Tourism operators have urged the government to discuss a long-term mutual visa-free scheme between Thailand and India, which is set to become the third-largest economy in 2027.
Somsong Sachaphimukh, vice-president of the Tourism Council of Thailand, said the current temporary visa exemption for India had helped to accelerate the Indian market.
She said positive momentum should continue for all of 2024 as the Tourism Ministry planned to extend the scheme for two years after the current scheme ends on May 10.
The Indian market provided the fifth-largest arrivals, with 258,269 tourists, as of Feb 18.
India has been projected to overtake Germany as the world's third-largest economy in 2027, after Germany recently replaced Japan in the third rank.
Mrs Somsong said this represented a good opportunity for Thailand to attract more high-quality tourists from India.
In the long run, a mutual visa-free programme between Thailand and India should be discussed to promote tourism and trade for both countries as it would incentivise airlines to provide more flights, she said.
The growth of the Indian market will come from a large young working population aged 25-40 years old, accounting for around 40% of the total population, as well as those in the middle-income and highly-educated segment.
"Indian tourists typically travel abroad with family and spend a fortune on tourism, either hotel services or shopping," said Mrs Somsong.
She said Indian expenditure could be 60,000-100,000 baht for a trip of around seven days in Thailand.
This market also has the potential for business meetings, incentive trips, and wedding ceremonies which would cost 50-100 million baht each.
At present, flight resumption between Thailand and India is increasing, even with slots restricted to only six major cities in India, she said.
Mrs Somsong said the government should look into attracting flights from India's second-tier cities, which have strong demand and high purchasing power, such as Amritsar and Pune.
She said the government should also support charter flights to U-tapao Airport in Chonburi and Chiang Mai Airport in addition to Phuket, and upgrade duty free shopping at those airports.
Other challenges include insufficient Indian restaurants across major cities.
Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association, said India remained in the top five largest arrivals in Phuket.
In January, 25,524 Indian tourists entered Phuket via its international airport, following only Russia and China, with the number of Indians surpassing that of 2019 by 15%.
Mr Suksit said the influx of this market benefited all scales of hotels, helping many hoteliers raise room rates during the high season.
He said the occupancy rate should reach 90% in February, thanks to the Indian market and long-haul guests.
