Beach tourism battles climate change but opportunities grow

India's extensive coastline, spanning over 7,500 kilometers, offers diverse opportunities for romantic getaways and exploration, from vibrant cultural hubs to serene island escapes. The coastline is defined by the Arabian Sea in the west and the Bay of Bengal in the east, both flowing into the Indian Ocean in the south.

India's coastline offers diverse travel opportunities including vibrant beach holidays in Goa and Kerala, cultural and historical exploration in Puducherry and Kanyakumari, adventure activities like scuba diving and snorkeling in the Andaman Islands and Lakshadweep, and unique experiences such as cruising the Sundarbans mangrove forests or driving the scenic Konkan coastal route.

India’s cruise tourism is charting a promising course, tapping into its vast and diverse network of rivers, coastlines and ports to offer unique travel experiences that blend leisure with cultural discovery. With major initiatives like the Cruise Bharat Mission and Maritime India Vision 2030, the government is laying a robust foundation to position India as a global cruise destination. From the tranquil backwaters of Kerala to the majestic Ganga and the pristine stretches of the Yamuna and Brahmaputra, cruise tourism is not only unlocking new economic potential but also enabling inclusive growth by creating jobs and boosting local economies. As infrastructure develops and awareness grows, cruise tourism is set to become a defining pillar of India’s travel and tourism landscape, inviting the world to rediscover India.

The beach tourism industry in India in 2025 is a growing sector, driven by government initiatives and increasing domestic and international interest, with a focus on sustainability and niche segments like wellness and luxury travel. Goa's Calangute Beach is the most visited by foreign tourists, while other destinations include Baga, Palolem, Kovalam, and Puri. Challenges persist in infrastructure and regulations, but the government is working to improve these areas.

The beach tourism market size is expected to see strong growth in the next few years. It will grow to $329.58 billion in 2029 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to rising investment in the tourism sector, growing penetration of social media among gen-z, gaining knowledge and understanding of different cultures, rising in booking for vacation rentals, and increasing in the recreational activities. Major trends in the forecast period include technological advancements, sustainable beach tourism, growth in beachfront and coastal sports, influence of social media, and cultural events and social activities.

The forecast of 6.6% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariffs on imported resort furnishing and maintenance equipment may burden beach resort development, ultimately affecting the traveler experience. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growth of international tourism is anticipated to drive the expansion of the beach tourism market in the coming years. International tourism involves individuals traveling and staying in destinations beyond their usual environment and across national borders for purposes such as leisure, business, or other activities. This growth is attributed to factors such as rising disposable incomes, advancements in air travel, the availability of high-speed trains, and other transportation innovations, as well as the increase in global trade and business engagements. Beach tourism offers international visitors a diverse experience that includes relaxation, adventure, cultural immersion, and recreational activities in scenic coastal areas.

Leading companies in the beach tourism sector are increasingly focusing on sustainability initiatives, such as eco-friendly accommodations, to gain a competitive edge. These eco-friendly accommodations emphasize environmental stewardship by utilizing renewable resources, minimizing waste, and supporting conservation efforts.

The sudden escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly affecting the recreation sector, especially in the supply of imported sports gear, outdoor equipment, and leisure products. Manufacturers and retailers are grappling with increased costs for goods like bicycles, camping supplies, fitness equipment, and gaming consoles - many of which rely heavily on international supply chains with few domestic alternatives. Small recreational retailers are particularly vulnerable, with some cutting back on stock or raising prices to manage shrinking profit margins. Event organizers and recreational venues are also experiencing rising costs for imported materials and equipment. In response, the industry is shifting toward suppliers in non-tariff regions, boosting local procurement efforts, and advocating for tariff exemptions on widely used recreational goods.