Fewer Bangladesh visitors, pricier stays push India’s tourism balance toward outbound boom

Diplomatic tensions between India and Bangladesh — which led to reciprocal visa curbs — dragged foreign tourist arrivals down more than 9% to 90.2 lakh in 2025, with the eastern neighbour slipping from India’s second-largest source market to fifth place.

Official data show arrivals from Bangladesh plunged 73% year-on-year to 470,000, accounting for a drop of about 12.8 lakh visitors — exceeding the total decline of 930,000 foreign arrivals recorded last year. Yet industry insiders say the fall is not entirely alarming, noting that many Bangladeshi visitors historically travelled for medical care, business or short-term work rather than leisure tourism.

At the same time, outbound travel by Indians surged 6.6% to a record 3.3 crore in 2025, even as trips to Saudi Arabia and the United States dipped. Travel to Canada also fell nearly 16% to about 800,000.


Travel agents attribute the shift partly to rising domestic hotel tariffs. They say India is “outpricing itself,” as middle-class travellers increasingly find overseas holidays — especially to the United Arab Emirates, Sri Lanka, Thailand, Vietnam and Malaysia — cheaper than trips to domestic hotspots like Goa or Kerala. Travellers say comfortable rooms abroad can cost Rs 5,000–8,000 a night, while comparable Indian stays often cost at least twice as much even in off-season.

Hoteliers, however, remain unfazed. Strong domestic and business travel demand — particularly in the luxury segment — continues to keep properties full, allowing operators to maintain high room rates. With demand outstripping supply at the premium end, they expect yields to stay firm.

Airlines are already responding to the outbound surge, expanding international routes to tap the growing appetite among Indians for overseas travel, even as inbound tourism shows signs of strain.