder of SanKash, the travel sector is seeing enormous growth in foreign places due to technological developments and more economical travel.
"Seventy-five per cent of our portfolio is now opting for international travel. We are witnessing a surge in demand for places such as Europe, Bali, Vietnam, and Dubai among Indians," he said.
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Dahiya further said travellers have become accustomed to the concept of "travel-now-pay-later", which allows them to make booking closer to the date and pick up a destination that otherwise is out of their pocket.
"Thus, paying for a travel experience in a monthly payment plan makes the holiday bite-size. Thus, a person looking for Goa can now go to Thailand, and a person planning for Thailand can opt for the far east and likewise," he added.
Meanwhile, the government in the Union Budget proposed to hike the TCS rate on overseas tour packages from the current 5 per cent to 20 per cent from the next fiscal.
According to experts, the move may impact Indians' international travel. According to RBI data, the amount spent on international travel dropped significantly to USD 3.23 billion in 2020–21, primarily due to limitations put in place after the Covid-19 epidemic.
The outward remittances towards travel were USD 6.95 and USD 4.8 billion in 2019-20 and 2018-19, respectively.
(With inputs from PTI)
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