San Francisco, the iconic Golden Gate city, is embracing a unique source of hope for its tourism industry’s recovery—Indian visitors. The slow reopening of Asian markets due to pandemic-related restrictions significantly impacted travel growth, but with India’s resurgence as a top visitor market, optimism is in the air.
In 2022, San Francisco welcomed 150,000 Indian visitors, a number expected to surge by 34 percent in 2023.
“In 2023, we are expecting the visitor volume out of India to match up with 2019 levels, making India the first overseas market, excluding Canada and Mexico, to return to pre-pandemic norms,” revealed Hubertus Funke, Executive Vice-President & Chief Tourism Officer of the San Francisco Travel Association (SFTA).
San Francisco Travellers
In 2019, San Francisco recorded 2.10 lakh visitors from India, and by the end of 2023, this number is anticipated to reach 2.11 lakh. However, while the number of visitors is rebounding, spending by Indian travelers has yet to see a full recovery. “Indian travelers spent $497 million in 2019, and we are expecting that number to be $436 million by the end of this year. So, in terms of spending, we are not quite there yet,” cautioned Funke.
Pre-pandemic, India was the fastest-growing market for San Francisco, and the post-Covid phase sees this trend reemerging. “India is the third largest overseas market after the UK and Germany. While the two nations have been traditionally strong markets, we are not seeing the same dynamic growth that we are seeing for India.
In 2019, 20-25 percent of our visitors came from international markets, but those visitors made up for 65 percent of all spending. This shows how significant international markets are for San Francisco, and within that, India is the driving force,” elaborated Funke.
For San Francisco, India is not just a critical market, but also a gateway to the world. Kevin Bumen, Chief Financial and Commercial Officer at San Francisco International Airport, stated, “Delhi alone ranks 8th in our passenger traffic, and Mumbai, thanks to more direct flights, is now 2nd in 2023 with around 200 passengers daily, as opposed to Delhi’s 300 per day.”
The growth in the Indian market could have been even more remarkable if not for certain constraints. Bumen highlighted, “United Airlines is currently unable to fly between India and the US due to Russian airspace restrictions.
We are in talks with airlines for a new service, although there is no development at present. Looking ahead, the latter half of the decade promises more upcoming airports in the Indian market, indicating significant room for growth.”
Technology is playing a pivotal role in fueling this growth. San Francisco is evolving into a hub for artificial intelligence (AI), attracting tech enthusiasts from India.
“San Francisco is considered a cerebral valley rather than just Silicon Valley, with 20 leading AI companies establishing a presence in the city. We are witnessing a growing appetite for new technology, aligning perfectly with India’s tech-driven aspirations,” added Funke.
Moreover, the Bay Area boasts the largest Indian population in the US, creating a natural synergy. Funke noted, “We see segments blending as travelers coming to visit friends and family extend their stay to explore the city, or those arriving for business meetings stay a couple of days longer for leisure travel. This unique trend sets the Indian market apart from others.”
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