Full potential of India's tourism offering 'constrained' by regulatory complexity: Report

New Delhi, Jun 30 (PTI): India possesses a rich, diverse and globally competitive tourism offering, but its full potential remains "constrained by regulatory complexity" and frictions in international accessibility, according to a key report released on Tuesda.

Written By : PTI | Updated at : 01 Jul 2026 12:46 AM (IST)

New Delhi, Jun 30 (PTI): India possesses a rich, diverse and globally competitive tourism offering, but its full potential remains "constrained by regulatory complexity" and frictions in international accessibility, according to a key report released on Tuesday.

The report, by the NITI Aayog and Ministry of Tourism, also offers a range of recommendations in various segments of the tourism sector, including removing the "state-level entry taxes/fees on motor vehicles already holding the All India Tourist Permit" and extending the minimum validity of the All India Tourist Permit from 90 days to 1 year.

It has also recommended to "constitute a dedicated EAC (Expert Appraisal Committee), on request of states, to review applications for the grant of Environmental Clearance (EC) for tourism related projects"; as also raising the cap on the number of rooms that can be offered by homestay units from "six rooms to nine rooms".

The report was released at an event held at The Ashok hotel, in the presence of Union Tourism Minister Gajendra Singh Shekhawat.

"India’s tourism sector stands at a critical inflection point. While the country possesses a rich, diverse and globally competitive tourism offering, its full potential remains constrained by regulatory complexity and frictions in international accessibility," says the nearly 100-page report, titled -- Unlocking Growth in Tourism and Hospitality Sector.

Bridging this "gap" is essential to unlocking growth, enhancing competitiveness and strengthening India’s position in global tourism flows, it says.

The analysis in this report highlights that the "constraint is not one of demand or underlying assets, but of enabling conditions".

On the supply side, regulatory fragmentation, duplicative approvals and high compliance burdens continue to slow investment, delay project execution, and limit the scale and quality of tourism infrastructure, the report flagged.

On the demand side, despite progress through mechanisms such as e-visa, India’s visa regime has "not yet evolved to match the accessibility, scale, and user experience offered by leading tourism economies, particularly in facilitating repeat and high-value travel," it further said.

The reforms outlined in the report focus on two complementary and mutually reinforcing levers -- regulatory simplification and visa facilitation.

"Together, they represent a transition from a system characterised by procedural complexity and fragmented governance to one that is predictable, transparent, and visitor-centric," it added.

As India advances towards its broader economic and development goals, tourism has the "potential to emerge as a major driver of growth, employment, foreign exchange, and regional development," it posts.

"Realising this potential will depend on the country’s ability to create an ecosystem that is efficient, accessible, and globally competitive," the report says.

The reforms proposed in this report provide a "clear and actionable pathway" towards this objective, with regulatory transformation and visa facilitation forming the foundation for positioning India as a leading global tourism destination, it says. PTI KND AMJ AMJ

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