Major Insights into Rajasthan’s Growing Tourism Industry

The state of Rajasthan in western India is not just known for its rich history, heritage, and cultural offerings but is also one of the fastest-growing tourism markets in the country. The state is recognized as one of the most well-recognized tourist destinations in India and abroad, making it fertile ground for a wide range of businesses such as hotels, resorts, wellness centers, tour operators, retail, F&B, amusement parks, etc. to grow and flourish. Yearly, Rajasthan receives close to 50 million tourists, which also includes around 1.5 million foreign tourists. It is believed that 30% of the international tourists who come to India prefer to visit Rajasthan once at least. 

Rajasthan is rich in culture, royal heritage, and baroque museums. It is equally blessed with popular Sufi shrines, exotic temples, and ample wildlife, making it a true paradise for local as well as global tourists. Rajasthan is acclaimed for its handicraft and handlooms and hosts a wide range of national-level events including the Jaipur Literature Festivals, which gives fresh shades to its tourism industry. 

Besides leisure which comprises around 45% of the total tourism market in Rajasthan, the state is also an emerging MICE and wedding destination, especially in the Jaipur region, which is closely linked to the national capital of India. Most of the major hotels and resorts in Rajasthan are equipped with meeting and exhibition facilities to cater. 

Rajasthan’s royal cultural heritage makes it a suitable destination to host weddings and post-wedding parties and events. Numerous celebs from Hollywood, Bollywood, and the sports arena have conducted their royal wedding in Rajasthan. 

Major cities of tourism in Rajasthan include Jaipur, Jaisalmer Udaipur, Alwar (Sariska), Jodhpur, etc. In addition, there are micro-markets in the state’s evolving tourism industry which include Ajmer, Bikaner, Mount Abu, etc. 

The present size of Rajasthan’s overall tourism market is USD 26.2 billion, comprising 15% of the overall state’s economy. The tourism industry in the state has been growing at a CAGR of 16.7%, as per business research by The India Watch. The positive impact of tourism and its ramifications are felt far and wide in the economy. Besides earning direct revenue, it also helps in employment generation, vitalize the infrastructure, and support ancillary industries such as handlooms and handicraft, etc. 

The volume of tourists is also reviving with numbers reaching pre-pandemic levels. Before the pandemic, the annual tourist inflow in the state amounted to around ~ 50 million. As the covid wave blew in, like other major tourism markets in the world, Rajasthan also took a beating. However, the silver lining is that numbers are once again recovering. In FY 23, the total number of domestic tourists in Rajasthan reached close to 42 million tourists, jumping by 91% in the past 12 months. This is a 177% jump compared to FY 21. 

The pick-up of international tourists is also visible. In FY 23, around 1.5 million foreign tourists visited Rajasthan, after a slowdown in the past two years. 

A potential hub for wellness and alternate healing

The nature of tourism in Rajasthan mainly revolves around culture, heritage, cuisine, art, handicraft, business meetings, royal weddings, etc. However, Rajasthan is well placed to capture a market larger share in India’s growing Ayurveda, wellness, and alternate healing segments. India’s alternate healing and wellness tourism market is set to cross USD 72 billion markets by 2025 and is growing at a CAGR of 28%. 

Rajasthan which already receives a large volume of national and international tourists can be a perfect ground to start a Yoga center, Ayurvedic massage center, Pancha Karma center, mindful & meditation training business, etc. Likewise, there is ample scope for other alternative healing businesses such as traditional spa and massage business, hydrotherapy, Swiss massage, aromatherapy, etc. 

The state is also close to National Capital, which makes it a perfect weekend spa destination for the Delhi region. Indulging in a Spa or Ayurveda session while watching the towering monuments and forts of Rajasthan will be a unique experience in itself. 

How The India Watch can help? 

The India Watch can help new hospitality businesses, hoteliers, real estate developers, and other businesses looking to enter the high-potential market of Rajasthan, through our custom-market research business solutions. Our range of services includes: 

• Conduct preliminary analysis and detailed project reports for new businesses, hotels, resorts, spas, homestays, etc. in Rajasthan. 
• Prepare feasibility reports for hotels, resorts & spas, conventions, restaurants, retail & mixed-use projects. 
• Work with existing hospitality companies and hotel chains to conduct consumer sentiment surveys, consumer satisfaction surveys, competitive analysis, generic market studies, etc. 
• Work with existing tour operators, hospitality companies, wellness businesses, etc. to chalk out market intelligence analysis and strategic growth plans. 
• For any business-related query, feel free to connect with us at info@theindiawatch.com