The Union Budget 2025 has placed India’s tourism sector in the spotlight by proposing the development of the top fifty destinations through a challenge mode, with performance-linked incentives for states to improve cleanliness, visitor amenities, and sustainability. This initiative highlights the urgent requirement for a unifying framework – one that converges diverse local contexts. Recognizing these specific strengths and challenges is critical for moving beyond boosting visitor numbers and focus on better destinations to live. The focus must be on sustainable, well-managed growth of the tourism destinations.

A “destination” is more than just geography, it’s a living experience shaped by culture, heritage and community. From the serene backwaters of Kerala to the vibrant streets of Rajasthan, each place has a distinct ecological or social footprint. However, India’s multi-stakeholder tourism sector remains entangled in fragmented governance, inadequate infrastructure, and a lack of local participation – factors that have stifled its true potential. Thus, the disarray and absence of accountability have left India’s tourism industry languishing, contributing a mere 5% to the GDP. There is a need for a focused organization that can bring together multiple stakeholders and align their goals.

Destination Management Organisations (DMOs) can address these challenges by acting as centralised, accountable entities that bring together government bodies, local communities and the private sector. A DMO is essentially a single coordinating entity involving public and private stakeholders to plan, develop and market a specific destination. They are structured to ensure effective planning, resource allocation and long-term stewardship. By balancing top-down policy incentives with local realities they translate broad government directives into tangible on-ground progress. Overlapping responsibilities of state and central authorities and the challenge of aligning private funding with public goals can impede progress. DMOs address these issues by consolidating roles into a single, accountable framework – an approach that avoids extra bureaucracy and is particularly vital in vast nation like India.

A core advantage of DMOs is their ability to develop destination-specific plans based on reliable data and clear progress indicators, such as visitor satisfaction, cleanliness, heritage preservation and equitable benefit distribution. This approach minimizes redundant efforts, streamlines decision-making, and establishes transparent performance benchmarks. With the new Budget’s performance-linked incentives, DMOs can monitor improvements in infrastructure, refine strategies, and safeguard cultural identities, ensuring every destination stands out. By tracking key performance indicators, DMOs consolidate efforts, prevent siloed operations and provide a unified framework for managing visitor experiences, capacity and revenue distribution.

Equally critical is the integration of sustainability into tourism planning. Through guidelines from international bodies and best practices, DMOs can guide stakeholders in balancing economic aspirations with ecological and cultural considerations. Whether it involves managing visitor capacity in fragile ecosystems, engaging local communities in tourism decisions, or mitigating waste in popular sites, DMOs prioritize the long-term health of both the environment and local livelihoods. By situating community representatives at the decision-making table, DMOs help protect cultural heritage from commodification, empower entrepreneurial initiatives and ensure that tourism gains are shared equitably.

Internationally, USA tourism, Switzerland Tourism and Visit Scotland exemplify holistic destination management by preserving local character, sustaining ecological integrity, and ensuring benefits return to host communities, all under cohesive governance and branding that draw high-value visitors. These examples underscore the importance of consistent, long-term strategies informed by data and dialogue among all stakeholders. Swadesh Darshan 2 signals India’s shift to destination-centric tourism, which DMOs can fortify by offering a framework that methodically coordinates on-ground execution, addresses local concerns, and meets national benchmarks.

Ultimately, the next step is to institutionalise DMOs in India’s tourism strategy. Legislative clarity and strong policy backing can encourage every destination – be it a bustling urban centre or a remote ecological gem – to form or strengthen a DMO. Community voices must remain central to these organizations, ensuring that tourism reflects and respects local values while also fostering economic growth. Routine audits, combined with transparent review mechanisms, can enhance accountability and adapt plans as circumstances change.

The Union Budget 2025 offers a springboard for a more cohesive, forward-thinking tourism model. By leveraging DMOs, India can steer away from a reactive, number-centric strategy toward one that fosters sustainability, community benefit and global competitiveness. Given the sector’s immense potential this recalibration could yield significant rewards for both local economies and travellers seeking authentic, well-managed experiences. More than ever, India has the policy impetus and the on-ground diversity to become a global exemplar of how destinations can be thoughtfully developed and carefully managed to benefit all. DMOs, with their emphasis on collaboration, robust planning and inclusive governance, can be the catalysts that ensure India’s destinations remain vibrant, resilient, inclusive and culturally proud for generations to come.

Dr Aditi Choudhary is Assistant Professor, Indian Institute of Tourism & Travel Management, Noida. Dr Aditi Rawat is Associate Fellow, Pahle India Foundation. Mehek Kaur is Senior Research Associate, Pahle India Foundation.