'Chai and samosas': US hotels welcome Indian tourist boom to revive revenue

US hotels and travel companies are aiming to tap a surge in Indian tourists to boost revenue as domestic leisure spending falters and demand from East Asian countries remains below pre-pandemic levels.

Nearly 1.9 million Indian tourists visited the US in the first ten months of 2024, a nearly 48% rise from 2019, according to data from the US National Trade and Tourism Office (NTTO). The surge was driven by a 50% jump in visas issued for business visits and 43.5% increase for leisure, data showed.

The expanding Indian middle-class population, higher travel budgets and increased flight capacity are also behind the South Asian country's international travel boom. In contrast, visitor volumes from China, Japan and South Korea dropped 44.5%, 50.8% and 23.9% during the same period, compared with 2019 levels, NTTO data showed.

Wealthy consumers from East Asian countries such as China have been traveling more within the region, especially to destinations in Southeast Asia, avoiding long-haul trips to the United States.

European tourists have been returning to the US but visitation from countries such as the UK, Germany and France has remained below 2019 levels.

The US tourism industry has had a slow year, with companies such as Hilton and Airbnb bracing for weaker revenue as the post-pandemic travel surge normalizes and persistent inflation forces Americans to cut back on leisure spending.

"Indian travelers are stepping up to fill part of the gap left by lower visitation from China, Japan, and South Korea," said Laura Lee Blake, CEO of the Asian American Hotel Owners Association, members of which own 60% of the hotels in the United States.