Synopsis- The tourism sector in India is experiencing an unprecedented growth in visitors, and some states are exceeding even millions and millions of visitors annually. With investments in infrastructure to protect the heritage items, along with investments into digital engagement and tourism products, most of these states have considerably increased their economic contributions and employment numbers.
India’s tourism industry has been booming, with several Indian states welcoming millions of domestic and foreign visitors every year. There are states in India that top this list with more than 650 million domestic and 3.39 million foreign visitors flowing into their states every year. Several government initiatives, diverse attractions, and improved infrastructure could be stated as major factors boosting these numbers. With millions of travelers moving into major cultural, spiritual, and natural landmarks, these states have positioned themselves as tourism powerhouses.
According to the latest India Tourism Data Compendium 2024, which is the most authoritative annual report published by the Ministry of Tourism, tourism in India had contributed approximately 32.2 billion dollars (foreign exchange earnings) in 2023. Lately, domestic tourist visits have soared even higher, while foreign arrivals have reached nearly pre-pandemic levels and have also boosted the states’ economies.
Leading Indian States by Tourism Revenue
1. Uttar Pradesh
- Tourist visits (2024-25): More than 650 million domestic visitors, making it the highest in India.
- Key attractions: Taj Mahal, Varanasi, Ayodhya, and other heritage circuits.
- Average tourist spends: Rs. 5,400 per overnight visit, creating a significant impact on local economies.
- State initiatives: Massive expansion in hotel infrastructure (1,00,000 rooms were added), tech innovations like facial recognition at heritage sites were introduced, and active promotion of rural and spiritual tourism was made. These kinds of initiatives are driving the state’s vision of becoming a 1 trillion-dollar economy.
2. Tamil Nadu
- Tourists arrivals: 286 million domestic tourists
- Key tourism products: Meenakshi Temple, Mahabalipuram, UNESCO World Heritage sites, Kanyakumari.
- Tourism drivers: Very strong focus on religious tourism, environmental tourism, and cultural tourism, Additionally, the tourism government policies have also supported the growth.
3. Maharashtra
- Arrivals of foreign tourists: 3.39 million, which is the highest share(17.6%) from the overall foreign visits to the country
- Domestic travellers: In excess of 136 million.
- Key tourism products: Mumbai, Ajanta-Ellora caves, Shirdi, Gateway of India
- Revenue considerations: being the hub for international flights, one of the strongest hospitality markets of the country, provides a vast, diverse range of tourism products, catering for city and heritage tourism.
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4. Gujarat
- Foreign tourists: 2.81 million.
- Domestic tourists: 165 million.
- Special strengths: NRI(Non-Resident Indian) diaspora visits, rich heritage(Rann of Kutch, Gir Forest), world-class business tourism infrastructure.
5. Karnataka
- Domestic travellers: 213 million.
- Key tourism products: Hampi, Mysore Palace, urban epicentre in Bengaluru and coffee planters.
- Growth and development: Some emerging interest in eco tourism, adventure and heritage tourism over the preceding years, receiving support in marketing, also with State polices to assist and promote tourism development plans.
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Other High-Earning Tourism States
- Rajasthan: Known for forts, palaces, and cultural festivals, which bring strong international revenue.
- West Bengal: Kolkata, Sunderbans, and heritage circuits attract both domestic and international visitors.
- Andhra Pradesh and Telangana: Spiritual and coastal tourism lead to high footfall, specifically coming from the Tirupati Temple.
| State | Domestic Tourists (Millions) | Foreign Tourists (Millions) | Major Revenue Sources |
| Uttar Pradesh | 650+ | 1.61 | Heritage sites, pilgrimages |
| Tamil Nadu | 286 | 1.17 | Temples, heritage, ecology |
| Maharashtra | 136 | 3.39 | City tourism, monuments |
| Gujarat | 165 | 2.81 | NRI, heritage, business |
| Karnataka | 213 | 0.65 | Heritage, eco, adventure |
| Rajasthan | 145 | 1.70 | Palaces, safaris, festivals |
| West Bengal | 88 | 2.71 | Heritage, festivals |
| Andhra Pradesh | 220 | — | Pilgrimage, beaches |
NOTE: Please note the data has been derived from the official government websites, therefore the “number of tourists” stands for the year 2023 unless indicated otherwise.
Revenue Generation Mechanism
- Accommodation: Hotels, resorts, and homestays have posed as a major source of revenue.
- Entry Fees: Most of the monuments, UNESCO heritage sites, and museums (e.g., Taj Mahal) have made sure to support in revenue generation.
- Local Experiences: Apart from the tickets and stays, other aspects of a vacation like fairs, festivals, culinary tours, and wellness tourism, have increasingly contributed to the overall spending by the tourists.
- Supporting Sectors: Several supporting sectors like- Transportation, retail, handicrafts, and even local markets, are supporting as well as benefitting from the local tourism.
Tourism’s Economic Impact
As per the latest report, Tourism can contribute around 5% of India’s total GDP either directly or indirectly, with the employment impact exceeding 76 million jobs nationwide. For Uttar Pradesh and Tamil Nadu, tourism revenue is now the key driver in the state’s economic development.
Growth Drivers for Tourism Revenue
- Infrastructure development- With new hotels, roads, and airports being built.
- Government Initiatives- Initiatives from the Government that supported heritage conservation, promoted festivals, and eco-tourism have increased revenue.
- Marketing and Digitization- Digital tracking, facial recognition, and AI to enhance visitor experience and manage tourists better.
Conclusion
India’s top five states for tourism revenue, Uttar Pradesh, Tamil Nadu, Maharashtra, Gujarat, and Karnataka have shown how future investment in infrastructure and digitisation, will positively boost tourism economics. With tourists now arriving in India in numbers never seen before whilst average spending has increased, these states have set the pace for the other states to contribute to India’s ambition to make tourism a large economic driver for the country.
Written by Adithya Menon
