Trade Analytics
Tourism and Hospitality
The World Travel and Tourism Council forecasts Indian tourism sector to grow at annual average growth rate of 7 per cent over the next ten years.

Indian Tourism and Hospitality Industry Analysis

Latest update: February, 2017

Rising contribution to India's GDP

  • Tourism in India accounts for 7.5 per cent of the GDP and is the third largest foreign exchange earner for the country
  • The tourism and hospitality sector’s direct contribution to GDP in 2016, is estimated to be US$47 billion
  • The direct contribution of travel and tourism to GDP is expected to grow at 7.2 per cent per annum, during 2015 – 25, with the contribution expected to reach US$160.2 billion by 2026
Growth

Rising contribution to India's GDP

  • The sector’s total contribution to GDP is expected to increase to US$ 136.2 billion by the end of 2016 and is expected to further grow to US$ 280.5 billion by 2026
  • The total contribution of travel and tourism to Indian GDP is forecasted to increase by 4.97 per cent per annum to US$ 280.5 billion by 2025 (7.2 per cent of GDP)
Growth

 

Last Updated: February, 2017

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MICE, eco-tourism, film, rural and religious tourism. India has been recognised as a destination for spiritual tourism for domestic and international tourists.

Total contribution by travel and tourism sector to India’s GDP is expected to increase from US$ 136.3 billion in 2015 to US$ 275.2 billion in 2025. Travel and tourism is the third largest foreign exchange earner for India. A sum of US$ 1.76 billion was earned under foreign exchange through tourism during the month of September 2016.

The launch of several branding and marketing initiatives by the Government of India such as Incredible India! and Athiti Devo Bhava have provided a focused impetus to growth. The Indian government has also released a fresh category of visa - the medical visa or M visa, to encourage medical tourism in the country.

The Government has also been making serious efforts to boost investments in tourism sector. In the hotel and tourism sector, 100 per cent FDI is allowed through the automatic route. A five-year tax holiday has been offered for 2, 3 and 4 star category hotels located around UNESCO World Heritage sites (except Delhi and Mumbai). The investment in tourism sector is expected to be US$ 12.4 billion in the 12th Five Year Plan; of these, private investments are likely to total US$ 9.2 billion.

Sectoral Presentation (February, 2017)

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