The Indian tourism sector has been experiencing a resilient phase of growth, driven by the flourishing middle class, increased spending by the foreign tourists, and synchronized administration and promotions by the Government of India to encourage ‘Incredible India’. The tourism industry in India is extensive and lively, and the nation is fast becoming a major international destination. India’s travel and tourism industry is one of them most lucrative businesses in the country, and also accredited with contributing a considerable volume of foreign exchange to the country reserves.
A number of reasons are cited as being the cause of the progress and success of India’s travel and tourism sector. Economic growth has added millions annually to the ranks of India’s middle class, a group that is driving domestic tourism growth. Thanks in part to its booming IT and outsourcing industry a growing number of business trips are made by foreigners to India, who will often add a weekend break or longer holiday to their trip. Foreign tourists spend more in India than almost any other country worldwide.
The tourism and hospitality industry being the largest service sector in the country, adds around 6.23 per cent to the national GDP and 8.78 per cent of the total employment in the country.
Recently, the Ministry of Tourism also compiled a monthly estimate on the foreign tourist arrivals (FTAs) and foreign exchange earnings (FEE) based on the total number of foreign visitors in the country.
In a report by the Ministry of External Affairs, the Indian hospitality sector is expecting a projected investment of US$ 12 billion within the next two years along with a number of industry initiatives already in progress. As per the report by the Ministry of Tourism, the Foreign Exchange Earnings (FEE) is as follows -