India has been ranked as the international destination with the greatest tourism potential in a new report.

It topped the 2025 edition of GlobalData’s Tourism Potential Index due to a blend of cultural richness, strong infrastructure development programs, and impressive growth in both visitation and tourism spending. The index offers a comprehensive assessment of the potential of 60 major destinations.

Nicholas Wyatt, global head of travel and tourism research at GlobalData, commented: “India performed strongly in multiple pillars that helped it cement top spot overall. Impressive forecast growth in both tourism flows and spending provide the building blocks. This is then supplemented by a strong attractiveness score as the country’s rich and diverse culture translates into the presence of many UNESCO Heritage Sites that are of interest to international and domestic travelers alike.

“The third key driver is the country’s high score in the infrastructure and development pillar, which is underpinned by an extensive national infrastructure programme and India’s success in attracting foreign direct investment (FDI) into its tourism sector.”

While India secured the number-one spot, there is room for improvement. The country scored below average in both the risk and sustainability pillars. Notably, China sees the same pattern, and these are areas in which Japan was able to gain ground despite not being a stellar performer itself.

Japan’s third placing owes much to the country’s current popularity. 2024 was a record-breaking year for international visitation in Japan and this momentum shows no signs of slowing. Consequently, Japan registered the second-highest score (behind only India) in the tourism activity pillar of the index.

Development and investment key to China’s high ranking

China’s performance in the tourism activity pillar shouldn’t be underestimated but the infrastructure and development pillar are where it really shines. China registered maximum scores in the tourism construction projects, and FDI sub-pillars. This is then complemented by another maximum score in the capital investment in tourism sub-pillar of the macroeconomics pillar.

“China’s own government and private sector continues to drive development apace, and this is reflected in its high ranking,” added Wyatt. “Additionally, as they see the value and potential in the market, foreign players have upped their investments in – and bets on – the Chinese market. Crucially, China is not only successfully attracting travellers from overseas but also has an enormous domestic tourism industry on which it can lean, and this only serves to strengthen its appeal to companies looking to expand.”