India Has the Tourism Assets. So Why Is It Still Underperforming?

Part 1 of 3: The problem is not what India has. It is how difficult India can be to experience.

India should be one of the most powerful tourism destinations in the world.

Few countries can offer this combination within one national border: history, culture, food, wildlife, mountains, beaches, spirituality, architecture, wellness, festivals, luxury and adventure.

And yet the numbers raise an important question.

India recorded 9.95 million Foreign Tourist Arrivals in 2024.

Thailand received more than 35 million international tourists in the same year.

Vietnam received more than 17.5 million.

The comparison is not perfect, tourism statistics are defined differently across countries, but the scale of the gap is difficult to ignore. India is also not competing only with Thailand and Vietnam. For international leisure travellers, it competes in different ways with destinations such as Turkey, Indonesia, Morocco, Egypt, Mexico, South Africa and Sri Lanka.

These countries offer very different products, but they compete for many of the same travellers: people seeking culture, history, food, nature, beaches, adventure, wildlife, wellness and relatively affordable experiential travel. India arguably possesses a broader tourism inventory than most of them. So why does the conversion remain relatively weak?

Tourism Assets Are Not the Same as a Tourism Product

A traveller does not experience a country through tourism statistics. They experience it through hundreds of small interactions.

Can I get there easily?Can I understand the visa process? Can I find the correct taxi at the airport?Do I know what it should cost?Can I trust the driver?Is the public toilet clean?Can I walk comfortably around the destination?Are the signs understandable?Are opening hours accurate?Can I buy tickets easily?Can I pay digitally?Can I book the next part of my trip without making five phone calls?If something goes wrong, do I know whom to contact?

None of these questions sounds as important as the Taj Mahal, Goa, Kerala or the Himalayas.

But collectively, they determine whether a holiday feels effortless or exhausting.

That difference matters enormously.

A great attraction can create the desire to visit. A well-managed tourism product determines whether the traveller actually comes — and whether they return.

Tourism Has a Hidden Cost: Friction

We normally compare destinations by price. Flights. Hotels. Food. Transport.

But tourists experience another cost that rarely appears on a bill: Friction.

A more realistic tourism equation is:

Travel Cost = Money + Time + Uncertainty + Effort + Risk

Consider a simple example.

A ₹500 taxi ride can feel expensive if the traveller has to negotiate the fare, question the route and wonder whether they are being overcharged.

A ₹1,000 prepaid transfer with a clear pickup point and fixed fare may feel like better value.

The second journey costs twice as much.

But it creates far less friction.

The same principle applies across an entire holiday.

What Competing Destinations Get Right

Many of India's competitors have become extremely good at reducing friction.

Thailand: Convenience

Thailand's great advantage is not simply its beaches.

It is convenience.

A traveller understands the product almost immediately: Bangkok, Phuket, Krabi, Chiang Mai.

Hotels, transfers, tours, nightlife, food, spas and activities are relatively easy to discover, compare and purchase.

The tourism ecosystem does much of the work for the traveller.

Vietnam: Value + Simplicity

Vietnam has rapidly improved the same equation.

It received more than 17.5 million international visitors in 2024, up 39.5% from 2023.

Expanded air connectivity, easier visa access and stronger tourism promotion have helped make the country increasingly accessible. But the important point is not simply the growth rate.

Vietnam has become easier to understand as a holiday. Hanoi. Da Nang. Hoi An. Ho Chi Minh City. Phu Quoc. The traveller quickly understands what each destination offers and how it fits into the larger trip.

Turkey: Turning Culture Into a Clear Journey

Turkey has converted enormous cultural and historical depth into understandable travel circuits.

Istanbul → Cappadocia → Antalya

The journey is easy to visualise before booking. That matters.

Morocco: Selling an Experience, Not Just Attractions

Morocco packages architecture, markets, food, riads, desert landscapes and hospitality into a recognisable tourism proposition. A visit is not simply about seeing monuments.

The accommodation, food, streets, markets, cafés and experiences become part of the product.

South Africa: Selling Complete Journeys

South Africa successfully sells entire journeys rather than isolated attractions.

Cape Town → Winelands → Garden Route

The traveller understands the flow. City. Food. Wine. Coastline. Road trip. Nature.

Individual destinations reinforce one another.

Indonesia: Building Tourism Ecosystems

Indonesia has built Bali into something far larger than a collection of beaches and temples.

It is a complete tourism ecosystem:

• Hotels and villas

• Restaurants and cafés

• Spas and wellness

• Beach clubs

• Surfing

• Nightlife

• Shopping

• Local transport

• Tours and activities

• Experiences designed specifically for visitors

The traveller understands what they are buying.

That is powerful.

India Often Asks the Tourist to Assemble the Product

India has extraordinary destinations:

Delhi. Agra. Jaipur. Varanasi. Goa. Kerala. Ranthambore. Hampi. Ladakh.

But an international traveller often has to do considerably more work to understand the journey.

How should these places be connected?

How long do transfers actually take?

Which transport is dependable?

Which areas are comfortable to stay in?

Which guides are legitimate?

What should things cost?

Which attractions need advance booking?

How does local transport work?

Which information online is current?

The attractions may be world-class.

The journey between the attractions is where friction often begins.

And in tourism, every additional layer of uncertainty reduces conversion.

There Is Another Signal India Should Not Ignore: Indian Travellers Themselves

Indian outbound travel continues to expand.

Official tourism data shows 32.83 million Indian national departures in 2025, an increase of 6.3% year on year.

Increasingly, Indian travellers are choosing destinations such as:

Thailand, Vietnam, Bali, Dubai, Sri Lanka, Malaysia and Singapore.

Sometimes the international holiday is more expensive than travelling within India.

Yet many travellers still perceive it as better value.

Why?

Because value is not simply the amount spent.

It is what the traveller receives in return for the money, time and effort.

A foreign holiday may provide:

• A clean airport

• A predictable airport transfer

• A good hotel

• Clear pricing

• Reliable restaurants

• Walkable tourism districts

• Easy tours and activities

• Well-maintained public spaces

• Less negotiation

• Less uncertainty

• Less planning stress

That should be a very important signal for India's domestic tourism industry.

If an Indian traveller is prepared to clear immigration and take an international flight because the resulting holiday feels simpler, the problem cannot be explained by price alone.

India Does Not Have an Attraction Problem

It has an execution problem.

The difficult assets already exist.

The Taj Mahal already exists.

Rajasthan already exists.

The Himalayas already exist.

Kerala already exists.

Goa already exists.

Varanasi already exists.

Indian cuisine already exists.

Yoga and Ayurveda already exist.

India already possesses extraordinary wildlife, architecture, craftsmanship, religion, festivals and history.

Very few countries can create what India already has.

The challenge now is much more operational.

Make India Easier to Experience

Modern tourism is not simply about giving someone a reason to visit.

It is also about removing the reasons they might decide not to.

And some of the most powerful improvements may turn out to be surprisingly basic:

• Clean toilets

• Reliable taxis

• Clear prices

• Good signage

• Clean streets

• Accurate information

• Safe public spaces

• Easy bookings

• Predictable service

These are not minor details.

They are part of the tourism product.

The lesson is simple:

India already has the difficult part — the attractions. The next leap will come from making those attractions easier, cleaner, safer and more predictable to experience.

Coming Next: Part 2 — The Small Things That Are Costing India Tourists

Why toilets, taxis, cleanliness, signage, pricing, maintenance and basic destination management may produce a greater return than another tourism advertising campaign.