Tourism and Luxury Shopping
Will India be the leading nation of the future?
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White-Paper-Indian-tourism-in-Italy-3.pdfTourism and Luxury Shopping
Will India be the leading nation of the future?
White Paper Summary: Indian Tourism Trends in Italy
India, with nearly a billion voters and a fast-growing economy, has emerged as a key geopolitical player. It ranks first in the Global Innovation Index in Central & Southern Asia and houses the world's third-largest startup ecosystem.
India's ambitious journey to revolutionize its infrastructure and its robust partnership with Italy have fostered economic collaboration and cultural exchange. These factors contribute to the increasing interest of Indian tourists in exploring Italy.
Indian Tourism as an Emerging Market
The long-term analysis from 2008 to 2023 highlights significant growth in Indian tourist demand, interrupted only by the Covid-19 pandemic. From 2008 to 2019, Indian tourist arrivals in Italy increased from 160,000 to 593,000, with a growth rate of +4.3% for arrivals and +12.0% for stays. The pandemic caused a severe drop in 2020, but demand recovered by 2022, reaching 53.3% of pre-pandemic values.
In 2023, Indian tourist demand showed an average growth rate of +22.3%, with a peak during the winter months. This trend indicates a positive response despite economic and bureaucratic challenges, such as rising prices and complex entry procedures.
Travel Preferences of Indian Tourists
Indian tourists predominantly choose art cities like Rome, Venice, and Milan, focusing on famous landmarks. This limited diversification is typical of emerging markets. The preferred travel periods are spring and autumn, with peaks in demand at the end of the year and during specific holidays.
Indian tourists mostly travel as couples, who tend to stay longer (3.6 to 4.3 days) compared to families and groups. The Booking Window for Indian tourists is around 120-130 days, indicating that trips are planned well in advance.
Tax-Free Shopping Trends
Tax-free shopping has seen a significant rise, with 2023 being a record year. Indian tourists, predominantly young but with those over 45 spending more, have shown increasing interest in luxury fashion. Milan and outlets like Fidenza Village are top destinations for Indian shoppers, who value exclusive services and cultural experiences. Sustainability is also an important factor for Indian tourists.
Flight Habits
Post-pandemic recovery in air traffic from India to Italy is promising, with a steady increase in Indian passengers. Direct flights have become more common, reflecting the rising interest of airlines in this route. Indian tourists tend to prefer direct flights, and their overnight stays in Italy are above the Western average.
Evolution of Indian Tourist Segmentation (2017-2023)
The segmentation of Indian tourists has evolved significantly. In 2017, business travelers and families dominated the market. By 2023, personal trips, especially for sightseeing in art cities, surpassed business travels. This shift indicates an increasing importance of Indian tourists in the leisure sector.
The Indian tourism market in Italy has shown steady growth and resilience, despite the challenges posed by the pandemic. The characteristics of Indian tourists, with a preference for longer stays and multi-destination itineraries, provide valuable insights for tourism operators. The concentration of demand on iconic destinations is expected to diversify over time as the market evolves. Continuous monitoring and a flexible strategy are essential to meet the needs and trends of Indian tourists, ensuring that Italy remains an attractive destination.
The authors are responsible for the choice and presentation of the facts contained in this document and for the opinions expressed therein, which are not necessarily those of Tourism and Society Think Tank and do not commit the Organization, and should not be attributed to TSTT or its members.
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