Tourism Expansion in India
Posted On: 03 OCT 2024 12:09 AM
Introduction
With its rich heritage, cultural diversity, and breathtaking destinations offering a wealth of possibilities, India’s tourism industry is emerging as a global favourite. As a key driver of economic growth, the tourism sector not only promotes development but also improves the quality of life by creating various job opportunities. The tourism sector is witnessing a remarkable recovery post pandemic, with domestic tourism leading the way, according to the World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR). In 2023, the sector contributed over INR 19.13TN to the GDP—10% above 2019 levels—and created nearly 43 million jobs, an 8% increase from 2019. Domestic visitor spending surged 15% ahead of 2019, reaching INR 14.64TN. With government initiatives like the @2047 vision targeting 100 million inbound tourists by 2047, WTTC projects the sector’s GDP contribution to hit INR 21.15TN in 2024 and potentially INR 43.25TN by 2034, supporting nearly 63 million jobs.
The Government of India promotes tourism as a vehicle for social inclusion, employment and economic progress. Committed efforts are being made to transform India into a desirable tourist destination, and the tourism sector is becoming a key driver to making India a developed country by 2047. Acknowledging the potential of this sector, the government has allocated ₹2,479 crore for the tourism sector for FY25.
Foreign Tourist Arrival in India
In 2023, India recorded 9.24 million foreign tourist arrivals (FTAs), a growth of 43.5% compared to 6.44 million in 2022. FTAs contributed Foreign Exchange Earnings (FEEs) of Rs 2.3 lakh crores (Provisional estimates), a growth of around 65% in the same period compared to Rs. 1.39 lakh crores in 2022.
FTAs during January-June 2024 were 47,78,374 (Provisional). FEEs during January-June 2024 (Provisional estimate) were Rs. 1.27 crores. To increase the number of FTAs, various steps have been taken, such as promoting adventure and niche tourism, making easy the availability of e-visas, and launching a 24X7 multilingual helpline for tourists. Also, on World Tourism Day 2024, ‘Paryatan Didi and Paryatan Mitra’ were launched to create a hospitable and memorable experience for tourists in India.
Rise in Domestic Tourism
Domestic tourism plays a crucial role in the overall growth of India’s tourism sector. The Government of India has taken various initiatives to promote domestic tourism, such as Dekho Apna Desh, PRASHAD, Vibrant Village Programme, SWADESH 2.0, and Regional Connectivity Scheme – Udaan.
These efforts focus on raising awareness about key tourist destinations and products within the country and facilitating growth in tourism-related activities. Due to these continuous efforts, India has shown a positive trajectory in domestic tourism. In 2023, 2509.63 million Domestic Tourist Visits (DTVs) were recorded (provisionally) compared to 1731.01 Million DTVs in 2022. Further, in 2022-23, 76.17 million direct and indirect jobs were created due to tourism in India, compared to 70.04 million direct and indirect jobs created in 2021-22.
Over the last few years, India has built extensive tourism infrastructure worth approximately $1 billion (Rs. 7,000 Crores) to improve the tourist experience. To make India a global travel destination, the country's tourism products are being promoted holistically within the country and overseas markets.
Conclusion
Tourism in India has grown remarkably over the past two decades, with government initiatives, infrastructure development, and global branding contributing to this success. To boost tourism in India, schemes like Swadesh Darshan 2.0, Vibrant Village Programme, PRASHAD (Pilgrimage Rejuvenation and Spiritual Augmentation Drive), and Paryatan Mitra have been started. At the same time, the government is taking key steps to develop adventure and sustainable tourism. Technological integration and diversification into niche markets will help the tourism industry increase its growth.
It is due to these efforts by the government that the Travel and Tourism Development Index 2024 (TTDI) ranked India at 39th among 119 countries in the latest 2024 report published by the World Economic Forum. India's score has improved in three areas prioritisation of travel & tourism, safety & security, and health & hygiene.
References
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Santosh Kumar/ Ritu Kataria/ Kamna Lakaria/ Rishita Aggarwal
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