Friday, 17 May, 2024
By: Yash Gupte
India has a lot of potential for tourism as it has large number of tourist places and UNESCO world heritage sites. Image Source: IANS
the contribution of India's travel and tourism sector to India's economy was worth Rs 15.7 trillion in 2022. By the end of this year, it would be worth Rs 16.5 trillion.
According to the latest data released by the World Travel and Tourism Council (WTTC), the contribution of India's travel and tourism sector to India's economy was worth Rs 15.7 trillion in 2022. By the end of this year, it would be worth Rs 16.5 trillion. Julia Simpson, president and CEO of WTTC said, “The forecast for the next ten years is worth an enormous almost Rs 37 trillion. This is what we expect India on its current trajectory to achieve.”
In India, the travel and tourism industry employed 37.2 million people in 2022. We anticipate that 39 million individuals will work in this industry by the end of the year," she said. She stated that WTTC anticipates travel and tourism to expand at a rate that is twice as fast as the global GDP. In India also, it is going to grow at double the rate of the Indian GDP," she added. The anticipated value of domestic tourist spending in India in 2022 was Rs 12.3 trillion, while the estimated value of overseas visitor spending was Rs 1.6 trillion. According to WTTC, this year's international spending could reach Rs 2 trillion, while domestic spending will likely total Rs 12.6 trillion.
Domestic spending is projected to be Rs 28.7 trillion over the next ten years, while international spending would total Rs 4.1 trillion. According to Simpson, the WTTC brings together 200 of the top CEOs in the travel and tourism industries from across the world and the organisation works in "every" sector of the industry. She added, “This includes hotels, airports, airlines and cruises, and all the major distributors. We represent the voice of our sector. For 30 years now, the WTTC has been measuring the value of travel and tourism in terms of its economic contribution to the global economy but also to the economy of 185 individual countries.”
Source: Ministry of Tourism
India has a lot of potential for tourism as it has large number of tourist places and UNESCO world heritage sites. The above chart shows that India’s tourism industry has been severely hit by the covid-19 pandemic as there has been a significant decline in the foreign exchange earnings through tourism after 2020. India is one of the top nations in terms of international tourist expenditure because of its diversified geography and array of cultures, each of which offers its own unique experiences. With a combined contribution to the GDP of India's economy of over US$ 178 billion, travel and tourism are two of the country's greatest sectors.
Budget 2023–2024 allots US$ 2.1 billion to the Ministry of Tourism since the industry offers a lot of opportunity for young people to start their own businesses and find employment. The Swadesh Darshan Scheme has been given a budgetary investment of $170.85 million under the Union Budget for 2023–24. As of March 31, 2022, 68 locations have been chosen in 30 States and UTs for development under the PRASHAD Scheme.
From an expected US$ 75 billion in FY20, the Indian travel market is predicted to grow to US$ 125 billion by FY27. Due to improved airport facilities and increased access to passports, the estimated $20 billion Indian airline travel market is expected to quadruple in size by FY27. International visitors are anticipated to total 30.5 billion by 2028, bringing in more than $59 billion in revenue. Post-pandemic, growth is anticipated to be driven by domestic travellers.
During the pre-pandemic year 2019, there were 10.93 million foreign tourists arriving in India (FTAs). After the COVID-19 outbreak, the tourism industry has showed promising indications of recovery. The Bureau of Immigration has reported that 6.19 million foreign tourists arrived in India during 2022, compared to 1.52 million during the same period in 2021.
Under its Swadesh Darshan, PRASHAD, and Assistance to Central Agencies Schemes, the Ministry of Tourism, Government of India, provides central financial assistance to State Governments, Union Territories, and Central Agencies for the development of tourism-related infrastructure and facilities in the nation in order to provide tourists with an enriching tourism experience in a planned and phased manner.
Source: Ministry of Tourism
The Ministry of Tourism has taken several initiatives to give boost to the tourism sector in the country and to increase foreign tourist arrivals. Some of the steps taken by the ministry are- i) Launching of Dekho Apna Desh initiative with the objective of creating awareness among the citizens about the rich heritage and culture of the country and encourage citizens to travel within the country; ii) 24x7 toll free Multi-Lingual Tourist Helpline; iii) Providing facility of e-Visa for 5 sub-categories i.e. e-Tourist visa, e-Business visa, e-Medical visa, e-Medical Attendant visa and e-Conference visa for nationals of 166 countries; iv) E-Visa has been further liberalized and the visa fee has been substantially reduced and v) Lowering of GST on hotels rooms with tariffs of ₹1,001 to ₹7,500/night to 12 percent; those above ₹7,501 to 18 percent to increase India’s competitiveness as a tourism destination.
Also, the G20 has provided a boost to the tourism sector in India. G20 meetings are being held at 55 destinations throughout the country. The infrastructure at these cities are being augmented and upgraded for the G20 meetings. Tourism offerings are being highlighted in run up to these meetings. Excursion of Delegates is also organised to nearby tourist attractions. Effort is being made to make G20 Delegates visiting these destinations are going back to their countries as tourism ambassadors. Important tourism sites and facilities are being upgraded to international standards.
