India is one of the fastest-growing travel and tourism markets in the world. Foreign tourist arrivals (FTAs) in India have increased as India continues to be a favoured tourist destination for leisure, as well as business travel. FTAs have increased at a CAGR of 8.1 per cent between 2004 and 2009. The demand for travel and tourism is expected to reach US$ 431.7 billion (INR 24,252.4 billion) by 2020. The demand for travel and tourism in India is expected to increase at a compound annual growth rate (CAGR) of 11.8 per cent between 2005 and 2010, to reach US$ 144.4 billion (INR 6,778.2 billion).
India’s well-equipped hospital infrastructure and the low cost of treatment, compared to developed countries, make it a preferred destination for medical tourism, which is expected to grow at 29 per cent to reach US$ 2.4 billion by 2012. The Ministry of Tourism is upgrading infrastructure facilities at important tourist destinations, which has improved accessibility to these places.
Furthermore, India has emerged as a popular tourist destination, and many smaller cities (Udaipur, Thiruvananthapuram and Kochi) are witnessing a greater influx of foreign tourists, resulting in an increased demand for hotels in these cities. Both domestic and international players have planned large-scale investments in the hospitality industry. Investment in travel and tourism in India is expected to reach US$ 34.7 billion in 2010 and US$ 109.3 billion by 2020.
Cumulative FDI inflows into the tourism and hospitality sector have been estimated at US$ 2,178.9 million between April 2000 and September 2010.
In addition, the Government of India (GoI) has introduced various initiatives and campaigns such as Incredible India!, Colors of India, Atithi Devo Bhavah and the Wellness Campaign to promote the Indian tourism and hospitality industry. Also, the increasing income and affordability have increased domestic leisure travel in the country.Sectoral Presentation (November 2010)
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