India’s tourism ministry operates on a chronically underfunded budget and even the limited resources it receives are routinely left unspent. In the 2025–26 fiscal year, the ministry was allocated only INR 25.4 billion ($298 million).

A recent Parliamentary standing committee report drew attention to the recurring failure to fully utilize funds under key initiatives, including the flagship Swadesh Darshan and PRASHAD (Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive) schemes. 

In fact, in 2023–24, only 33.4% of the tourism budget was utilized, the following year even that dropped to a mere 16%. The report said the ministry attributed this underperformance to administrative bottlenecks, procedural delays, and coordination challenges with implementing agencies. However, the committee found these explanations “inadequate and reflective of entrenched operational weaknesses.”

Mugdha Sinha, the then director general of tourism for India, said at the Skift India Forum that the government has been focusing on infrastructure development, alternate destinations, improved accessibility, and building amenities for accommodation with an investment of INR 120 billion ($1.4 billion). The impact of this investment is expected to be fully realized by 2028-29, potentially marking a peak period for inbound tourism growth, according to Sinha. 

Struggling Inbound Tourism: The committee also expressed concerns about the drastic reduction in the allocation for global promotion by 97% to INR 30 million ($350,000). “This drastic reduction threatens India’s competitiveness in the global tourism market where competing destinations are substantially increasing their marketing investments.”

In 2019, India received approximately 10.5 million foreign visitors. But post-Covid, they’ve only reached around 9.5 million. 

Speaking at the Skift India Forum in March this year, Dipak Deva, managing director and CEO of Travel Corporation India, stressed the urgent need for a well-funded social media campaign that focuses on sustainability and immersive experiences. He added that India must allocate at least INR 10 billion ($120 million) towards a robust tourism promotion strategy. 

Minor Hotels to Debut Avani Hotels & Resorts Brand in India

Minor Hotels has announced the debut of its Avani Hotels & Resorts brand in India with Avani+ Sunray Beach Visakhapatnam Resort in Andhra Pradesh. The company is developing a project consisting of the 117-key resort and 58 branded residential villas. 

Slated to be completed by 2028, the project is part of Minor Hotels’ rapid expansion strategy in India. Last year, Minor Hotels set a target to open 50 properties in India over the next decade. In February, the company opened Anantara Jewel Bagh Jaipur, marking the launch of its experiential luxury brand Anantara Hotels & Resorts in India. 

“India is a key component of Minor Hotels’ long-term global expansion strategy, and we’ve been surprised at the amount of interest we’ve received recently for conversion opportunities,” Amir Golbarg, senior vice president for Middle East, Africa, and India at Minor Hotels, told Skift in an interview last year. 

Cruise Operations Start at Mumbai International Cruise Terminal

Cruise operations commenced at the Mumbai International Cruise Terminal (MICT) on Monday. The terminal is the largest cruise terminal in India and has been built to handle 1 million passengers every year with an approximate 10,000 passengers per day. The cruise terminal in Mumbai has been developed with 72 check-in and immigration counters and has the capacity to handle five ships simultaneously. 

The terminal has been developed under the Cruise Bharat Mission. According to the Indian ministry of ports, shipping and waterways, the Mumbai International Cruise Terminal has been developed according to global standards with the aim to lead the emerging cruise tourism sector in India. 

Under the Cruise Bharat Mission, the government is aiming to position India as a cruise tourism hub, as the country has been witnessing an increase in demand for this segment among domestic travelers. 

68% Flights Grounded at Delhi Airport

Delhi airport recorded a delay of close to 70% of all scheduled flights on Sunday, according to data from Flightradar24. Some planes were also diverted mid-air. 

This was due to chaos caused by the closure of a runway for critical upgrades that were meant to prepare the airport for foggy winter conditions. On Sunday, the departures were delayed by an average of one hour, while arrivals were delayed by 75 minutes. 

This came even as the airport had planned for the closure months in advance. In a statement, Delhi airport said that all stakeholders were informed about the closure in advance and airlines were required to reschedule or cancel flights. “However, there were minimal to no changes made,” it said, adding that this led to significant operational challenges. 

Accor to Open Novotel, Ibis Styles in Indore

French hospitality company Accor has signed an agreement to develop Novotel Indore Super Corridor and ibis Styles Indore Super Corridor. The hotels will have a total of 310 rooms, and are scheduled to open in 2029. 

In a statement, Accor said that the development aims to cater to the growing corporate and MICE demand in Indore, as the two properties will be located near the commercial and IT hub.

Earlier this month, Accor said it is planning to increase its presence in India to 300 properties by 2030. It has expanded its partnership with InterGlobe Enterprises and forged an agreement with hospitality chain Treebo to undertake this growth. 

Indians Keen to Travel for Cricket Matches

Nearly 50% of Indian travelers are keen to travel within India and abroad to watch cricket matches live, according to a report by travel platform Skyscanner. About half of the fans are also choosing to extend their cricket trips by a few days to turn it into a getaway. 

“Indians have always had a deep love for travel, and now they are bringing that same energy to their passion for cricket. With nearly half (48%) planning their trips to watch a live match up to two months in advance, it is clear that cricket-fuelled travel is on the rise,” said Mohit Joshi, Skyscanner travel and destinations expert.

Skift had earlier reported that the Indian Premier League (IPL) cricket tournament is driving sports fans across the country to different parts of India to watch the live matches. Online travel agency EaseMyTrip has reported a 30-35% increase in domestic bookings due to IPL.