Domestic Surge and Far East Demand Cushion Travel Sector Amid West Asia Crisis and Rising ATF Costs: TAAI
Mumbai (Maharashtra) [India], August 22: India’s travel industry leaders have underscored a robust domestic and experiential travel boom heading into the festive and winter season, driven by rising disposable incomes, evolving visa dynamics, and surging demand for MICE and destination weddings. While global headwinds and higher aviation costs present challenges for outbound traffic, on the sidelines of TTF Mumbai 2026 stakeholders emphasized that India’s domestic tourism market serves as an unprecedented growth engine.
TTF Mumbai 2026, organised by Fairfest Media, is being held at the Jio World Convention Centre (JWCC), Mumbai, running from August 20 to 22, 2026. As India’s oldest and largest travel trade show series, this premier B2B marketplace features over 500 exhibitors, 20 Indian States and Union Territories, and participants from 5 countries, bringing together more than 10,000 trade visitors. The three-day event provides direct trade access to Western India’s high-value travel market just ahead of the crucial Diwali, wedding, and winter buying windows.
The exhibition was inaugurated in the presence of senior dignitaries from State Tourism Boards and leading national and state-level travel trade associations.
Speaking at the event, Mr. Rajesh Poddar, Chairman-Western Region- Travel Agents Association of India (TAAI), said “The travel trade is witnessing strong momentum in domestic and Far East markets, with changing global dynamics and visa challenges for EU & US, influencing traveller preferences. India recorded over 4.3 billion domestic tourist visits in 2025, while 32.83 million Indian nationals travelled abroad, registering 6.3% growth year-on-year, reflecting the sector’s continued expansion. Travellers are increasingly seeking offbeat and lesser-known destinations, while affordable and hassle-free visa options are opening new opportunities, including in the luxury segment. Government support through easier visas, tourist-friendly infrastructure and dedicated tourist police can further accelerate growth.
However, the West Asia crisis has created fresh headwinds for international travel, with flight disruptions, longer routes and higher airfares affecting outbound demand. This has been compounded by the sharp rise in Aviation Turbine Fuel (ATF), with international ATF prices increasing nearly 2.5 times in last three months. As fuel accounts for around 40% of airline operating costs, the increase has put significant pressure on airline finances and ultimately travel costs. While strong domestic demand provides an important cushion, maintaining affordable air connectivity and supporting alternative international routes will be critical for the travel trade in the months ahead.” he further added.
Dr. Nitin Mittal, National Coordinator, Network of Indian MICE Association (NIMA), said “India’s MICE and destination-wedding industry is witnessing strong momentum, with corporate MICE growing by 10–15% year-on-year and destination weddings expanding at an even faster 15–20%, taking the combined segment to around 12–15% growth over the previous year. While established hubs such as Delhi NCR, Mumbai, Bengaluru, Hyderabad and Chennai continue to lead, Tier-2 and Tier-3 destinations including Goa, Udaipur, Jaipur, Kochi, Varanasi and Indore are emerging as attractive alternatives, driven by their infrastructure, cultural appeal and cost advantages. Over the next 3–5 years, the sector is expected to grow at 12–14% annually. Strengthening connectivity, streamlining visas, developing city-level convention bureaus and introducing targeted incentives for global events will be critical to positioning India as a leading global destination for MICE and weddings.”
Mr. Burjis Mehta, President-Bombay-Skal International, said “India’s tourism industry is at an exciting inflection point, with its rich heritage and the timeless philosophy of Atithi Devo Bhava providing a strong foundation for sustained growth. From the Himalayas and Rajasthan’s royal heritage to its wildlife, spiritual centres and diverse cultural experiences, India offers immense potential for travellers. India now ranks eighth globally in terms of tourism economy size, with a contribution of US$231.6 billion, up from 10th place previously, and is projected to reach fourth position over the next decade. Domestic tourism is emerging as a particularly strong growth driver, with travel visits estimated to surpass 5 billion, creating significant opportunities across hospitality, homestays, regional transportation and local experiences. At the same time, rising demand for spiritual and religious tourism, medical and wellness travel, and sports tourism is opening up new avenues for destination development.”
Mr. Jay Kantawala, Chairman-Western Chapter- Travel Agents Federation of India (TAFI), said “India’s travel trade continues to witness strong, broad-based growth, driven by rising disposable incomes, expanding air connectivity and a growing appetite for experience-led travel. Outbound, MICE, luxury and experiential travel are among the fastest-growing segments, with many businesses witnessing double-digit growth as travellers increasingly seek premium, personalised and immersive experiences. This shift is also transforming the role of travel agents from itinerary providers to experience designers. Looking ahead, significant opportunities lie in luxury and experiential travel, MICE, tier-2 and tier-3 markets, and attracting higher-value international travellers to India.
Ms. Seema Yadav, Joint Director, Department of Tourism, Government of Rajasthan, said “Rajasthan’s tourism sector continues to demonstrate strong growth, with total tourist visits rising from 2321.57 lakh in 2024 to 2544.49 lakh in 2025, registering 9.6% growth. Domestic tourism remained the key driver, with visits growing 9.74% to 2525.03 lakh during the year. Going forward, Rajasthan is focusing on expanding its tourism footprint beyond established hubs by promoting emerging experiences across rural, eco, adventure, water sports (Kota Barrage) and heritage tourism, with destinations such as Ramgarh Crater, Sambhar Lake, Jhamarkotra, Zawar and several rural tourism circuits being developed. The state expects domestic tourist arrivals to grow by around 10% annually over the next five years, while foreign tourist arrivals are projected to grow by 6–8% annually, reflecting Rajasthan’s continued potential as a leading tourism destination.”
Speaking on the occasion, Mr. Sanjiv Agarwal, Chairman & CEO, Fairfest Media Limited, said, “The world’s travel headlines may look uncertain, but India’s answer has been to travel at home and to travel more than ever. Domestic tourism is the strongest story in world travel today, and Mumbai is where that market concentrates: the country’s financial capital, its biggest aviation gateway, and its highest-value source of travellers. The three days ahead are the trade’s last big marketplace before the festive and winter season, and the energy on the floor this morning says the season will be a strong one. My thanks to the exhibitors, Partner and Feature States, buyers and association partners who have made this edition our biggest in Mumbai yet.”
A Domestic Market Powering the Sector’s Growth
India recorded close to 3 billion domestic tourist visits in 2024, and domestic visitor spending has led the sector’s post-pandemic growth, according to the World Travel & Tourism Council. Industry projections place India’s domestic tourism market at approximately ₹35 trillion by 2029, with surveys indicating that a majority of Indian travellers plan to increase their travel spending. With international conditions favouring travel within the country, the festive and winter season ahead is expected to be among the strongest on record — and Western India, led by Mumbai, remains its most important source market.
The destination showcase at TTF Mumbai is anchored by Rajasthan, Kerala, Jammu & Kashmir, Madhya Pradesh and Karnataka as Partner States, with West Bengal, Delhi and Sikkim as Feature States. Featured exhibitors include Club Mahindra, Evoke Experiences, Nautika, Trulyy India, Time Square Resort & Spa, Paul John Resorts & Hotels, Madhuban Eco Retreat, Sahara Star, Crestora Hotels, The Lake Manor Kerala, Sajjanbagh Resort & Spa, Anjali Estates and Developers and DLS Hotels, alongside a wide representation of hospitality, destination and travel-technology businesses.
TTF Mumbai is supported by prominent industry associations including TAFI, IATO, NIMA, TIA, ETAA, SKÅL, ADTOI, TOAI, MTOA, TAAS, TAAP, ATOAI, TAHAT and UTEN, among others.
