Introduction
Indian tourism contributed 9.1% in 2023, making it vital. India attracted 62.7 million domestic and 6.3 million international tourists in 2022. Millions of people visit India yearly for its diverse landscapes, rich culture, and historical sites. The sector’s epidemic recovery has investors optimistic.
The 2023-2024 economic situation makes tourism stock investments crucial. The tourism sector is projected to grow to ₹32.05 lakh crore by 2028, driven by government initiatives like the “dekho apna desh” campaign and large infrastructure investments. This allows smart investors to benefit from this dynamic market’s momentum and potential gains.
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Indian tourism overview
Tourism is expected to account for 10% of India’s GDP in 2024. This exceeds 11.10 trillion USD, up 12.1% from last year.
The sector is anticipated to generate 50 million direct and indirect employment opportunities in the next 7 years, underscoring its significance in the economic recovery and growth. According to the Ministry’s statistics the general economic contribution of tourism is essential for the preservation of livelihoods and the improvement of infrastructure throughout the nation.
Investments in the tourism sector are essential for attracting more domestic and internal tourists and driving sustainable development as the industry continues to rebound post-pandemic.
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Top 10 tourism stocks
The financial soundness and industry positioning of the top 10 tourism stocks have been meticulously chosen based on their market capitalisation.
The central public sector firm manages Indian Railways’ online reservation services, tourism, and catering. The New Delhi-based company improves millions of travellers’ travel experiences by offering a broad spectrum of services.
Technology-driven travel and distribution infrastructure TBO TEK LTD provides comprehensive solutions to travel agencies and ecosystem stakeholders. The Gurugram-based company optimises travel reservations to improve customer productivity.
Governments and diplomatic missions worldwide use BLS International Services for visas, passports, and travel & tourism. BLS International, situated in New Delhi, streamlines travel for individuals and organisations.
- Thomas Cook
Travel insurance, foreign exchange, and holiday packages from THOMAS COOK INDIA are trustworthy. They have supplied high-quality travel services to Indian and international clients for years.
Hotels, airfare, and vacation packages are available online from EASY TRIP PLANNERS. Users can easily book trips with New-Delhi based easy trip planners
Travel search engine IXIGO lets customers compare and book flights, trains, and hotels. Gurugram-based IXIGO helps people find the best travel options.
- ECOS (India) Mobility & Hospitality Ltd
ECOS (INDIA) MOBILITY & HOSPITALITY LTD. provides hospitality and mobility solutions for domestic and international visitors. The New Delhi-based company’s comprehensive product portfolio aims to create extraordinary travel experiences.
- Dreamfolks services
Travel services including lounge access and meet and help are offered by DREAMFOLKS SERVICES, an airport service provider. Gurugram-based Dreamfolks Services improves travel comfort.
- Praveg Comm
PRAVEG COMM’s travel and tourism services focus on personalised experiences and hospitality. Praveg Communication, based in Ahmedabad, offers memorable travel experiences.
- Yatra Online
India’s leading online travel operator, Yatra Online, offers flight reservations, hotel stays, and holiday packages. Gurugram-based Yatra Online strives to make travel planning simple and effective.
The below table is curated as of 24th September 2024.
| Company Name | CMP (Rs) | Market Cap (Rs m) | P/E (x) | RoE (%) | D/E (x) | Sales CAGR (3 yrs, %) | Profit CAGR (3 yrs, %) |
| 1. IRCTC | 912 | 728,640 | 61.3 | 40.4 | 0.02 | 76.5 | 93.6 |
| 2. TBO TEK LTD. | 1,752 | 189,931 | 93.3 | 46 | 0.39 | 114 | 178 |
| 3. BLS INTERNATIONAL SERVICES | 386 | 161,670 | 44.4 | 31.1 | 0.03 | 51.9 | 84.1 |
| 4. THOMAS COOK INDIA | 208 | 98,263 | 37.9 | 13.8 | 0.20 | 109 | 44.8 |
| 5. EASY TRIP PLANNERS | 40.9 | 73,487 | 36.3 | 31.9% | 0.0 | 51.5 | 37.9 |
| 6. IXIGO | 141 | 53,910 | 143 | 9.32 | 0.10 | 69.1 | 74.7 |
| 7. ECOS (INDIA) MOBILITY & HOSPITALITY | 500 | 30,765 | 53.1 | 38.7 | 0.17 | 75.2 | 317 |
| 8. DREAMFOLKS SERVICES | 487 | 26,057 | 35.5 | 34.9 | 0.03 | 121 | 300 |
| 9. PRAVEG COMM | 808 | 21,100 | 167 | 6.54 | 0.22 | 26.4 | 5.49 |
| 10. YATRA ONLINE | 136 | 20,972 | NM | -1.00 | 0.11 | 49.9 | 24.7 |
Top 5 states generating highest revenue in tourism
The top 5 states with the highest domestic tourist visits are:
| State | Domestic Tourist Visits (In millions) | Overview of Tourist Attractions | Major Attractions | Economic Impact | Government Policies | Recent Developments |
| Uttar Pradesh (UP) | 317.91 | Historical sites like the Taj Mahal and religious tourism make it famous. | Taj Mahal, Varanasi, Agra Fort | Projecting ₹32,000 crores in 2024 as investments. | “UP Tourism Policy 2020” emphasises infrastructure. | Building tourism circuits around important destinations. |
| Tamil Nadu | 218.58 | A cultural hub with historic temples and picturesque hill stations. | Kodaikanal, Ooty and Meenakshi Temple. | Contributes ₹1.25 lakhs crore to the state’s GDP | Tamil Nadu tourism policy promotes sustainability. | Increased temple refurbishment and eco-tourism funding. |
| Andhra Pradesh (AP) | 192.72 | Cultural and spirituality, draw pilgrims and nature lovers for the scenic views. | Tirupati, Visakhapatnam, Araku Valley | Domestic tourist touched the number of 192.72 million in 2022-2023 | “Andhra Pradesh Tourism Policy 2020” focuses highly on holistic tourism. | Infrastructure improvements, especially tourist access. |
| Karnataka | 182.41 | Popular among tourists because of its mix of modern cities, ancient attractions, and biodiversity. | Mysore Palace, Hampi, and Coorg | Tourism accounts for a total of 14.8% of Karnataka’s Gross state domestic product (GSDP). | The “Karnataka Tourism Policy 2020” encourages better sustainability. | Promote adventure tourism. |
| Gujarat | 135.81 | Known for its history, culture, and natural beauty. | Gir National Park, Rann of Kutch, Dwarka, Somnath temple, Sabarmati Ashram. | Tourism benefits Gujarat’s economy by creating jobs and strengthening local businesses. | Ecotourism, infrastructure and private investment incentives are the priority of the 2015 tourism policy of Gujarat. | Improved infrastructure, internet connection, and adventure tourist are promoted and advertised to attract more visitors |
The 5 states with the highest foreign tourist visits:
- Gujarat: 1.78 million visits
- Maharashtra: 1.51 million visits.
- West Bengal: 1.04 million visits.
- Delhi: 0.82 million visits.
- Uttar Pradesh: 0.65 million visits.
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Conclusion
The Indian tourist business is predicted to recover and flourish, making it a promising investment. As noted, the top tourism shares have strong market capitalisation and a wide range of items to suit different consumer tastes. Investors looking to profit from this industry should assess these companies’ financial health alongside market movements and economic factors.
By assessing state performance and understanding revenue generating tourism attractions and government activities, investors can choose stocks. Strategic and observant investors will benefit from this robust industry’s growth as the tourism sector evolves.
