As tensions in the Middle East – particularly in the Gulf region – show signs of de-escalation, India is looking to attract more tourists from the Arab world.While the US–Israel war on Iran has had a strong impact on global tourism, a period of peace between Washington and Tehran – albeit temporary – could help the sector recover.
As a result of US and Israel’s attacks on the Islamic Republic, which prompted Tehran’s retaliation against neighbouring nations hosting American military bases, India’s economy was negatively impacted. Foreign investors, according to reports, have pulled out more than $20 billion from Indian equities since the war began. At the same time, the world’s third-largest oil importer announced increased fuel prices and austerity measures.
But the country’s tourism sector showed remarkable resilience. The domestic tourism industry seems to be experiencing a significant boom, driven by rising middle-class disposable incomes, improved highway infrastructure, and the growing influence of social media.
That, however, does not mean India – attracting around 20.09 million international tourists in 2025 – is not actively seeking to further boost its appeal among overseas visitors. Although the Gulf has traditionally been a major outbound travel destination for Indians, the world’s most populous nation aims to attract more visitors from the energy-rich region.
Kerala appears to be India’s standout destination in this regard, having long been a preferred choice for Arab tourists due to its close historical trade links with the Gulf. Those ties date back centuries, when maritime trade between the Malabar Coast and the Arabian Peninsula facilitated the exchange of spices, textiles, and ideas, laying the foundation for enduring cultural and economic ties.
As one of the most popular tourist destinations in the country, Kerala is targeting around 300,000 Arab tourists annually. Beyond its serene backwaters, palm-lined beaches, and lush hill stations such as Munnar and Wayanad, the state offers traditional Ayurvedic wellness treatments, houseboat cruises, and a rich cultural heritage reflected in its classical dance, cuisine, and festivals.
It is therefore no surprise that the stateplans to host the Kerala Travel Mart (KTM) 2026 in Kochi from September 24–27, bringing together global buyers and stakeholders to further strengthen its position in international tourism. The event is expected to boost partnerships and showcase Kerala’s tourism offerings to key markets, including the Arab world.
According to regional tourism officials, Arab travellers already contribute significantly to Kerala’s inbound tourism and are particularly important as they tend to visit during the off-season between June and September, helping stabilise tourism revenues throughout the year. Building on that momentum, Kerala is now aiming to position itself more strongly as a year-round destination for Gulf visitors, with expanded tourism infrastructure and targeted outreach to key Arab markets.
Given that Arab visitors account for more than 15 percent of Kerala’s total foreign tourist arrivals and are among the highest spenders it is no wonder that monsoon tourism in the state continues to thrive on strong visitor inflows from the Gulf. This is particularly evident during the off-season months, when the region’s extreme summer heat makes Kerala an attractive escape.
For years, regional tourism authorities have sought to boost arrivals from the Gulf by promoting Kerala’s lush monsoon landscapes as a refreshing escape from the intense summer heat of the Middle East. Now, despite the US-Iran war, they expect Arab tourists to be a major catalyst for the growth of segments such as Ayurveda – a traditional Indian system of holistic medicine and wellness – medical tourism, luxury tourism and the souvenir industry.
Indeed, Arab tourists are known to favour Kerala’s premium experiences, including wellness retreats, houseboat stays, and luxury resorts across destinations such as Munnar, Kumarakom, and Kochi. Their growing presence has also encouraged Kerala to deepen its engagement with the Arab world, reflecting the increasing importance of Gulf markets to the state’s tourism industry.
Strong air connectivity has further reinforced Kerala’s appeal among Arab visitors, with Kochi serving as one of the key entry points for travelers from across the Gulf. Despite short-term disruptions resulting from the Iran war, long-term tourism demand is expected to remain resilient once conditions stabilise.
Thus, in parallel with boosting domestic tourism, Indian authorities are likely to step up efforts to attract more visitors from the Arab world, building on Kerala’s strong popularity and growing air links with Gulf countries.Kerala’s tourism industry is, therefore, expected to continue relying heavily on Gulf travel, with regional air links playing a key role in international arrivals.
But to ensure continued growth in the sector, peace in the Middle East is essential.That is why, beyond those directly affected by the conflict, a potential peace deal could also bring significant benefits to India, particularly Kerala.