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.

Source: TH