Indian prime minister Narendra Modi’s appeal to avoid non-essential outbound travel and weddings has prompted debate over its potential impact on the tourism sector.

Modi on Sunday (May 10) urged citizens to adopt a range of austerity measures while addressing a public gathering in Secunderabad, Telangana. These included reducing fuel consumption, increasing the use of public transport, limiting spending on gold, and avoiding non-essential overseas travel and weddings for a year. He noted that discretionary international travel adds pressure on foreign exchange reserves amid ongoing global uncertainty.

While expressing support for the government’s efforts to navigate the global energy crisis linked to tensions in West Asia, stakeholders in India’s tourism industry also highlighted the sector’s vulnerability during such periods.

Ashwani Gupta, managing director, Dove Travels, said: “Such statements can have a significant negative impact, creating uncertainty around future travel and holidays. Airfares are already dearer due to the Middle East crisis with fares to Europe more than doubling. At a time like this, such remarks further dampen sentiment.”

Shares of InterGlobe Aviation, the parent company of IndiGo, declined by 4.93 per cent on May 11 on the National Stock Exchange of India. Meanwhile, Easy Trip Planners also saw its share price fall by 3.51 per cent during the same trading session.

The Outbound Tour Operators Association of India (OTOAI), in a statement, expressed support for the government and the vision outlined by Modi, while also raising concerns over the livelihoods of thousands of travel professionals and allied service providers who rely on outbound tourism. The association has initiated efforts to seek an audience with the Prime Minister’s Office to present the industry’s concerns.

“If high-spending Indians choose domestic destinations and venues, it directly boosts local tourism, hospitality and wedding market. It is also a forex saver at a time when the rupee faces pressure. Post the PM statement there could be an uptick in bookings for destinations like Goa, Rajasthan, Kerala and Andamans. Hotels, resorts and wedding venues in India could see higher demand, especially in the luxury segment,” said K Vijay Mohan, managing director, Holiday World.

According to the Navigating Horizons: The Rise and Future of Indian Outbound Tourism report, jointly prepared by Nangia NXT and FICCI in 2024, the Indian outbound market is expected to reach US$55.39 billion by 2034.

“While the PM statement may influence short-term sentiment, it is unlikely to change the long-term growth trajectory of Indian outbound travel. Indian travellers today are globally aware, aspirational and increasingly experience-focused. Travel is no longer viewed purely as a luxury but also as an important part of wellness, business, education and cultural engagement,” said Harjit Singh, founder and chief of guest experience at Travel Twist.