PM Modi’s appeal likely to hit overseas travel demand

India’s travel industry is bracing for a potential slowdown in overseas tourism after Prime Minister Narendra Modi appealed to citizens to avoid unnecessary foreign travel amid rising global economic pressures and the ongoing Gulf crisis.Industry executives and analysts said the appeal could further dent outbound travel demand during the peak summer holiday season, which had already witnessed a decline in inquiries due to inflationary pressures and rising travel costs.
According to travel industry estimates, overseas travel inquiries for the current summer season have already fallen by 10-15 per cent compared to last year.“The prime minister has a great following, and people sometimes take his advice very seriously ... they may postpone it to next year,” said Ravi Gosain, whose organisation represents more than 2,000 members.The slowdown comes during the crucial April-June vacation period, when affluent Indian families typically travel to cooler destinations in Europe and Australia.

India's travel industry fears that an appeal by Prime Minister Narendra Modi to avoid unnecessary foreign travel will squeeze new bookings after inflationary pressure knocked down summer overseas inquiries by as much as 15%, industry and analysts say https://t.co/XTJH7Mm850

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The travel industry’s concerns are unfolding against a backdrop of rising global inflation and elevated crude oil prices, with oil trading above $100 a barrel after Iran closed the Strait of Hormuz, disrupting global supplies of oil and liquefied natural gas.In his recent remarks, Modi also urged citizens to reduce fuel consumption and avoid purchasing gold jewellery for a year in an effort to help lower India’s import bill amid the Gulf crisis.
The Prime Minister’s comments triggered a sell-off in travel-related stocks on Monday, with shares of companies such as EaseMyTrip,Yatra Online and Ixigo witnessing pressure alongside airline and holiday planning firms.Airfares have already surged as airlines increased fuel surcharges, making foreign travel significantly more expensive along with rising hotel and transport costs overseas.
India’s tourism sector, valued at around $231.6 billion and supporting nearly a tenth of the country’s jobs, is currently the world’s eighth-largest tourism market and is projected to become the fourth largest within the next decade.The outbound tourism segment alone is expected to expand to $55.39 billion by 2034 from $18.82 billion a decade earlier, according to industry estimates.
Sunil Kumar president of the Travel Agents Association of ⁠India, said Modi’s appeal may increase pressure on the industry to promote domestic tourism, which contributes only a small share of revenues for many travel agents. Industry bodies have also urged the government to strengthen inbound tourism to help offset foreign exchange outflows.India’s outbound departures rose nearly 6 per cent to 32.7 million in 2025, continuing a long-term growth trend driven by rising incomes, easier visa access and the influence of social media travel content.A report by Ernst & Young, citing brokerage firm Bernstein, projected that India could become the world’s fifth-largest outbound travel market by 2027, up from 10th place in 2019.While analysts believe Modi’s appeal is advisory rather than a formal policy shift, they expect short-term pressure on the travel sector.“This is definitely going to have an impact in the short to medium term,” said Kranthi Bathini. “But if there is a cool-off in crude oil prices, we can see a rebound.”