In recent years, the integration of technology and sports has given rise to a dynamic phenomenon known as sports tourism. This burgeoning industry sees enthusiasts’ travelers crossing borders to witness and participate in a vibrant tapestry of sporting events. The UNWTO estimates that sports tourism generates around 10% of global tourism expenditure and expects this figure to surge by 17.5% between 2023-2030.
The impact of technology on sports tourism goes beyond the thrill of competition. It has revolutionised how we experience and engage in sporting events, shaping a global industry that connects individuals across borders and transcends geographical boundaries. This dynamic interplay is not merely changing the viewing experience, it is reshaping the very fabric of the sports tourism landscape.
Consider the colossal scale of mega events like the Olympics. These global spectacles, where athleticism collides with cultural exchange, draw millions of visitors, athletes, and crew members. The Tokyo 2020 Olympics, for instance, hosted over 11,000 athletes from 206 nations, attracting a staggering 3.5 billion television viewers worldwide. Such events create an intense demand for seamless travel experiences, prompting the need for cutting-edge travel technology. Coordinating the movement of these colossal crowds requires sophisticated solutions optimizing transportation, accommodation, and overall event management. Travel technology becomes a crucial ally during these mega-sporting events, ensuring efficiency, safety, and an enhanced experience for participants and spectators alike. Effective Hospitality to Fuel Tourism Engine
The hospitality industry plays a vital role in enhancing the sports tourism ecosystem, providing accommodation, catering, and other services to sports tourists. From increased occupancy and revenue to brand awareness and loyal customers, even sports tourism offers significant benefits to these hotels. During the ICC World Cup 2023, host cities hotels witnessed over 90% occupancy and up to 500% higher room rates.
Moreover, the upcoming IPL 2024 is poised to follow suit, with over 25,000 room nights expected to attract many visitors, media, and celebrities alike. Similarly, the upcoming ICC World T20 presents a significant opportunity for the hospitality industry as cricket enthusiasts from around the world will flock to host cities, generating a surge in demand for accommodation, dining, and entertainment. Hotels, restaurants, and local businesses stand to benefit immensely, experiencing increased footfall and revenue during the tournament.
However, catering to the diverse and dynamic needs of sports tourists presents both challenges and opportunities. Hotels must navigate surges in demand, manage inventory and distribution effectively, enhance guest satisfaction and loyalty, and optimize revenue. In such a case, Amadeus Hotel Business Intelligence Solutions comes into play, offering a 360-degree view of rate, occupancy, and distribution trends, empowering informed decision-making regarding operations, marketing strategies, and revenue management. Moreover, our other tools like Demand360, Revenue Strategy 360, and Market Intelligence further augment their capabilities to provide customizable dashboards, real-time data monitoring, and insights into guest preferences and behavior, enabling hotels to personalize offerings and elevate the guest experience.
Promoting Sustainable Practices for Greener Games
Tech also plays a pivotal role in fostering sustainability within sports tourism. From eco-friendly stadium designs utilizing renewable energy sources to digitized ticketing systems reducing paper waste offers promising solutions. The Paris 2024 Olympics aims to be the first carbon-neutral Games, employing renewable energy, low-carbon transport, and digital solutions to minimize emissions and waste. In India, the M. Chinnaswamy Stadium in Bengaluru, a prominent host for IPL and international cricket matches, boasts a rainwater harvesting system that collects and stores water for irrigation and sanitation purposes. Even the Indian cricket board has launched a green initiative encouraging solar power, waste management, and water conservation measures across all stadiums in India.
Emirates has inked MoUs with the Greek National Tourism Organisation (GNTO) and Austrian National Tourist Office (ANTO) to bolster inbound tourism and collaboration. The airline has pledged to support Greece’s travel industry by enhancing traffic from top inbound markets, including the US, UAE, Australia, India, and China. Similarly, the partnership with ANTO aims to drive inbound visitors to Austria, leveraging Emirates’ extensive global network.
Tech-Driven Sporting to Lead the Future
The Indian sports tourism market is projected to grow at a CAGR of 17.1% from 2023 to 2030, reaching a staggering $52,967 million, reflecting the rising demand for innovative sports tourism products and services. Emerging technologies like AI, blockchain, and 5G are poised to further revolutionize the industry. AI-powered predictive analytics will personalize fan experiences, while blockchain will ensure secure ticketing systems. As India prepares to host major events like the 2026 Youth Olympics and the 2032 Summer Olympics, technology will play a key role in enhancing fan experiences, boosting athlete performance, and upgrading event infrastructure.
As India spearheads this revolution, it’s poised to become a global leader in sustainable and tech-driven sports tourism. Imagine AI-powered travel assistants suggesting immersive fan experiences tailored to your preferences, or secure blockchain-based ticketing systems eliminating fraud and streamlining entry.
This confluence of technology and sustainability promises a future where sports tourism is not just about witnessing athletic feats, but about fostering global connections, cultural exchange, and a shared passion for sport. It’s a future where fans feel immersed and engaged, athletes perform at their peak, and host cities thrive on the economic and social benefits of a thriving industry. By embracing technology and innovation, we can unlock the true potential of sports tourism, creating a connected, sustainable, and unforgettable experience for everyone involved.
The author is the SVP – Travel Distribution Engineering and Center Head, Amadeus Labs India.
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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In a strategic move to reinforce its global presence, Booking Holdings, the eminent online travel giant, has unveiled its second Center of Excellence (COE) in Bengaluru, India, accompanied by a significant investment of USD 250 million over the next five years. The new COE stands as a testament to Booking Holdings’ dedication to advancing the travel experience and creating innovative solutions for customers worldwide.
Mathias Weber, Senior Vice President, Trip Division, Booking.com provided deeper insights into the company’s vision and the role of the new COE in an exclusive interview with ETTravelWorld.
Expanding Global Capabilities in Bengaluru
Weber highlighted the strategic importance of the new COE, stating, “The COE in Bengaluru is already home to over 350 employees, and we plan to scale that to 1000 employees over the next five years. India is a core market for us as a source and destination country. The talented workforce here allows us to scale our organization in a way that wouldn’t be possible in Europe.”
This facility serves as a pivotal hub for the development of capabilities that will be launched globally, emphasising the company’s commitment to offering a seamless travel experience across its diverse portfolio of brands.
Connected Trip Vision: Simplifying Travel for Users
Weber delved into the Connected Trip vision, designed to provide travellers with a seamlessly interconnected experience across various travel verticals. “We want to make booking multiple products easy from search to payment to post-booking assistance using our vast customer data to provide personalised recommendations.”
The vision aims to simplify the process of booking multiple products, including accommodation, flights, car rentals, attractions, and more, catering to the evolving needs of global travellers. Weber stressed the importance of post-booking services, stating, “We aim to empower customers to adjust, amend, or cancel reservations seamlessly across multiple verticals with just one click.”
Localisation Strategies for Diverse Markets
In response to the diverse needs of global markets, Weber highlighted the significance of localisation. “We plan to roll out these innovations across all markets, ensuring a consistent and personalized experience for users worldwide. Localisation involves tailoring content and services to make them more relevant to specific markets.”
The panel conducted at ET Travel & Tourism Conclave & Awards, sketched a future where AI, if judiciously harnessed, will drive revolutionary shifts in the travel industry, augmenting experiences while ensuring ethical, secure, journeys for global travellers. The experts in the discussion highlighted how innovation in AI intersects with ethics and human intervention and why it is important to avoid over-dependence on tech tools.
For the Indian market, this translates into scaling the attractions business and adding more relevant products to cater to the unique preferences and travel patterns of Indian users.
Future Focus: Post-Booking Services and Conversational AI
Weber also shared future focus areas at Booking.com, stating, “A big focus area is in the post-book space, to ensure we offer customers the ability to adjust, amend, or cancel reservations across multiple verticals with one click of a button.”
He also outlined plans for enhancing recommendations through vast customer data and improving search functionality with a more free-text-based approach, providing customers with greater flexibility in exploring travel options.
The inauguration of the new COE in Bengaluru reflects Booking Group’s commitment to driving innovation in the travel industry. As the company continues to invest in technology and localisation, the travel industry can anticipate more user-centric features and enhancements, contributing to Booking’s global leadership in online travel services.
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Ninety five per cent Indian travellers prefer to use credit cards during their international travels to make their experience seamless, revealed the findings of Global Travel Intentions Study 2023, conducted by digital payment facilitator, VISA.
Various offerings like travel miles, cashback, rewards, high acceptance, foreign exchange rates, and high limits on spending remain the key factors that drive international card usage, it found.
Visa has been executing the Global Travel Intentions (GTI) study biennially for over a decade to understand travel and payment behaviours of its users, as well as to map the emerging trends in the travel landscape.
During the ET Travel & Tourism Conclave, Arvind Singh, Former Tourism Secretary & AAI Chairman highlighted India’s tourism growth, projecting a INR 16.5 trillion contribution to the economy in 2023, a mere 3.5 per cent dip from pre-pandemic 2019 figures. Singh also discussed global tourism’s outlook, foreseeing a 23.3 per cent surge in Travel and Tourism GDP, nearing USD 9.5 trillion for 2023.
“Consumers are increasingly wanting to substitute cumbersome procedures with secure, safe travel experiences,” said Sridhar Keppurengan, Business Head of Cross Border Payments, India & South Asia, Visa. “The security offered by a trusted brand’s card and the convenience of the widest global acceptance remain paramount, effectively removing complexities associated with exchanging and carrying the foreign currency,” said Keppurengan. Keppurengan said the Global Travel Intentions Study 2023 is a compass guiding the company through the ever-evolving landscape of travel and payments. “It’s clear that cards are persistently simplifying cross-border transactions, emerging as the favored choice for consumers seeking to amplify their overall travel experience, particularly for those journeying outbound from India,” he said.
The study identified sustainability, infrastructure, and experiential travel to be key drivers of the sector. As per its findings, 86% of individuals are highly interested in eco-friendly and sustainable travel and offerings and 60% look for such options actively.
The study found that infrastructure is important to 65% of individuals and 43% say destinations promoting sustainable initiatives would encourage them to travel sustainably. 75% prioritise the social environment (including good environmental practices and safety) while choosing a destination and 73% of individuals look forward to local cultural experiences, it said. In terms of hospitality experience, 86% of travellers were found to prefer hotels,30% prefer bed and breakfast set-ups, and 24% prefer hostels as accommodation choices, it revealed.
Among Indian consumers, international destinations like Australia, the UAE, the US, and Canada remain top preferences. The study found that 70% of travellers choose a destination based on leisure activities available, like entertainment and activities (35%), shopping options (27%), and local food and dining options (26%). Relaxation has been the main driver for travel (26%) and remains the top motivation (51%) for the next trip as well, it concluded.
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Digitisation has prevailed in the industry for quite some time in the form of online booking of flights and accommodations. However, the operations and administration across the industry still remained largely manual.
Things took a dramatic turn when the pandemic struck and the industry experienced a complete upheaval. Travel came to a complete standstill with no certainty of resumption. Several travellers were affected as they were stranded in foreign lands and were unable to return home, while numerous booked travel plans had to be changed and rescheduled due to extended lockdowns. The travel industry was in total chaos, inept in handling such a situation. The primary priority was to get the stranded passengers back home.
Big data analytics came in as a major force of orderliness in this labyrinth of confusion. Travel companies ubiquitously adopted digitisation to create a seamless network among travel companies, sieve the data of stranded passengers, match them with available transport and safely get them back home. This brought in the next level of challenge of quarantining foreign return passengers in various hotels, providing them with medical facilities and ensuring that the infection is contained and the staff is not affected.
The future of airport lounges promises to be a remarkable travel experience, where every aspect is catered to ensure passenger comfort and satisfaction. As technology advances and customer expectations evolve you should therefore prepared to be amazed by the potential of transformational technology the next time you enter an airport lounge.
This is where AI-enabled digital solutions came into action where each passenger was monitored remotely and their needs were catered to with minimal human interaction. According to the UNWTO survey, international travel plunged by 72% in 2020, the worst year for tourism. The international tourism recovered only 63% of pre-pandemic levels by 2022 and expects a better recovery in 2023.
However, this entire period enabled the travel industry to experience, experiment and embrace digitisation in toto. The pandemic period was leveraged to acclimatise the workforce with new skills and training, build processes, add efficiencies and keep the industry and customers informed about the ever-changing global rules.
Today, digitisation is the only way forward for the travel industry to reinvent itself. Some of the areas where digitisation has transformed the functioning of the industry are:
Being future-ready: One of the primary forces guiding the tourism industry is to be future-ready for any kind of catastrophe or calamity and devise a swift, digitally-enabled recovery plan. The AI-generated data enables travel companies to predict the possibility of things going haywire and create travel plans in accordance to avert such situations. Most travel companies and airlines today heavily depend on data science to compile weather forecasts, fuel forecasts, etc to achieve efficiency in their plans.
Marketing maneuvers: Digitisation plays a big role in keeping travel agencies ahead of their competition by creating the right marketing strategies, offering competitive prices and packages and providing personalised and targeted marketing plans to its customer base.
Yatra Online Co-Founder & CEO highlighted the low marginal cost of selling additional products once the platform is in place, with a focus on a deeper and wider product portfolio. This includes cross-selling of services such as insurance, attractions, and car rentals. Shringi underlined the importance of both technology-enabled and manually interfaced products in this evolution.
With customer data analytics, Big data offers an advanced method to churn out pricing and demand analysis, based on market dynamics and competitor pricing in a click of a button. This helps travel companies and airlines to build statistical and predictive modeling to ensure that customers get the best value at the best price.
Contactless Travel: Post-pandemic, most customers prefer contactless interaction. Thus, travel agencies and airline companies have leveraged automation across the industry right from automated check-ins at hotels and airports, self-service kiosks, biometric solutions for identity verifications and medical screenings to AI-enabled hospitality services.
AI-enabled robot workforce: Globally, AI-enabled robots are fast replacing human workforce to pave the way for a futuristic hospitality experience. Enabled with speech recognition, face recognition, voice recognition and collision-free capabilities, these robots provide front desk services, check-in/check-out services and also double up as robot cleaners, concierge and room service assistants.
This not only limits physical contact but also bolsters efficiency in the industry. Furthermore, these AI and ML-enabled humanoids also enhance the customer experience by assessing each customer’s unique requirements.
Backend digitised support: Travel companies have experienced a significant shift in the realm of document storage. The tourism and hospitality industry generates a huge amount of documents that need to be stored for a considerable duration. Digitisation has completely replaced the need for physical documentation by storing it on the cloud and also analysing the data to generate meaningful results that companies can utilize to understand their customers better and optimize their business.
Today, Big data is being leveraged by the tourism industry in every possible way. According to an analysis conducted by Global Data, the AI market which was valued at USD 81.3 billion in 2022, is expected to grow at the rate of 35% by 2030. These tools are being incorporated into devices, business applications and productivity tools for seamless business operations.
Digitisation, armed with Big data, AI and ML, has given the travel industry a new and futuristic dimension. This is the best time to fully unleash the power of digitisation and amalgamate it with the potential of the travel industry.
The author is Director, Brightsun Travel.
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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In a significant move to enhance corporate travel management, Yatra Online has officially joined forces with Aramco Asia India, a wholly-owned subsidiary of Aramco. This strategic partnership aims to streamline travel booking, hotels, and ancillary services for Aramco employees across Asia, emphasising Yatra‘s commitment to delivering exceptional service, cost efficiency, and cutting-edge technology.
As the largest corporate travel service provider and the third-largest online travel company in India, Yatra is poised to cater to the diverse needs of Aramco Asia through seamless booking processes and an extensive array of travel options. This partnership is rooted in understanding Aramco Asia’s unique preferences, reflecting Yatra’s dedication to providing unparalleled service quality and innovative technology solutions.
Sabina Chopra, COO-Corporate Travel and Head – Industry Relations, Yatra Online, expressed enthusiasm about the collaboration, stating, “We’re thrilled to welcome Aramco Asia as a valued client and partner. This partnership is a big step for us, and we’re excited to offer Aramco Asia our top-notch travel management services. With our ‘Yatra for Business’ platform’s advanced technology and our quick customer onboarding, we’ve solidified our leadership in corporate travel. We’re committed to providing Aramco Asia with excellent travel experiences, saving costs, and making their operations even more efficient.”Mohammed Al-Herbish, Aramco Asia India Managing Director, highlighted the value of the strategic partnership, stating, “This strategic partnership will provide Aramco Asia with the opportunity to avail the efficient and reliable travel services of Yatra Online. The collaboration reflects our commitment to delivering a seamless and enhanced travel experience for our employees across Asia.”
Despite a 14.7 per cent decrease in air ticket prices during the same period, gross bookings surged by 10.2 per cent YoY to INR 17,504 million. However, the B2B business was affected by subdued spending across IT/ITES clients. Nonetheless, Yatra continued to expand its corporate clientele, securing 13 new accounts during the quarter.
Yatra is set to offer Aramco Asia a high-touch travel management experience, ensuring a smooth and enjoyable journey for its employees. The user-friendly platform will empower Aramco Asia employees to conveniently book flights, hotels, trains, and other ancillary services. This partnership is expected to provide comprehensive travel solutions to subsidiary offices in India, Japan, Korea, Singapore, and Australia.Leveraging its industry-leading expertise, global network, and advanced technology, Yatra Online, aims to optimise Aramco Asia’s travel logistics and enhance the overall travel experience for its employees. The collaboration represents a synergy between Yatra’s proficiency in the travel industry and Aramco Asia’s commitment to seamless and efficient corporate travel.
The strategic alliance between Yatra Online and Aramco Asia signifies a significant step forward in elevating corporate travel experiences across the Asian region. As the partnership takes flight, it is poised to redefine the landscape of corporate travel management with a focus on innovation, efficiency, and personalised service.
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France continues to draw a strong growth in visitor arrivals from India, with the latter ranking at 15th in terms of visitor arrivals to the European nation. Set to catch up with pre-pandemic numbers of 704,230 visitors from India in 2019, 4,99,180 Indians travelled to France between January to June of 2023. This is as against 4,30,180 visitors in 2022 (with no travel in the first quarter because of Omicron).
According to Oxford Economic, Indian visitors to France spent USD 0.47 billion USD in the first half of 2023 as against USD 0.29 billion in 2022.
In October, a delegation of 33 French companies travelled to India to interact with the key representatives of the Indian tourism industry and promote their product over 2 days of scheduled meetings.
Most resorts expect to open in December or for the Christmas holidays, which appear to be well booked. According to the Association of Mayors of Mountain Resorts (ANMSM), the occupation rate for the first part of the season is already 52 percent, compared with 51 percent at the same time last year.
The event, organised by Atout France-France Tourism Development Agency in Kochi (Kerala), is the 5th edition of its flagship B2B event, that is aimed at building successful synergies between French tourism partners and the travel trade fraternity pan India. Last year, it was held in Udaipur, Rajasthan. “India is within the top 15 source markets for France and happy to announce that arrival figures for the first half of the year (mid June) are at an approximate of 4,99,000,” said Sheetal Munshaw, Director, Atout France India.
“We have had a very satisfying turnout for this edition of our showcase. Both our partners and agents displayed strong levels of motivation and a keen interest in the showcase of destination France to the discerning Indian traveller,” said Munshaw.
And now, with the Paralympic Games slated to take place in Paris next year, she opined that the interactions between the partners and agents would play a key role in establishing France’s strategic positioning as a preferred tourist destination for this year and the next.
This year also marks 20 years of Atout France’s presence in India.
The route through quaint medieval villages and rolling vineyards close to the border with Germany drew 7.7 million tourists last year, nearly half of them from abroad. It is the busiest in France after the storied wine trails that wind between the prestigious chateaux of Bordeaux and Champagne, but arguably the most scenic, particularly in autumn when the vines turn a blaze of gold and bronze.
An approximate of 1,500 scheduled meetings took place between buyers and exhibitors over the two days of interactive exchanges, reinforcing India’s potential as a source market for destination France.
The French delegation comprised of partners, including La Vallée Village (member of the Bicester collection), Auvergne-Rhône-Alpes Tourisme, Galeries Lafayette Paris Haussmann, Le Clair De La Plume, Galeries Lafayette Paris Haussmann, Disneyland, Occitannie tourism, representatives from Nice and Cannes, among others, who have either maintained a steady presence on the market or are new entrants interested to make a foray into the market.
In fact, Galeries Lafayette Paris Haussmann is all set to make its India foray in Mumbai and open its gates to the public in 2024.
“The next and the 16th edition of the Rendez-vous en France trade show will take place in Toulouse, in the Occitanie region. So we are really excited to have them here,” said Munshaw.
“Though skiing is very niche in India, but Indians love the mountains and we are really looking forward to having more tourists travel to the Auvergne-Rhône-Alpes region,” she added.
Added Barabara Breheret on behalf of Auvergne-Rhône-Alpes Tourisme, “Apart from mountains, we would like to tap the Indians’ interest in French gastronomy. Our new product is aimed to promote gastronomy in three regions – Burgundy, Auvergne-Rhône-Alpes and Les Airelles. We are looking to attract repeat travellers who seek experiences around wine and food.”
An EU-wide data-sharing scheme for Airbnb and similar rentals to help crack down on illegal short-term lets is a step closer after negotiators struck agreement Thursday. Airbnb welcomed the EU agreement, saying setting “clear rules” across the European Union to replace the current patchwork of national laws on the sector was “a watershed moment for Airbnb and our industry”.
While travellers from Mumbai and Delhi have been the most active in taking up experience travel, Breheret feels there has been a growing interest from the Bengaluru market.
Breheret has been actively involved in promoting film tourism to France from India and said the interest in the region has only grown with more projects coming their way.
“Provence is another region that we would like to promote as part of experience tourism offering,” added Christian Douchement, Responsable des marchés internationaux et Promotion, Auvergne-Rhône-Alpes Tourisme. “We would really like the Indians to experience the magic of lavender fields. The slow travellers can especially explore the castles and organic life of this region,” he added.
Indians’ love for shopping has had brands such as La Vallée Village exploring bigger partnerships in India. “For some nationalities La Vallée Village is a must do. It makes us happy to see that we are already on the list of Indian travellers,” said Patrick Allais, Senior Business Development Manager (Tourism and Partnerships), La Vallee Village.
“Indian travellers are particularly sensitive to attention and we have great offerings in terms of welcome and services that make them feel special. We suggest they book through a travel agent as the incentives are much higher and therefore greater benefits,” he added.
According to Allais, in terms of sales, Indians are among the top five, especially during the peak season, between April and July. “There is no more ‘season’ per se any more and we see Indian shoppers visiting us in big numbers till as late as October this year,” he shared.
Lise Talbot Barré, Consul General of France in Pondicherry and Chennai, Didier Talpain, Consul General of France in Kolkata and Jean-Marc Séré-Charlet, Consul General of France in Mumbai, held special sessions to provide useful insights on visa submissions and other relevant information to the Indian partners.
“In Kolkata, we try to process short term visas within a week and the process is very smooth. All you need to have is your documents in place. We do not have territorial specialisation for application, but the applicant must be prepared to travel to the centre for completing the formalities that require their physical presence,” said Didier Talpain, Consul General of France in Kolkata.
“In 2019, we processed more than 30,000 visa requests and around 24,500 visas were delivered. This year so far, till August, we have processed more than 21,000 visa requests. So going by the trends, we are expecting to cross 30,000 visa requests processed,” said Lise Talbot Barré, Consul General of France in Pondicherry and Chennai, sharing data points from her region.
Of these, she said, 70 per cent made for short term visas and 25-30 per cent are business visas (short term), she shared, adding that the number for business travellers would actually be higher as a lot of business travellers go for short term visas when visiting the country to participate in fairs and other events.
According to the Consul Generals, there is no longer a “season” for travel any more as Indians have evolved into all-season travel, especially post-Covid.
And, with a smooth visa process and improved connectivity, the ease of travel has only grown.
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India’s emerging fintech landscape has been a game-changer for the way people transact in the country. With the increased use of digital payments, the country has graciously welcomed the wave of UPI (Unified Payments Interface), becoming a global leader in instant payments. Recent facts state – that India alone accounted for 40 per cent of the total digital transactions globally in 2021, paving the way for a cashless economy.
Having said that, India, being culturally diversified, is recognised for its rich heritage that attracts millions of tourists every year and serves as a catalyst for the booming economy. However, the burgeoning tourism sector comes along with increasing hassles of making payments for foreign nationals arriving as tourists in the country. Owing to the universality of the ground breaking payment system – UPI, foreign nationals are striving toward a cashless and more inclusive payment system.
Challenges stagnating the influx of foreign tourists
The tourism industry in India is experiencing an upsurge, with Foreign Tourist Arrivals (FTAs) reaching 6.19 million in 2022, a substantial increase from the 1.52 million recorded during the corresponding period in 2021. However, several routine challenges inhibit foreign tourists from making digital payments in the country with ease. One of the biggest hassles that affect them is making payments in local currency and cash dependency. Until February 2023, UPI was not available to foreign tourists arriving in India. Their cash dependency and currency exchange hampered their travel experience, as they had to be more cautious in exchanging money to avoid unfavourable rates and fees. Additionally, the lack of adequate access to financial tools in India cultivates negative impressions in the minds of foreign tourists. For instance, credit and debit cards are widely accepted in larger cities and tourist destinations; however, some places still only accept cash. Certain types of cards may not be accepted, and international transaction fees levied on such transactions can pose a major inconvenience.
Moreover, tourists also face difficulties finding ATMs that accept foreign cards, especially in remote or rural areas. Several times, ATMs also run out of cash or have withdrawal limits, which can hamper their travel experience.
UPI augmenting financial inclusivity
UPI payments are propelling the nation towards digital payments. Today, the scan-and-pay system is available for all kinds of transactions – from a local tea vendor to a luxury retail outlet. Its simplified payment procedure has brought ease in payments for foreign tourists, enabling businesses to enhance their financial payment infrastructure while creating more avenues for tourists to make transactions.
Myanmar will introduce visa-on-arrival for Indian tourists as part of a one-year trial scheme. The start date for the scheme is yet to be announced. Currently, Indian tourists have to apply for a visa online or at a Myanmar embassy. The visa will allow visitors to access all sites except restricted areas for security reasons.
As UPI is penetrating deeper in geographies and inclusivity, it is rapidly gaining momentum to revolutionise residents and tourists conduct transactions. The seamless payment infrastructure enables users to make transactions from multiple linked bank accounts on a single mobile application of third-party app providers anywhere at any time. The ease of UPI has bridged several gaps in financial accessibility, universality, and inclusivity across the country.
RBI’s intervention
As a relief to foreign travellers in India, the Reserve Bank of India (RBI) has introduced a policy to bring ease in making local payments. The announcement comes as a game-changer for the tourism sector as foreign travellers and NRIs can experience hassle-free payments via UPI at over five crore merchant outlets in the country.
As India takes on the role of hosting the G20 summit, UPI has garnered significant attention within the country among international travellers. Under this provision, the RBI has permitted global travellers to enrol in the PPI system using their international phone numbers. They can complete the KYC process using their passport and visa information, which then allows them to become fully integrated into the UPI framework. Once onboarded, they have the capability to directly add funds to their prepaid UPI wallet and make purchases. The NPCI has extended this facility to all G20 nations, including the United States, Germany, Australia, the United Kingdom, Russia, France, Italy, Canada, and others.
The rise of UPI and its increased accessibility has simplified the user experience for foreign tourists, enabling them to transact effortlessly during their stay. Several fintechs are stepping forward in India’s quest for a digitally driven fintech landscape. From residents to non-residents, India is making UPI – the largest instant payment network with cross-border experiences.
The author is the Co-Founder & CTO of CheqUPI.
DISCLAIMER: The views expressed are solely of the author and ETTravelWorld.com does not necessarily subscribe to it. ETTravelWorld.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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