South Asia's Tourism Growth Driven by Experiential Travel Trends

Overview of South Asia’s Tourism Outlook

South Asia is increasingly impacting the global tourism landscape, according to Scott Wegener, Head of Asia Pacific at Tripadvisor. Addressing the audience at ITB India 2025, he outlined the region’s critical role in this growth.

The Shift towards Experiential Travel

The global experiential travel market is currently valued at $250 billion and is expected to nearly double by 2032, reaching approximately $470 billion. This estimation relies on revenue from bookable tours and experiences, excluding additional spending around these activities.

Wegener discussed trends in what South Asia travelers are looking for, focusing on experience-driven travel:

South Asia currently represents 10% of the global market value, projected to rise to 15% by 2032. This shift means potentially $70 billion in revenue for the region.
Data from recent surveys reveals that 85% of global travelers consider activities central to their travel budget.

Prioritizing Activities and Experiences

In India, the numbers are even more compelling:

91% of Indian travelers recognize activities as vital to their travel plans.
Experiential travel, now viewed as essential, drives expectations and interactions.

Impact of the Pandemic

The COVID-19 pandemic drastically reshaped travel perspectives:

Travel is no longer seen as a given; it’s viewed as a privilege.
Digital fatigue has fueled a desire for human connection and meaningful experiences.
The rising middle class in India correlates with an increase in global exposure and shifts in travel behavior.

Gen Z and Millennials as Key Market Drivers

The future travelers will be dominated by Gen Z and millennials:

Collectively, they are set to account for 60% of South Asia’s travel expenditure.
These demographics prioritize experiences over mere transactions, seeking cultural immersion and local interactions.

Focus on Indian Market Trends

International Trends: Thailand, UAE, Vietnam, and Indonesia rank high among destinations for Indian travelers.
Domestic Trends: Cities like Pune, Rishikesh, and Mysore are gaining popularity, recognized for authenticity and slower-paced attractions.
Current trends indicate a strong inclination towards cultural landmarks as 75% of experiences booked by Indian travelers were related to heritage and cultural experiences.

In summary, the future of travel in South Asia is about deeper connections and meaningful experiences, with significant opportunities on the horizon.