Israel’s Minister of Tourism, Haim Katz, wrapped up a pivotal visit to India aimed at strengthening bilateral tourism ties and engaging with key industry players. The visit featured multi-city networking events, high-profile meetings, and Israel’s strong presence at OTM 2025, reinforcing Israel’s commitment to boosting tourism from India.

Strengthening Tourism & Air Connectivity

During his visit, Minister Katz met with India’s Minister of Tourism, Gajendra Singh Shekhawat, to discuss enhancing cooperation between the two nations. They explored ways to leverage the deep historical and cultural connections shared by India and Israel.

The Israel Ministry of Tourism (IMOT) delegation, including Ambassador Peleg Lewi, Foreign Affairs Advisor, and Hassan Madah, International Marketing Director, IMOT, also met with Air India CEO Campbell Wilson. The discussions focused on improving air connectivity and creating seamless travel opportunities for Indian tourists heading to Israel.

Israel at OTM 2025: A Grand Showcase

Israel made a strong impression at OTM 2025, one of India’s largest travel trade exhibitions, held at Jio World Convention Centre, Mumbai. Minister Katz inaugurated the event, addressing a distinguished audience of travel professionals, tourism stakeholders, and media representatives.

Speaking at the event, Minister Katz emphasized,
"India is a critical market for us, and we are committed to deepening our engagement with the Indian travel trade. With the launch of the e-Visa system and our continued presence at key exhibitions, we are confident of achieving new milestones in 2025."

Israel’s pavilion at OTM stood out, winning the Best Booth Decoration Award for its visually engaging and interactive showcase of the destination.

Exclusive Networking Events in Delhi & Mumbai

IMOT hosted exclusive networking evenings in Delhi and Mumbai, bringing together travel associations, industry leaders, and OTAs. These events facilitated discussions on collaborative strategies to position Israel as a preferred destination for Indian travelers.

"We witnessed a surge in the number of Indian travelers visiting Israel in 2024, which presents the right moment for us to promote the destination. We want to ensure that Israel is safe and welcoming to tourists. We urge Indian travelers to experience our country in a more holistic way," Minister Katz stated.

Tourism Growth & Air Connectivity Resumption

Despite geopolitical challenges, India remained a strong source market for Israel in 2024, with 9,600 Indian tourists visiting between January and December.

With the recent ceasefire announcement and Air India resuming flights to Israel from March 2025, tourist arrivals are expected to rise significantly. In total, Israel welcomed 961,700 global tourists in 2024.

e-Visa Launch for Indian Travelers

To make travel easier, Israel has launched a new e-Visa system for Indian tourists, particularly families and multi-generational travelers. This digital service simplifies the application process and integrates with Israel’s Entry Travel Authorization (ETA) system.

The Mahakumbh Mela 2025, currently underway in Prayagraj, Uttar Pradesh, is the world’s largest spiritual congregation, deeply rooted in Hindu traditions. Beyond its religious and cultural significance, the Maha Kumbh is playing a pivotal role in driving India's spiritual tourism sector, attracting millions of visitors and generating substantial economic activity.

Authorities project that Mahakumbh 2025 will welcome over 400 million pilgrims, including a growing number of international visitors. By January 19, 2025, over 73 million people had already attended. In response to this unprecedented scale, the Uttar Pradesh government has allocated ₹7,500 crore for infrastructure upgrades, a sharp increase from the ₹4,200 crore spent in 2019. The event is expected to generate ₹2 lakh crore in direct revenue, with total transactions projected between ₹2–4 lakh crore, contributing over 1% to India’s GDP.

Economic Ripple Effects Across Sectors

The economic impact of the Maha Kumbh extends across multiple industries, particularly in travel, hospitality, and local businesses. With surging domestic and international travel bookings, airlines, railways, and private transport operators are witnessing unprecedented demand.

Gopal Krishna Agarwal, National Spokesperson of BJP for Economic Affairs, highlights the broader impact:

"Maha Kumbh's spiritual significance is attracting global attention, fostering greater interest in India as a travel destination. Besides its religious importance, Maha Kumbh serves as an economic catalyst, transforming various sectors of India. It's a massive economic and cultural phenomenon, generating multi-billion rupees worth of economic activity and empowering local businesses. In addition, the government's tireless efforts ensure Maha Kumbh creates a ripple effect on global interest in India's spiritual tourism potential. Further, initiatives like the Maitri Bodh Cultural Economic Summit align with this phenomenon, fostering collaboration between culture and economy, showcasing India's economic strength rooted in our heritage."

Hospitality Sector Sees Unprecedented Growth

The hospitality industry is a key beneficiary of the Maha Kumbh, with the event extending beyond Prayagraj into cities like Varanasi, Lucknow, and Kanpur, driving an increased demand for hotels, transport, and tourism services. Many visitors are extending their trips to explore historical and cultural sites, leading to a significant rise in bookings.

Ambika Saxena, CEO of TWH Hospitality, emphasizes this shift:

"Maha Kumbh is not just a spiritual gathering but a transformative economic force reshaping India's hospitality and tourism landscape. The unprecedented influx of domestic and international visitors is driving an unparalleled demand for accommodations, transport, and hospitality services, creating immense opportunities for innovation and investment. This event exemplifies how cultural heritage can be a powerful engine of economic growth, reinforcing India's position as a global tourism powerhouse. We see this as more than just an opportunity. It is a responsibility to elevate India's global standing and redefine the future of spiritual tourism."

Positioning India as a Global Spiritual Tourism Hub

Mahakumbh 2025 is a unifying force, seamlessly blending faith with commerce and driving long-term economic growth. The sheer scale of the event and the government’s investment in infrastructure reinforce India’s position as a leading destination for spiritual and cultural tourism. With millions of visitors and sustained global interest, the Maha Kumbh is set to further strengthen India’s status as a premier spiritual tourism hub, attracting both religious travelers and cultural enthusiasts for years to come.

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has once again sidelined India’s inbound tourism sector and the Incredible India campaign. While the total budget allocation for the Ministry of Tourism remains nearly unchanged at INR 2,541 crore (compared to INR 2,484 crore in 2024-25), the allocation for overseas promotion and publicity, including Market Development Assistance (MDA), has dropped drastically to INR 3.07 crore.

This sharp cut follows the previous budget, which had set aside INR 33 crore for the same category, an amount that was retained in the revised estimates as well. Industry stakeholders have expressed disappointment, stating that the government’s approach is pushing the inbound tourism sector towards self-reliance rather than providing necessary support.

Instead, the government has prioritized domestic tourism promotion, allocating nearly INR 137 crore out of the total INR 140 crore earmarked for branding and promotions. This shift underscores the administration’s focus on promoting domestic travel over attracting international visitors.

Aviation Sector Sees Budget Cuts

The aviation industry has also witnessed a significant cut in allocations for 2024-25. A major chunk—INR 1,158.79 crore—has been assigned to AI Asset Holdings Ltd. to service loans transferred to the special purpose vehicle (SPV) as part of Air India’s financial restructuring. This marks a decrease from INR 1,144.49 crore in 2023-24, with the revised estimate standing at INR 713.92 crore.

Industry Reactions

Reacting to the budget, a prominent tour operator stated, “The government is indirectly asking the inbound tourism industry to be ‘Atma Nirbhar.’ While the budget supports hotels, homestays, and domestic tourism, there’s absolutely nothing for inbound tourism, which is a major foreign exchange earner for the country.”

Another industry expert pointed out that while Tax Collected at Source (TCS) relaxations will boost outbound travel, there are no concrete measures to support inbound tourism. “People with a PAN card can now claim tax reimbursement, making outbound travel more attractive, but there’s no stimulus for foreign tourists coming to India,” he added.

Moreover, the gap between budget estimates and revised allocations for tourism continues to widen. The initial budget estimate for 2024-25 was INR 2,485 crore, but the revised estimate dropped sharply to INR 855 crore—just 34% of the planned allocation.

Conclusion

While the government has introduced measures to ease e-visa processes and implement visa fee waivers for select countries, the severe cut in overseas marketing funds raises concerns about India's ability to attract global tourists. As the tourism industry recovers post-pandemic, stakeholders believe that sustained international branding and promotions are crucial to maintaining India’s competitive edge in global tourism.