Southeast Asia is experiencing a significant surge in Indian tourists, driven by a confluence of factors including relaxed visa policies, increased flight connectivity, and a growing Indian middle class with rising disposable incomes. This influx is reshaping the region's tourism landscape, presenting both opportunities and challenges for Southeast Asian economies and tourism industries.
Several Southeast Asian countries have eased visa restrictions for Indian passport holders, making travel more accessible and convenient. Malaysia and Thailand have introduced visa-free entry for Indian visitors, while others like Indonesia offer visas on arrival. The Philippines recently joined this trend by allowing visa-free entry for Indian tourists for tourism purposes. These policy changes have led to a notable increase in interest from Indian travelers, with accommodation searches for Malaysia, Palau, the Philippines, and Sri Lanka showing significant year-on-year growth.
Increased air connectivity is another crucial factor driving the surge in Indian tourism to Southeast Asia. New agreements between India and countries like Indonesia and Vietnam have substantially increased the number of flights operating between them. For instance, Indonesia has finalized an agreement with India that allows airlines to operate 9,000 seats weekly between the two countries, up from 27 flights at present. Similarly, Vietnam and India have increased the number of flights to 42 per week from 28. These expanded flight capacities, coupled with affordable fares, make Southeast Asia an attractive destination for Indian travelers seeking short, international trips.
Destinations like Bali, Thailand, and Vietnam remain particularly popular among Indian tourists, with Bali leading in popularity. Thailand remains a favorite destination, attracting millions of Indian travelers every year with its diverse offerings, from bustling city life in Bangkok to stunning beaches in Phuket and Krabi. By mid-June 2025, over one million Indian tourists had visited Thailand. Vietnam has also seen a dramatic increase in Indian arrivals, driven by new nonstop routes introduced since 2022, resulting in a 363% increase in 2024 from 2019. Other destinations, such as Malaysia, Singapore, and the Philippines, are also experiencing increased interest from Indian tourists.
The influx of Indian tourists is providing a substantial economic boost to Southeast Asian economies. Increased tourism generates revenue for local businesses, the hospitality sector, and transportation services, contributing to employment growth and community development. The average Indian traveler is now booking longer holidays and spending more per person, making them particularly attractive to Southeast Asian economies. To capitalize on this trend, Southeast Asian countries are enhancing their marketing efforts, improving infrastructure, and tailoring offerings to Indian travelers.
However, the surge in Indian tourists also presents challenges. Companies need to balance meeting the growing demand for accommodations, services, and experiences while ensuring long-term sustainability. It is also crucial to maintain high safety and sustainability standards to secure the long-term success of the tourism industry.
The rise in Indian tourism reflects a broader shift in the global tourism landscape, with India emerging as a significant source market. By 2035, Indians are expected to spend around $120 billion annually on outbound tourism, making them the fourth-biggest spenders globally. As Southeast Asian countries adapt to cater to this growing market, the region is poised to strengthen its position as a preferred travel destination for Indian visitors.
