Tourism’s next frontier is economic value, not visitor numbers

By Hemant Joshi, CEO of Atithi Foundation

For decades, tourism success was measured by a simple metric- the number of visitors a country attracted. Governments celebrated arrival milestones, airlines added capacity, and destinations competed for ever-larger tourist volumes. That metric is becoming increasingly inadequate. The countries that will define the next era of global tourism will not necessarily be those attracting the largest number of visitors; they will be those creating the greatest economic value from every visitor.

Mauritius offers an interesting example of this shift. While often associated with beaches and luxury resorts, its more enduring achievement has been treating tourism as an economic strategy rather than merely a hospitality sector. Over time, connectivity, destination quality, private investment, branding and visitor experience have reinforced one another to create an ecosystem that generates value far beyond tourism itself. That lesson is increasingly relevant globally, and particularly for India.

The first generation of tourism policy asked a straightforward question – how do we attract more visitors? The next generation asks a more important one- how do we create more value from every visitor? That shift changes almost everything.

Consider two destinations that each receive one million visitors a year. One attracts travellers who stay for two nights, spend modestly and leave. The other attracts visitors who stay twice as long, participate in local experiences, purchase local products, attend cultural events and return for a second visit. On paper, both destinations appear equally successful. Economically, they are worlds apart. Tourism policy must therefore move beyond measuring arrivals to measuring value creation.

This also changes how destinations compete. Visitors rarely remember destinations because they have one iconic monument or beach. They remember whether the destination worked as a complete experience. Mobility, public spaces, heritage, food, culture, retail, festivals, digital convenience and hospitality together determine whether visitors stay longer, spend more and recommend the destination to others. Around the world, successful tourism economies have recognised this. They no longer compete through attractions alone; they compete through integrated experiences.

It also changes where governments invest. Infrastructure remains essential, but infrastructure alone does not create competitive destinations. Countries that consistently outperform invest equally in destination management, market intelligence, coordinated governance, digital public infrastructure and strong public-private partnerships. Tourism is ultimately delivered by an ecosystem, not by a single ministry or department.

India’s tourism story is beginning to enter precisely this phase. India does not suffer from a shortage of tourism assets. It recorded nearly 2.9 billion domestic tourist visits in 2024, is home to 45 UNESCO World Heritage Sites, thousands of protected monuments, extraordinary biodiversity and one of the world’s richest collections of living cultures. The opportunity is no longer about discovering India’s tourism potential; it is about unlocking greater economic value from these assets.

India’s scale makes this transition particularly significant. Tourism already supports activity across transport, hospitality, retail, handicrafts, food services, culture, entertainment and construction. Even modest improvements in average visitor spending or length of stay can generate billions of dollars of additional economic activity while creating livelihoods far beyond the tourism sector itself. Tourism should therefore be viewed as a national productivity agenda rather than simply a destination marketing exercise.

This is also where the next generation of reforms becomes important. Around the world, successful destinations are organised around experiences rather than individual attractions. Heritage districts become places where history, cuisine, retail, culture and public spaces reinforce one another. Digital platforms simplify planning, payments and discovery. Destination management organisations bring governments, businesses and communities onto a common platform. Private investment complements public investment. The outcome is not merely better tourism; it is stronger local economies.

India should not seek to replicate another country’s tourism model. Its scale and diversity make that neither possible nor desirable. But the principles that underpin successful tourism economies are remarkably universal. Whether for a small island nation or a continent-sized country, tourism creates the greatest impact when institutions are strong, destinations are well managed, experiences are thoughtfully curated and the private sector becomes an active partner in development.

The future of tourism will therefore be defined less by who attracts the most visitors and more by who creates the greatest value from every visitor. India has the assets, the scale and the opportunity to lead that transition. If tourism is approached not merely as a sector but as a long-term economic strategy, it can become one of the country’s most powerful engines of investment, jobs, exports and inclusive growth in the decades ahead.