Panel rebukes India ministry for citing Bangladesh amid weak tourism performance

A parliamentary committee has rejected the Indian tourism ministry's explanation that political upheaval in Bangladesh was the primary cause of a decline in foreign tourist arrivals, saying the argument overlooks longstanding structural weaknesses in the sector.

Foreign tourist arrivals in India fell by 9.4% in 2025. The Ministry of Tourism attributed the drop largely to a 73.4% decline in visitors from Bangladesh, a key source market that typically accounts for 17–18% of total arrivals.

The ministry said arrivals from Bangladesh dropped from 17.5 lakh in 2024 to 4.66 lakh in 2025, following political upheaval that began in August 2024 with the ouster of former prime minister Sheikh Hasina. It argued that if Bangladesh were excluded, arrivals from the rest of the world grew by 4%, says the print.

However, the parliamentary panel described the explanation as "inadequate," pointing to deeper issues that have constrained India's tourism performance for years.

The committee noted that India's share of global tourism remains below 2%, despite the country ranking sixth worldwide in natural resources and ninth in cultural resources. It said the ministry's emphasis on a single external factor did not account for persistent underperformance.

Budget and promotion gaps

The panel highlighted what it called a "serious deficiency" in budget formulation, particularly in overseas promotion.

It noted that no funds were allocated for actual overseas promotion in the 2026–27 budget cycle, with the entire Rs 3.50 crore under that head earmarked for mandatory United Nations membership fees.

The committee also cited significant underutilization of funds. In 2024–25, the ministry spent only 6.6% of its total allocation, while its flagship infrastructure programme, Swadesh Darshan, recorded a utilization rate of 3.4%.

Project implementation was also slow, with about 84.6% of active projects under major schemes below 25% physical completion.

High costs and infrastructure constraints

The report said India faces cost and capacity challenges that weaken its competitiveness.

Wildlife tourism at destinations such as Ranthambore can cost Rs 8–10 lakh per visit, making it among the most expensive globally. The country also has only 1,80,000 branded hotel rooms—about half the required capacity—leading to room tariffs reaching Rs 12–13 lakh during major events.

Despite being the birthplace of Buddhism, India attracts less than 1% of global Buddhist pilgrims, reflecting what the committee described as missed opportunities in niche tourism segments.

Institutional shortcomings

The panel also raised concerns about governance a