As India solidifies its position as a global tourism powerhouse, the financial dynamics of the industry are drawing increasing attention. While destinations like the Taj Mahal and Goa's beaches remain iconic, tourism spending varies significantly across the states. So, which states are leading the charge in tourism investments, and where do domestic and foreign visitors leave the biggest financial footprint? Let's dive in.

Tourism in India isn’t just about destinations anymore; it’s a battleground for economic dominance, with states vying for the lion’s share of domestic and international visitors. With a 120% surge in tourism-related investments between 2019 and 2023, the competition to attract travelers has never been fiercer. From Uttar Pradesh's cultural magnetism to Gujarat’s strategic innovations, India's tourism map is being redrawn—and the numbers reveal surprising trends.

Where Domestic Travelers Are Heading—and Spending

When it comes to domestic tourism, Uttar Pradesh is the undisputed leader, attracting a staggering 317.91 million tourists in 2022, accounting for 18.37% of the national total. Pilgrimages to Varanasi, Ayodhya, and Mathura, coupled with world-famous landmarks like the Taj Mahal, have cemented its top spot.

Following closely is Tamil Nadu, with 218.58 million visits. Known for its majestic temples, hill stations, and a coastline steeped in history, Tamil Nadu has become a must-visit for culture enthusiasts. Meanwhile, Andhra Pradesh, driven by spiritual hubs like Tirupati and picturesque beaches, registered 192.72 million visits, securing third place.

These three states aren’t just destinations—they’re economic engines. Local economies thrive on spending by domestic tourists, ranging from train tickets and hotel stays to street food and souvenirs.

Karnataka and Gujarat round off the top five. Karnataka’s appeal lies in its mix of tech-driven urban centers and serene retreats like Coorg and Hampi. Gujarat, which has invested heavily in showcasing its unique culture through events like the Rann Utsav, has risen as a tourism powerhouse.

India’s Foreign Tourist Magnets

When it comes to foreign tourist visits, Tamil Nadu is the undisputed leader. With its iconic temples, cultural festivals, and wellness tourism, the state saw 4.68 million foreign tourists in 2015, making up 20.1% of India’s international tourism market. Maharashtra, thanks to Mumbai’s status as the financial capital and a hub of Bollywood tourism, came in second with 4.41 million visits, while Uttar Pradesh drew in 3.10 million visitors for its globally recognized heritage.

Delhi, the capital city, and West Bengal, with the cultural allure of Kolkata and the Sundarbans, rounded out the top five. Foreign tourists tend to spend more on luxury accommodations, guided tours, and shopping, contributing significantly to local economies.

While specific data on tourism spending by state in India is limited, we can infer trends based on tourist visit statistics and recent investments in tourism infrastructure.

Domestic Tourist Visits:

In 2022, the top states for domestic tourist visits were:

1. Uttar Pradesh: 317.91 million visits (18.37% share)

2. Tamil Nadu: 218.58 million visits (12.63% share)

3. Andhra Pradesh: 192.72 million visits (11.13% share)

4. Karnataka: 182.41 million visits (10.54% share)

5. Gujarat: 135.81 million visits (7.85% share)

These states collectively accounted for a significant portion of domestic tourism, which likely correlates with higher tourism spending.

Foreign Tourist Visits:

In 2015, the leading states for foreign tourist visits were:

1. Tamil Nadu: 4.68 million visits (20.1% share)

2. Maharashtra: 4.41 million visits (18.9% share)

3. Uttar Pradesh: 3.10 million visits (13.3% share)

4. Delhi: 2.38 million visits (10.2% share)

5. West Bengal: 1.49 million visits (6.4% share)

Tourism Spending Soars with Strategic Investments

While the visitor numbers tell part of the story, the real game-changer lies in how states are investing in their tourism infrastructure. Between 2019 and 2023, capital expenditure on tourism surged by a staggering 120% across Indian states, as per a report by Economic Times.

Gujarat, for instance, has climbed to the top of the ranking list for tourism investments. From developing the Statue of Unity as a global attraction to promoting its vibrant Rann Utsav, the state has shown how strategic investment can transform its tourism appeal. Similarly, Uttar Pradesh and Tamil Nadu are leveraging public-private partnerships to expand infrastructure, improve accessibility, and market their destinations globally.

Tourism: A Numbers Game with High Stakes

Tourism isn’t just about showcasing culture or nature anymore; it’s a strategic pillar of state economies. The rising numbers are proof. In 2022, India’s tourism sector contributed $150 billion to the economy, supported 39 million jobs, and accounted for 6.8% of GDP, according to reports.

States like Uttar Pradesh and Tamil Nadu, which consistently dominate both domestic and international tourism statistics, are reaping significant financial rewards. For Gujarat, the aggressive push into tourism has transformed its landscape, proving that strategic investments can create a global draw even in previously overlooked regions.

What Lies Ahead?

The battle for tourism dominance in India is far from over. While the numbers tell a story of winners like Uttar Pradesh, Tamil Nadu, and Gujarat, other states are rapidly catching up. The Northeast, for instance, is leveraging its unexplored beauty, while Rajasthan continues to evolve its appeal beyond palaces and deserts.

For travelers, this fierce competition is a win. Better infrastructure, more curated experiences, and improved connectivity mean that exploring India has never been more enticing. For the states, it’s about balancing preservation with progress—a tightrope walk that will define the future of Indian tourism.

What Does This Mean for Travellers?

Whether you’re a domestic traveler planning your next road trip or a foreign tourist drawn by India’s timeless allure, one thing is clear: India’s states are pulling out all the stops to make your experience unforgettable. And behind every Instagram-worthy picture of a temple, beach, or hill station lies a story of billions invested to make it happen.

As India continues to invest heavily in tourism, the question remains: Are states spending more to attract tourists, or are tourists spending more to explore these destinations? The data points to a virtuous cycle—greater investment leads to higher spending by visitors, creating a win-win scenario for both the industry and the economy.

This feature is part of our series on the economic dynamics of Indian tourism. Stay tuned as we uncover the untold stories behind the numbers shaping one of the world’s most vibrant travel destinations.