According to Mastercard’s latest review on consumer spending and travel trends, metro cities such as Delhi, Mumbai and Chennai continue to see higher spend from foreign travellers coming to India. Looking at the outbound travel trends from India, Dubai, London and Singapore remain popular destinations for Indian tourists.
Aggregated and anonymised data collected by the Mastercard Economics Institute for its first issue of ‘India Gazette’ revealed stark difference in travel spending by foreign tourists and Indian tourists travelling abroad. While travelling abroad, the wallet share of spend by Indians is higher on hotels, electronics and gifts than what a typical traveller would spend from rest of the world. Whereas foreign tourists in India are spending less on hotels and more on apparel, electric appliances, gifts, and jewellery.
In the first issue of Mastercard India Gazette, the company explored the revival and growth of tourism along with increase in spend per card and digital adoption across industries.
The increase in the economic activity and less acute cost of living shock has led to lower evidence of trading down brands and stores than what is seen globally. Segments that are showing increased spend according to Mastercard include education services, gifts, hotels, and groceries. India also witnessed a significant increase in digital adoption, with consumers across demographics ordering everything online.
India inbound tourism spendings
Metro cities of Delhi, Mumbai, Chennai continued to see largest spend from foreign tourists as on December 2022, while tier 1 and smaller cities of Hyderabad, Ahmedabad, Lucknow seem to be gaining popularity.
Mastercard data mentioned that the wallet share of spend for these travellers seems to have moved away from hotels and restaurants to clothing and gifts/jewellery. Spend in India on apparel, electric appliances, gifts and jewellery is much higher than what tourists typically spend in other countries.
India outbound tourism spendings
While travelling abroad wallet share of spend by Indians is higher on hotels/motels and restaurants & bars than electronics, gifts, and departmental stores. This is also more than what a typical traveller would spend from rest of the world.
Lower shocks to income, resilient domestic demand and policy support had enabled India to stand out as a bright spot amongst the rest of the world grappling with generational high inflation, interest rates and an ensuing cost of living crisis. India’s South Asian neighbours presented a grimmer picture with depleting forex reserves led by depreciating value of their currencies, higher import bills due to high energy and food prices, low inward remittances, and tourism.
According to Mastercard data, tourism recovery in Maldives has been exceptional. The island nation witnessed higher inbound tourism than pre-pandemic levels both in terms of number of arrivals and number of night bookings.