Travel Drives India's International Spending to 10-Month High - India Report

24.09.2024 - 09:49 / skift.com / Bulbul Dhawan

$2.8 billion: That was the international spending by Indians in July 2024. It was the highest amount in 10 months and led by growth in travel spending: Data from the latest bulletin from India’s central bank showed that Indians spent $1.7 billion for travel. Last year, Indians spent $1.4 billion. 

For the 12 months between August 2023 and July 2024, it was the third-highest level, according to an analysis of the Reserve Bank of India (RBI) data. Last August, Indians spent over $2 billion on international travel, followed by $1.8 billion in September.

Travel accounted for about 60% of all overseas spending during the period, except for a dip in the January to March quarter.

More Spending on Travel: There has been an increase in overall spending on travel internationally. RBI data shows that in the 2022-23 financial year, travel spending accounted for 50% of all overseas remittance. The following year, it had increased to nearly 54%. Now it’s roughly 56%. 

This increase can be attributed to the increased purchasing power of the Indian travelers, as well as a boom in outbound travel. A recent report by Indian commerce body FICCI (Federation of Indian Chambers of Commerce & Industry) stated that India’s outbound tourism market will reach $18.8 billion in 2024, and $55.4 billion by 2034: an annual growth rate of over 11%. 

McKinsey and Company said that India has a fast-growing pool of first-time travelers, and the Organisation for Economic Co-operation and Development (OECD) said that outbound travel from India is emerging as the future growth engine for global tourism.

A report by payment network Collinson International earlier this month showed that Millennials in India are spending an average of $6,031 on travel annually, highest among any other generation. The next highest is Gen X at $3,059, followed by Gen Z ($2,622) and Boomers ($2,600).

The permission fees to hold weddings on the beaches of Goa has increased to INR 100,000 a day. The Goa Coastal Zone Management Authority (GCZMA) has made the decision after there was an increase in applications seeking permission for beach weddings. The new rates will apply to all private events, including weddings.

In May last year, the authority had raised rates for beach events to INR 100,000, but the fees then covered a five-day period for events. This means that the permission fee has increased five times for holding events in the coastal state. 

The state has, however, said that there will be a 75% concession for government corporations, autonomous bodies, charitable trusts, schools, and sports events. 

The Leela Palaces’ parent company Schloss Bangalore has filed for a massive IPO to the tune of $599 million (INR 50 billion). This is the largest-ever IPO in