The tourism industry across Southeast Asia is undergoing a dramatic transformation, as a wave of visa-free policies has unlocked the region for Indian travellers. Malaysia, Palau, the Philippines, and Sri Lanka have all implemented visa-free entry for Indian passport holders, resulting in a major spike in travel demand and reshaping regional tourism patterns.
With India now one of the fastest-growing outbound travel markets globally, these strategic policy changes are designed to attract Indian tourists and boost tourism-dependent economies across the region. Agoda, one of Asia’s leading digital travel platforms, reports a record rise in hotel searches and bookings for 2025, correlating directly with the new visa-free access policies.
Malaysia: A Regional Powerhouse for Visa-Free Travel
Malaysia has positioned itself as a leader in welcoming Indian tourists. Since November 2023, Indian passport holders can visit Malaysia without a visa for up to 30 days. As a result, Agoda data shows a 47% year-on-year increase in hotel searches by Indian travellers between July and December 2024 for travel through May 2025.
Top Malaysian destinations for Indian tourists include:
- Langkawi (+118% bookings) – famed for its scenic beaches and resorts.
- Kuala Lumpur (+28%) – the bustling capital offering shopping, dining, and cultural sites.
- Cameron Highlands (+27%) – a cool retreat with tea plantations and hilltop views.
According to Tourism Malaysia, Indian tourist arrivals exceeded 350,000 in the first half of 2025, putting the country on track to surpass pre-pandemic visitor numbers.
Palau: A Pacific Paradise Now on India’s Radar
Palau, a lesser-known island country in the western Pacific, has seen a 49% increase in accommodation interest from Indian travellers following its visa-free announcement in 2024. Known for its unspoiled coral reefs, UNESCO-listed Rock Islands, and world-class diving, Palau is quickly becoming a top choice for Indian tourists seeking eco-luxury and adventure.
Although relatively remote, improved flight connectivity via Southeast Asian hubs like Manila and Taipei is helping Indian travellers access Palau with greater ease.
The Philippines: Strengthening Cultural and Tourism Ties with India
As of April 2025, the Philippines has officially waived visa requirements for Indian nationals visiting for up to 14 days, provided they meet return flight and financial documentation requirements. This move has paid off, with Agoda reporting a 26% growth in Indian travel interest.
Popular Philippine destinations among Indian travellers include:
- Manila (+43% bookings) – the cultural and commercial heart of the Philippines.
- Palawan (+30%) – known for its turquoise lagoons and island hopping tours.
- Cebu (+25%) – a historical and beach destination attracting honeymooners and families.
The Department of Tourism (DOT) Philippines has actively promoted the archipelago in Indian metro cities through B2B events and joint campaigns with airlines and OTA platforms.
Sri Lanka: A Scenic Island Reinvents Itself for Indian Visitors
Sri Lanka’s visa-free initiative for Indian citizens, implemented in early 2024, has also proven fruitful. While the overall rise in bookings was 9%, interest is shifting toward lesser-known destinations:
- Mirissa (+31%) – a rising star on the south coast with whale watching and beachfront resorts.
- Nuwara Eliya (+16%) – the ‘Little England’ hill station known for its colonial charm and tea estates.
Sri Lanka’s Tourism Development Authority reports that Indian tourists now account for over 20% of total arrivals in 2025, reinforcing India as its most important source market.
Agoda Empowers Indian Travellers with Seamless Global Access
With over 5 million global properties, 130,000 flight routes, and 300,000 experiences, Agoda is simplifying international travel for Indian tourists. Whether booking boutique resorts in Palawan or tea lodges in Nuwara Eliya, Indian travellers can now plan their visa-free journeys through one user-friendly app.
Agoda’s latest search trend analysis confirms that visa relaxation is directly influencing destination choices among Indian outbound tourists. The platform also integrates special offers and travel bundles to make luxury and long-haul travel more affordable.
What Indian Travellers Should Know Before Heading Out
While these destinations offer visa-free access, Indian tourists are still advised to:
- Ensure passport validity of at least 6 months.
- Book return tickets and maintain proof of funds, where applicable.
- Check entry requirements related to vaccination or health declarations, especially for Palau and Sri Lanka.
- Purchase travel insurance for peace of mind in case of emergencies abroad.
The Ministry of External Affairs (India) encourages citizens to register with the MADAD portal when traveling internationally, especially to remote destinations like Palau.
Southeast Asia Strengthens Its Position as India’s Favourite Region
As air connectivity improves and policies become more traveller-friendly, Southeast Asia is proving to be the most accessible and affordable international getaway for Indian tourists. In 2025 and beyond, visa-free destinations like Malaysia, the Philippines, Sri Lanka, and Palau are expected to remain dominant in outbound travel trends from India.
From tropical escapes and cultural explorations to nature-filled adventures, the region’s diversity and affordability—coupled with easier entry requirements—make it a compelling choice for India’s growing middle-class travelers.
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