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Indian tourists visit Wat Benchamabophit in Bangkok. The Indian market is expected to expand by double digits this year. Chanat Katanyu
After securing solid growth from the Indian tourism market in the last two years while Asian markets stagnated, 2025 is an uncertain year for arrivals from the subcontinent as US tariff rates are expected to have an impact.
The Tourism Authority of Thailand (TAT) anticipates growth of more than 10% for the Indian market until 2026, after recording a surge of 14.4% to 1.3 million as of July 20.
Tourism growth has been sluggish for most Asian markets this year.
“We need a period after the new US tariff rates for India start on Aug 1 to gauge the impact on the Indian economy and tourism demand,” said Siriges-a-nong Trirattanasongpol, director of the TAT’s New Delhi office.
Last year, Thailand claimed a 6.15% share of the Indian outbound market, following the United Arab Emirates (25%), Saudi Arabia (11%) and the US (6.9%).
During an overseas market briefing held by the TAT last week, the agency dubbed this a “bittersweet year” for the Indian market as more countries step in to seize a share of the 30 million outbound travellers.
The potential of this market is huge as the number of Indians travelling overseas is expected to post annual growth of 8% and reach 39 million in 2028. Their expenditure is forecast to increase 9% annually through 2030, noted the authority.
However, the situation over the next 18 months has become more challenging as other destinations offer cheaper airfares on new routes with increased frequencies, matching some Indian preferences for “pocket-friendly” trips, said Mrs Siriges-a-nong.
According to the air tickets portal Skyscanner, flights from India to Almaty in Kazakhstan dropped by 44% in 2025, as well as to Jakarta by 27% and to Singapore and Kuala Lumpur by 19%.
Airfare cost influenced 62% of Indians’ travel decisions, compared with 65% for accommodation costs, while 50% of respondents chose hotel rooms that cost around 7,000 Indian rupees per night, or around 2,620 baht on average, according to Skyscanner.
For Thailand, the number of flights are projected to fully recover this year to the level in 2019 with 19,118 flights, rising 31.9% year-on-year for a capacity of 3.79 million seats. The Indian government already lifted restrictions on flight expansion to Thailand.
Eleven airlines operate direct flights from cities in India to three destinations in Thailand, with Bangkok accounting for 78% of the 374 weekly flights, while Phuket accounts for 19% and Krabi 3%.
“For the India market, it’s necessary to grow value with volume, stimulating more spending from both metro cities and more areas, as Thailand already has flights connecting 18 cities in India to three destinations in Thailand,” she said.
OFF THE RADAR
Mrs Siriges-a-nong said MakeMyTrip, one of the largest Indian agents providing market data, reported 23% of travellers have a preference for shopping and luxury, with Dubai and Singapore the most preferred destinations for these activities.
Searches for business-class flights in the international segment grew by 10%, according to the agent.
Unfortunately, Thailand is not yet considered a luxury destination among Indian tourists, she said.
Mrs Siriges-a-nong said Thailand still has room to grow the Indian luxury travel market as revenue from this segment is projected to reach US$124 billion by 2030, with a compound annual growth rate of 9.8% from 2024-2030.
According to the TAT, luxury tourists are mostly aged 35-65 and live in urban areas, taking 4-6 international trips a year. They are willing to spend for ultra-luxury travel, allocating more than $300 per day, noted the authority.
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