Surya Narayan

The global tourism landscape is witnessing a significant surge in Indian outbound travelers, with projections indicating the market will reach USD 55.39 billion by 2034. This burgeoning segment presents a substantial opportunity for countries seeking to bolster their tourism sectors. Cambodia, with its rich cultural heritage and historical landmarks, stands to gain immensely by attracting a larger share of Indian tourists. However, current statistics reveal that neighboring countries are capitalizing more effectively on this market. It is imperative for Cambodia to implement strategic measures, such as visa fee waivers and enhanced marketing efforts, to increase its appeal to Indian travelers.

Current Landscape of Indian Tourists in Southeast Asia

In 2023, Cambodia welcomed 68,836 Indian tourists, approximately 91% of its pre-COVID figures from 2019. Between January and June 2024, this number reached an impressive 32,000-33,000, representing a 17% year-on-year increase. While these figures indicate a positive trend, they are modest compared to the influx of Indian tourists in neighboring countries.

• Thailand: The Tourism Authority of Thailand (TAT) celebrated the arrival of the 2,000,000th Indian tourist on December 16, 2024, underscoring India’s significance as a key source market. Indian travelers have contributed over THB 63 billion (approximately USD 1.8 billion) in revenue in 2023.
• Malaysia: Between January and November 2024, Malaysia achieved its target of welcoming 1,009,114 Indian tourists, marking a remarkable 47% growth compared to the same period in 2019. This surge has significantly boosted Malaysia’s tourism revenue, with Indian tourists contributing substantially to the economy.
• Singapore: By the end of 2024, Singapore anticipates exceeding 1.2 million Indian visitors, with a 12% increase from the previous year. India has now become Singapore’s third-largest source market for tourism, reflecting the country’s effective strategies in attracting Indian travelers.
• Vietnam: In 2023, Vietnam welcomed 392,000 Indian visitors, with projections nearing 500,000 in 2024. This growth highlights Vietnam’s rising popularity among Indian tourists and its successful promotional efforts.
• Indonesia: Buoyed by impressive growth in Indian tourist arrivals in the first seven months of 2024, Indonesia has set an internal target to welcome one million Indian tourists in the coming years. This ambitious goal underscores Indonesia’s commitment to tapping into the Indian outbound tourism market.

Economic Contributions of Indian Tourists

Indian tourists are known for their substantial spending, which significantly contributes to the economies of host countries. In Thailand, for instance, Indian travelers’ spending amounted to over THB 63 billion (approximately USD 1.8 billion) in 2023. Similarly, Malaysia and Singapore have reported significant revenue generated from Indian tourists, reflecting the high spending power of this demographic.

Visa Policies: A Decisive Factor

Visa facilitation plays a crucial role in attracting tourists. Thailand and Malaysia have implemented visa-free entry policies for Indian tourists, allowing stays of up to 30 days. These measures have made travel more convenient and appealing, leading to increased tourist arrivals.

In contrast, Cambodia currently requires Indian travelers to obtain a visa, either on arrival or through an e-visa system, with a fee of USD 30. While the process is relatively straightforward, the additional cost and procedural steps may deter potential visitors, especially when neighboring countries offer more accessible entry options.

To enhance its appeal to Indian tourists and compete effectively with neighboring countries, Cambodia can consider the following strategies:

1. Visa Fee Waiver: Implementing a visa-free entry policy or waiving visa fees for Indian tourists could significantly boost arrivals. The success of such policies in Thailand and Malaysia demonstrates their effectiveness in attracting tourists.
2. Targeted Marketing Campaigns: Launching promotional campaigns tailored to Indian travelers, highlighting Cambodia’s unique cultural heritage, historical sites, and affordable luxury experiences, can create a compelling narrative that resonates with this demographic.
3. Enhanced Air Connectivity: Collaborating with airlines to increase direct flight options between major Indian cities and Cambodian destinations would facilitate easier travel and attract more tourists.
4. Cultural Festivals and Events: Organizing events that celebrate both Cambodian and Indian cultures can create a sense of familiarity and interest among Indian tourists, encouraging them to explore Cambodia.
5. Strengthening Tourism Infrastructure: Investing in infrastructure that caters to the preferences of Indian travelers, such as Indian restaurants, multilingual tour guides, and culturally sensitive hospitality services, can enhance the overall visitor experience.

Cambodia Must Focus on Cities Like Bangalore, Mumbai, Chennai, Hyderabad, Pune, Noida, and Ahmedabad with Direct Flights to Get More Tourists

To maximize its potential in attracting Indian tourists, Cambodia should prioritize establishing direct flight connections with major metropolitan and emerging urban centers in India, such as Bangalore, Mumbai, Chennai, Hyderabad, Pune, Noida, and Ahmedabad. These cities are characterized by a young, dynamic population with increasing disposable incomes and a growing appetite for international travel. As economic hubs, they boast some of the highest per capita incomes in the country, driven by industries like IT, finance, and manufacturing.

This demographic not only has the financial capacity to explore new destinations but also actively seeks culturally enriching and experiential travel opportunities. Direct flights from these cities to Phnom Penh or Siem Reap would enhance accessibility and convenience, positioning Cambodia as an appealing choice among Southeast Asian destinations. By targeting these high-potential markets, Cambodia can tap into a lucrative segment of Indian outbound tourism, significantly boosting its visitor numbers and revenue.

The rising number of Indian outbound tourists presents a lucrative opportunity for Cambodia to invigorate its tourism sector. By adopting strategic measures such as visa fee waivers, targeted marketing, and infrastructure development, Cambodia can position itself as a preferred destination for Indian travelers. Learning from the successes of neighboring countries, Cambodia has the potential to significantly increase its share of the Indian tourism market, thereby boosting its economy and fostering cultural exchange.

References

1. “Thailand surpasses Malaysia, Vietnam, and Singapore with 28.5 million tourists in Southeast Asia, topping the chart by attracting new Indian tourists.” Travel and Tour World.
2. “Indian Visa-free Access To 32 Countries Surging Tourism Industry including Malaysia and Thailand, surpassing Singapore and Indonesia.” Travel and Tour World.
3. “Cambodia Visa On Arrival – Fees & Required Documents for Visa.” BankBazaar.
4. “Cambodia Visa for Indian citizens | Online Application.” Cambodia-Visa.com.

Photo Credit: https://turuhi.com/story/intriguing-facets-of-angkor-wat