The tourism sector in India is rapidly expanding, with India being ranked 39th in the World Economic Forum’s Travel and Tourism Development Index (TTDI) 2024, the recently released Economic Survey 2023-24 noted.
In the post-pandemic period, India’s travel and tourism sector has shown strong signs of revival with foreign tourist arrivals (FTAs), one of the laggards in this space, showing signs of growth, the survey added.
The industry recorded over 92 lakh foreign tourist arrivals in 2023, clocking a 43.5 percent year-on-year (YoY) increase.
Initiatives like ‘Swadesh Darshan” and infrastructure development at tourist destinations can increase domestic tourism, potentially impacting the sector by Rs 10,000-15,000 crore, pointed out Balasubramanian A, Senior VP at TeamLease Services. “This could lead to significant job creation in hotels, restaurants, transportation, and other tourism-related services.”
The government must create awareness about less-visited places for tourism purposes to reduce the excess burden of tourists at already popular places, said Rama Mahendru- Country General Manager- India, Intrepid Travel.
He added that inbound international travel has grown in the last decade in India and has huge potential. “It will get a further boost with the support of the upcoming budget that prioritises the necessities, such as hygienic public spaces and increased security awareness, to guarantee that foreign guests have a great time.”
Balasubramanian noted that simplified visa processes and targeted marketing campaigns can attract more foreign tourists, potentially doubling tourist arrivals within five years.
The travel industry is hoping for infrastructure status, rationalisation in Goods and Services Tax, modifications to Leave Travel Allowance (LTA), and incentives to boost local destinations from Budget 2025.
The World Travel & Tourism Council (WTTC) 2024 projects that travel and tourism will contribute almost Rs 21.15 trillion to the India’s GDP in 2024, 21 percent above 2019 levels. With jobs predicted to increase by 2.45 million this year, this represents one in every 11 jobs in the country.
To transform India into a destination of choice, Madhavan Menon, Executive Chairman, Thomas Cook (India) Limited (Thomas Cook, SOTC, Sterling Holidays and TCI) said, Leave Travel Allowance (LTA) exemption annually, against twice in four years will catalyse domestic tourism.
The interim budget of February 2024 had already set a positive roadmap, with substantial increases in budgetary allocations for the tourism ministry, highlighting a clear focus on enhancing tourism infrastructure. This approach aims to boost domestic tourism and create new job opportunities, said Nishant Pitti, CEO and Co-Founder, EaseMyTrip.
Shikhar Aggarwal, Joint Managing Director of BLS International Services Limited said that the past few years have underscored travel and hospitality sector’s resilience and adaptability. “We are optimistic about the sector’s potential. We firmly believe that strategic government support is crucial to fully harnessing this potential,” he said.
Source: Money Control