When flying to Dubai is cheaper than a weekend in Goa, you know the system is broken. Angel investor Ujwal Sutaria sums up this growing frustration with a blunt question on LinkedIn: "Is India pricing itself out of its tourism boom?".
Sutaria lays bare a troubling shift — what was once an easy domestic escape is fast becoming a luxury, as India's real estate juggernaut quietly reshapes the travel landscape.
According to Sutaria, a weekend getaway to Dubai or Georgia now costs less than a trip to Goa, Manali, or Mumbai. What used to be an affordable travel experience is now reserved for those who can pay top dollar — and, as he points out, the reason goes far beyond ₹400 airport tea or overpriced hotel rooms.
At the heart of this shift, Sutaria writes, is India’s overheated real estate market. Over the past decade, property prices have surged, and tourism is taking the hit. Hotels are raising rates to recover massive investments sunk into increasingly expensive land and property.
Restaurants, he notes, are also struggling with skyrocketing rents and are hiking prices to survive. Retailers in tourist hubs, burdened with similar costs, are pushing those expenses onto consumers. "Luxury travel continues to grow but budget travel is getting squeezed out, making domestic tourism increasingly exclusive," Sutaria warns.
He backs this up with striking data:
But he also points to a silver lining. Entrepreneurs who focus on affordable stay alternatives, offbeat destinations, or innovations in transport infrastructure could seize this moment and unlock the next big opportunity in Indian tourism.
"India’s tourism space is changing. Do you think it will make Indian tourism better or worse?" Sutaria asks.