NEW DELHI: Tensions between India and Bangladesh have led to a reduction in visas for both sides, causing foreign tourist arrivals to fall by more than 9% to 9.02 million in 2025, with the eastern neighbor slipping from the second to the fifth largest source of tourists.The latest official figures estimate tourist arrivals in Bangladesh at 470,000 in 2025, down 73% from the previous year. The decline of 1.28 million visitors exceeded the decline in the total number of foreign tourists for the year, which was 930,000.Travel industry insiders are not really complaining about this decline as they have always questioned the inclusion of Bangladeshi arrivals in FTA figures as most of them are coming for non-tourist purposes such as medical and work and are not exactly filling hotels and queuing up at tourist attractions.
On the other hand, outbound arrivals from India increased by 6.6% in 2025 to a record Rs 33 crore, although there was a decline in the number of trips to Saudi Arabia and the United States. The number of Indians flying to Canada also fell by nearly 16% last year to 800,000.“While domestic air tickets are reasonably priced during non-peak seasons, India has outstripped itself with star-rated hotel prices. As a result, the Indian middle class now finds it cheaper to go to places like the UAE, CIS countries, Sri Lanka, Thailand, Vietnam and Malaysia than to domestic destinations like Goa or Kerala. Foreign tourists have found cheaper options than us,” said a leading travel agency.Many frequent travelers to India say they can buy a “good” hotel room in these places for 5,000-8,000 rupees, whereas in India this price at least doubles during the off-season and can increase several times during the peak holiday season.When asked about high tariffs, a leading hotelier said: “Business travel is increasing in India and domestic travel remains strong. So, we have no reason to worry about foreign tourists flocking to our hotels before they are full. The demand for luxury accommodation far outstrips the supply and this imbalance will ensure good yields (rates) for big hotels here.” Indian airlines are also expanding mainly on foreign routes to cash in on the boom in outbound travel.
