Prime Minister Narendra Modi’s recent appeal asking Indians to postpone non-essential foreign travel for at least a year has sparked intense debate within the tourism and hospitality industry.
The statement, made against the backdrop of rising crude oil prices, geopolitical tensions in West Asia, and pressure on India’s foreign exchange reserves, could significantly reshape Indian travel patterns in 2026.
India has emerged as one of the world’s fastest-growing outbound tourism markets over the last decade. In 2025 alone, more than 32 million Indians travelled overseas for holidays, business, education, and destination weddings. Rising disposable incomes, easier visa access, and the influence of social media helped fuel this boom. However, PM Modi’s statement introduces a strong economic and patriotic narrative into travel decisions.
The immediate impact on Indian outbound tourism is likely to be visible in the short and medium term. Industry bodies have already reported a decline of 10–15% in overseas travel inquiries for the current summer season.
International airfares have risen sharply because of higher fuel costs and currency fluctuations, making foreign holidays more expensive for middle-class families. Travel companies, airlines, visa consultants, and destination wedding planners could therefore face slower growth in 2026.
Outbound Pressure
Overseas travel inquiries may see short- and medium-term softness.
Higher Costs
Airfares and currency movement are making foreign trips more expensive.
B2B Impact
Travel companies, visa consultants and wedding planners could face slower growth.
The sectors expected to be most affected are luxury leisure travel, international cruises, overseas weddings, and premium shopping tourism.
Popular destinations such as Thailand, Dubai, Singapore, Vietnam, Switzerland, and Bali, which have witnessed a surge in Indian visitors in recent years, may see softer demand from the Indian market. Stock markets have already reflected this concern, with tourism-related shares witnessing a decline following the Prime Minister’s appeal.
At the same time, the statement may create a major boost for domestic tourism in 2026. Industry experts believe many families could shift their vacation budgets toward Indian destinations such as Kashmir, Himachal Pradesh, Uttarakhand, Goa, Kerala, Lakshadweep, the Northeast, and spiritual circuits across the country.
Domestic airlines, hotels, resorts, homestays, and state tourism boards are likely to benefit from this redirection of spending.
The government’s long-running “Dekho Apna Desh” and “Wed in India” campaigns may also gain renewed momentum. If supported with improved infrastructure, better connectivity, easier hotel taxation policies, and stronger destination marketing, India could witness record domestic travel numbers in 2026.
However, experts also caution that domestic tourism generally offers lower margins for travel agents compared to outbound holidays.
Ultimately, PM Modi’s statement is not a restriction but a moral and economic appeal.
While outbound tourism may temporarily slow, the larger outcome could be a stronger domestic tourism ecosystem. Much will depend on fuel prices, global stability, and consumer sentiment in the coming months. If economic uncertainty continues, 2026 may indeed become the year when Indian travellers rediscover India before travelling abroad again.
PM Modi’s “Avoid Foreign Travel” Statement: B2B Impact Assessment on Outbound vs Domestic Travel in 2026
This survey aims to assess the impact of PM Modi’s “Avoid Foreign Travel” statement on India’s outbound leisure travel industry and the potential shift toward domestic tourism in 2026.
The responses will help understand booking trends, operational challenges, revenue impact, and strategic adjustments being made by travel trade professionals and B2B stakeholders.
All responses will be kept confidential and used only for research and industry analysis purposes.
Section A: Observed Client Behavior
This section focuses on changes in client inquiries, international leisure travel bookings, booking cancellations, postponements, and the international markets most affected by shifting traveller sentiment.
Section B: Domestic Travel Shift
This section examines whether domestic tour bookings are increasing, which Indian destinations are gaining momentum, and how average client spending on domestic packages is changing in response to the shift.
Section C: Business & Operational Impact
This section looks at revenue projections, refund and rebooking challenges, domestic inventory shortages, rising hotel and transport costs, staff reallocation, marketing impact, and demand forecasting difficulties.
Section D: Strategic Outlook & Recommendations
This section captures how travel businesses are adapting through domestic promotions, flexible outbound policies, domestic inventory contracting, new experiential products, and revised marketing strategies.
The survey findings indicate that India’s travel trade is witnessing an early but noticeable shift in consumer sentiment following PM Modi’s “Avoid Foreign Travel” statement.
While the long-term impact remains uncertain, the industry largely expects a temporary slowdown in outbound leisure travel accompanied by a significant rise in domestic tourism demand during 2026.
Decline in Outbound Leisure Travel Demand
A majority of travel agents and tour operators reported a moderate decline in international leisure inquiries and bookings. Most respondents indicated that approximately 1–25% of existing outbound bookings for April–December 2026 have either been cancelled, postponed, or placed on hold.
The destinations witnessing the sharpest decline in Indian traveler demand are expected to be Europe, USA & Canada, and Southeast Asia. These regions are highly dependent on Indian leisure and group travel segments, making them particularly vulnerable to shifts in sentiment and policy-driven caution.
Strong Shift Toward Domestic Tourism
The survey strongly suggests that domestic tourism is emerging as the primary beneficiary of the advisory. Most B2B stakeholders reported a moderate to significant increase in domestic inquiries and bookings.
The top domestic destinations gaining momentum include Kashmir, Himachal Pradesh, Uttarakhand, Rajasthan, and pilgrimage circuits such as Ayodhya and Varanasi.
Luxury domestic experiences, spiritual tourism, wellness retreats, wildlife tourism, and experiential travel products are also seeing increased traction among Indian travelers who may have otherwise opted for international holidays.
Rising Domestic Travel Spend
Industry stakeholders observed that average spending on domestic holidays has either remained stable or increased by 10–25%, especially for premium destinations with limited inventory.
- Increased demand for high-quality domestic experiences
- Limited hotel inventory in peak destinations
- Rising transportation and operational costs
- Consumer preference for shorter but more premium holidays within India
Revenue Impact on Travel Businesses
Most respondents believe the shift is creating a mixed revenue environment: outbound revenues are declining and domestic revenues are rising.
Overall business impact is expected to remain largely neutral or mildly positive for diversified travel companies. However, companies heavily dependent on outbound group tours may face short-term financial pressure.
Major Operational Challenges
- Refund and rebooking complexities with international suppliers
- Rising hotel and transport costs in domestic markets
- Inventory shortages in high-demand Indian destinations
- Difficulty forecasting travel demand patterns for the remainder of 2026
- Need to retrain sales teams toward domestic and experiential travel products
Many agencies also expressed concern about marketing investments already committed to international campaigns.
Industry Adaptation Strategies
- Aggressively promoting domestic holiday packages
- Increasing domestic hotel and transport contracting
- Launching luxury, wellness, spiritual, and experiential India itineraries
- Offering flexible cancellation policies for outbound bookings
- Redirecting digital marketing budgets toward domestic tourism campaigns
This indicates a broader industry pivot toward strengthening India-focused travel portfolios.
Outlook for Indian Outbound Tourism
The majority of respondents believe the impact will be short- to medium-term, lasting through 2026 or potentially 1–2 years. Most industry stakeholders do not expect a permanent decline in outbound travel demand, as Indian travelers historically show strong aspiration for international holidays.
However, the advisory is likely to accelerate growth in domestic premium tourism, infrastructure investment in Indian destinations, diversification strategies among travel companies, and greater focus on “Experience India” campaigns.
- Growth in domestic premium tourism
- Infrastructure investment in Indian destinations
- Diversification strategies among travel companies
- Greater focus on “Experience India” campaigns
The Indian travel industry views PM Modi’s statement as a temporary but influential market disruptor rather than a permanent structural shift.
While outbound tourism may witness short-term softness, domestic tourism appears poised for strong growth in 2026.
For travel companies, the situation presents both challenges and opportunities. Agencies that quickly adapt by strengthening domestic inventory, creating premium India experiences, and maintaining flexible outbound policies are expected to perform better during this transition period.