A mix of geopolitical tensions, disrupted air connectivity and weak traveller sentiment is weighing heavily on Uttar Pradesh’s inbound tourism, triggering a 25–30 per cent decline. Even as domestic demand keeps hotels afloat, falling bookings and limited global promotion are emerging as key concerns for the state’s tourism recovery.
By: Janice Alyosius
Inbound tourism to Uttar Pradesh is facing a sharp downturn, with industry stakeholders flagging connectivity disruptions and weak traveller sentiment as key concerns. The slowdown, estimated at 25–30 per cent year-on-year, comes even as the state sees rising domestic demand and a steady pipeline of new hotel developments, signalling a mixed outlook for the sector.
Inbound tourism takes a hit
Prateek Hira, Chairman, IATO-Uttar Pradesh Chapter, said the decline in inbound movement has been immediate and sentiment-driven, impacting both current business and future bookings. “There was a huge movement from the Gulf region, especially Indian diaspora travelling to places like Banaras. But that has completely gone for a toss. There is no leisure movement at all right now,” he said.
He added that dependence on Middle Eastern carriers has worsened the disruption. “Travellers from countries like Spain rely on airlines such as Emirates or Etihad to reach India. With these carriers impacted, inbound movement has undoubtedly suffered,” Hira explained.
“Even where flights are operating, people are hesitant to travel. Sentiments are down, and that is directly impacting bookings and future demand,” he noted.
Highlighting the scale of impact, he said, “There is roughly a 25 to 30 per cent decline in arrivals and financials compared to last year. Turnovers and profits have both gone down, and the market has not picked up.”
“Hotels are also asking for advance deposits even for bookings a year in advance. In such uncertain times, it becomes difficult for operators to commit,” he added, pointing to growing operational pressure on tour operators. “In several cases, hotels have not refunded cancellations, forcing operators to refund clients from their own pocket to maintain relationships, while funds remain blocked as credit notes,” he said.
Domestic tourism drives resilience
Amid the inbound slowdown, domestic travel continues to support the hospitality sector across Uttar Pradesh. “You won’t find rooms in premium hotels in Varanasi during peak dates. Domestic movement is extremely strong, and hotels are seeing consistent demand,” Hira said.
He highlighted weddings, social gatherings, and pilgrimage travel as key demand drivers. “Weddings, family gatherings, and even smaller social events are now increasingly being hosted in hotels. This trend is here to stay and is contributing significantly to hotel business,” he said.
“Earlier, events like birthdays or prayer meetings would happen at home or in community spaces. Now, even these are being organised in hotels, which is adding a new revenue stream for the hospitality sector,” he added.
Hotel expansion reshapes the market
Hira also pointed to a growing pipeline of hotel developments across Uttar Pradesh, particularly in key tourism hubs, reflecting strong investor confidence despite inbound challenges. “There is a lot of hotel development happening in Uttar Pradesh. In Varanasi itself, we are seeing new luxury and branded properties coming up, including two Taj properties, which shows the kind of potential the destination holds,” he said.
Buddhist tourism remains untapped opportunity
Looking ahead, Hira identified Buddhist tourism as a key segment with strong inbound potential. “There is strong interest from Southeast Asian markets like Thailand, Vietnam, Japan, and even China. This segment has long-term potential for Uttar Pradesh,” he said.
However, he flagged gaps in infrastructure and promotion. “We are not able to capitalise on this opportunity because infrastructure is not ready. Kushinagar airport is still not fully operational, and there is no strong push from the government to promote these circuits globally,” he noted.
He further stressed that limited global marketing and lack of sustained promotional efforts are restricting inbound growth. “There is not enough international promotion of Uttar Pradesh’s key circuits, especially Buddhist tourism. Unless there is a focused and consistent marketing push in these source markets, we will not be able to fully tap this demand,” Hira said.
Janice Alyosius is a travel and MICE journalist focusing on business travel, destination marketing, aviation and industry policy. She leads editorial content at MICEtalk and also writes for TravTalk, covering global trends, trade developments and key industry conversations. With regular reporting from tourism forums, conventions and on-ground industry events, her work blends news-led analysis with strong industry voices, offering clear context and relevance for travel trade professionals and decision-makers.
