IATO Calls for Formation of India Tourism Board with ₹1,000 Crore Budget to Boost Inbound Tourism, ET TravelWorld

The Indian Association of Tour Operators (IATO) has written to Prime Minister Narendra Modi, urging immediate intervention to revive inbound tourism by allocating a INR 1,000 crore budget under the Incredible India campaign and forming a central “India Tourism Board” under the Prime Minister’s leadership. The move comes in light of Foreign Tourist Arrivals (FTAs) in India remaining below 2019 levels during the last financial year.

Based on internal assessments and consultations with inbound tourism stakeholders, IATO has concluded that India continues to underperform despite its natural and cultural appeal. The letter highlights the urgency of action, pointing out that the upcoming season offers a narrow window to reverse this trend.

Ravi Gosain, President of IATO, said, “When global trade is facing unprecedented disruptions due to tariff wars and geopolitical shifts, tourism exports remain unaffected by such constraints. Unlike goods, India’s tourism export (i.e. foreign tourists spending in India), which is non-tariff based, brings direct foreign exchange earnings into the country. This positions inbound tourism as a stable, sustainable, and immediate contributor to India’s current account with valuable foreign exchange, employment generation and balances forex trade deficit. Yet, regretfully the country is lagging in its effort to attract foreign tourists.”He further added that inbound tourism has strong soft power implications. “Considering every foreign visitor to India becomes an ambassador of Indian culture, heritage, values and the immense multiplier impact it has in terms of employment generator and net revenue it earns, we still have not valued it as much as we should have. This sector alone has the potential to contribute 1–2 percent to the GDP and therefore this engine needs to fire,” Gosain stated.

“To enhance FTA numbers besides the steps suggested above. We need simplified Visa facilitation, expanding the scope of e-Visas, fast-tracking group tourist visas and exploring Visa fees waivers for select countries. Further we need to incentivise international airlines and air charters to improve air connectivity to key tourism circuits, especially in tier-2 and tier-3 destinations,” he concluded.

• Published On Jun 3, 2025 at 10:33 AM IST

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