India’s Tourism Market

In Context

  • Recently, The report’ titled ‘Outbound Travel and Tourism – An Opportunity Untapped‘ was released by Nangia Andersen LLP in association with FICCI.

More about the report & its highlights

  • About:
    • The report highlights the up-and-coming Indian travel market and 
    • It outlines a framework for creating a more value for money experience for Indian tourists and travellers.
  • Potential:
    • Indian outbound tourism is going to surpass USD 42 billion by 2024.
    • Europe sees 20 percent of the travellers from India’s outbound traffic. 
    • 10 percent travel to Australia and New Zealand, while the rest of the traffic is towards Southeast Asia.
  • For government:
    • To facilitate ease of doing business and promote the interests of Indian firms dealing in outbound travel the government could look at steps like: 
      • Increasing direct connections to popular and upcoming destinations, 
      • Allowing foreign cruise vessels to operate on Indian waters, 
      • Taking concerted and coordinated efforts on multiple fronts to propel the outbound tourism market, etc.
    • With the positive response of foreign delegations and their policies, our government can surely establish bilateral relations with tourist-friendly countries for both inbound and outbound tourists.
  • Foreign cruise vessels:
    • The report noted that allowing foreign cruise vessels to include Indian destinations as a stop would encourage both inbound and outbound tourism as well as increase revenue for Indian ports.
  • Significance:
    • India is soon going to be the most populous country in the world with the fastest growing economy
    • With a growing economy, young population, and growing middle class, India is ideally positioned to become one of the most lucrative outbound tourism markets in the world. 
    • The Indian outbound travel market is among the fastest growing markets globally with approximately 80 million passport levels of purchasing power, especially among the middle class.

Tourism sector in India

  • Role & importance:
    • The tourism sector contributes significantly to the Indian as well as the world economy.
    • Tourism is an integral pillar of the Make in India programme.
    • In India, the travel and tourism sector is one of the largest employers, employing nearly 12.75% (including both direct and indirect employment) of employment share in 2018-19.
    • Tourism tends to encourage the development of multiple-use infrastructure.
      • For Example, hotels, resorts & restaurants, transport infrastructure (aviation, roads, shipping & railways) and healthcare facilities.
  • Opportunities: 
    • India has over 200 beaches, 38 UNESCO World Heritage sites and 668 protected areas that can attract significant tourism activity.
    • India’s ranking in the 2021 Travel and Tourism Competitive Index (TTCI) is 54
      • TTCI is published by the World Economic Forum (WEF).
    • By 2028, Tourism & Hospitality is forecasted to earn $50.9 bn as visitor exports compared to $28.9 bn earned in 2018.
    • By 2029, Travel & Tourism will account for nearly 53 million jobs as compared to the 43 million jobs directly in 2018 (8.1% of total employment)
    • By 2030, India is expected to be among the top 5 business travel markets.
    • Further, the domains of medical tourism, eco-tourism, gem & jewellery market, religious tourism and other such niche areas may see a boom.
  • Concept of ‘Atithi Devo Bhava’ and multitude of tourism and religious destinations-
    • In India, we believe in the concept of ‘Atithi Devo Bhava’—a guest is treated as God.
    • The rich cultural heritage, cuisine, the friendly and welcoming attitude of most Indians towards foreigners help in attracting more visitors to India. 
  • Key areas:
    • India’s gems and jewellery and handicrafts: They are quite popular among tourists. 
    • Medical Tourism: India is emerging as the most preferred destination for Medical Tourism. 
    • The availability of world-class medical facilities with top class doctors, personalized nursing care, offering specialized treatments at a cost 1/4th that of developed countries.
    • Landscape: The country landscape possesses a gracious natural beauty, and can cater to almost every type of traveller whether they are seeking adventure, wellness, culture and heritage or cuisines.
    • Labour Force: The availability of a huge labour force both skilled and unskilled can act as a catalyst due to the service-based nature of the tourism industry.

Government initiatives to boost tourism sector in India:

  • Swadesh Darshan Scheme:
    • Launched by the Ministry of Tourism (MoT) 
    • Central Sector Scheme 
    • Aim: Integrated development of theme-based tourist circuits in the country in 2014-15.
  • National Mission on Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) Scheme:
    • Launched in 2015 
    • Focus on identifying and developing pilgrim sites across the country to promote religious tourism.
  • ‘Ek Bharat Shreshtha Bharat’:
    • Announced in  2015 on the occasion of the 140th birth anniversary of Sardar Patel. 
    • Aim: To enhance the bonding between the states and strengthen the unity and integrity of India.
    • It showcases the rich heritage, culture, customs and traditions of the paired states.
    • Through student exchange programs, it enables people to have a better understanding and appreciate the diversity of the nation.
  • Dekho Apna Desh initiative:
    • Organises webinars, quiz, pledge, discussions to keep people connected with the stakeholders and to encourage citizens to travel within the country.
  • Adopt Heritage Project:
    • Launched in 2017 as a collaborative effort by the Ministry of Tourism, Ministry of Culture and Archaeological Survey of India (ASI), State/UTs Governments.
    • It envisages the development and maintenance of tourist amenities at heritage sites and making them tourist-friendly.
  • Destination North East-2020
    • It is an annual event of the Ministry of Development of the North Eastern Region.
    • The event highlights various potentials like eco-tourism, culture, heritage and business of the North East Region.

Source: TH

 

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