Domestic tourist visits stood at over 143 crore in 2015, according to the report 'Domestic Tourism: Tap the treasure' by industry body Assocham.
"Given the growth of India's economy, expansion of middle classes and ongoing westernisation of their lifestyles, the relative importance of domestic tourism can only be expected to increase exponentially over the coming decades," Assocham Secretary General D S Rawat said.
However, it is imperative for governments both at the state and central levels to give more priority and a more integral, central role to domestic tourism in the overall tourism development across India, he added.
In addition, domestic tourism compensates for seasonal variations in overseas tourism thereby sustaining tourism demand and employment, it added.
Tamil Nadu was the preferred choice of domestic tourists, with 33.3 crore travelers visiting the state in 2015, followed by Uttar Pradesh and Andhra Pradesh, the report said.
Steps such as creation of world-class infrastructure, effective marketing, promoting tourism circuits and ensuring safety and security of tourists could provide a boost to the sector, it added.