Commerce Dashboard
Tourism and Hospitality
In FY20, 39 million jobs were created in the tourism sector in India, which was 8.0% of the total employment in the country.

Indian Tourism and Hospitality Industry Analysis

    Last updated on Jan, 5 2021

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 recognized as a destination for spiritual tourism for domestic and international tourists. In his Independence speech from Red Fort, Prime Minister Mr. Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022 to promote tourism. India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum.

In WTTC’s Economic Impact 2019 report, India’s Travel & Tourism GDP contribution grew by 4.9%, which was the third highest after China and Philippines. Additionally, the report also highlights that between 2014-2019, India witnessed the strongest growth in the number of jobs created (6.36 million), followed by China (5.47 million) and the Philippines (2.53 million).

Total contribution by travel and tourism sector to India’s GDP is expected to increase from Rs. 15.24 lakh crore (US$ 234.03 billion) in 2017 to Rs. 32.05 lakh crore (US$ 492.21 billion) in 2028. Total earning from the sector in India is targeted to reach US$ 50 billion by 2022.

In FY20, 39 million jobs were created in the tourism sector in India; this accounted for 8.0% of the total employment in the country. International Tourists arrival is expected to reach 30.5 billion by 2028. e-Visa facility was offered to 169 countries as of December 2019.

During 2019, foreign tourist arrivals (FTAs) in India stood at 10.89 million, achieving a growth rate of 3.20% y-o-y. During 2019, FEEs from tourism increased 4.8% y-o-y to Rs. 1,94,881 crore (US$ 29.96 billion). In 2019, arrivals through e-Tourist Visa increased by 23.6% y-o-y to 2.9 million.

Under the Swadesh Darshan scheme, 77 projects have been sanctioned of worth Rs. 6,035.70 crore (US$ 863.60 million). In Union Budget 2020-21, the Government has allotted Rs. 1,200 crore (US$ 171.70 million) for the development of tourist circuits under Swadesh Darshan for Northeast.

The launch of several branding and marketing initiatives by the Government of India such as ‘Incredible India!’ and ‘Athiti Devo Bhava’ has 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 is working to achieve 1% share in world's international tourist arrivals by 2020 and 2% share by 2025.

Amid the relaxation provided by the government after the covid lockdown, the Indian Association of Tour Operators (IATO) has urged the government to finalise a roadmap for resumption of international flights and facilitate e-visas and tourist visas.

Subsequently in November end, India introduced a graded relaxation of its visa and travel restrictions for more categories of foreign nationals and Indian nationals.

Post the pandemic crisis, the government plans to tap into regional tourism by opening doors for South Asian country tourists.

The Government is also making serious efforts to boost investment in the tourism sector. In the hotel and tourism sector, 100% FDI (Foreign Direct Investment) 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 Government of India also announced to develop 17 iconic tourist sites in India into world-class destinations as per Union Budget 2019-20. Ministry of Tourism launched DekhoApnaDesh webinar in April 2020 to provide information on the many destinations and the sheer depth and expanse of the culture and heritage of Incredible India. Till August 17, 2020, 48 webinars were conducted under the series.

The Ministry of Tourism developed an initiative called SAATHI (System for Assessment, Awareness & Training for Hospitality Industry) by partnering with the Quality Council of India (QCI) in October 2020. The initiative will effectively implement guidelines/SOPs issued with reference to COVID-19 for safe operations of hotels, restaurants, B&Bs and other units.

Indian Tourism and Hospitality Industry Report (November, 2020)
Download PDF Download PDF  (Size: 895.59 KB )

Click to access the Tourism and Hospitality Industry Archived Report

Posters

Brand India Pharma

ANCIENT AND RICH

Approximately 8000 years old, India is the world's oldest surviving civilsation.

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

Agri Export Policy - Towards smoother trade, wider global presence

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

India's emerging social commerce poised for growth
IBEF, Knowledge Centre

Introduction
E-commerce transactions where buyers and sellers interact ...

India’s ‘Green City’ Campaign
IBEF, Knowledge Centre

Overview
India is poised to counter its environmental challenges with i...

Leather and Footwear Industry – Huge potential for growth
Shri P.R. Aqeel Ahmed, Chairman, CLE

The leather and footwear industry is a labour intensive sector, providing employment to 4.42 mi...

Indian automobile sector witnessing ground-breaking trends
IBEF, Knowledge Centre

Overview

The Indian automobile sector Is on its way to recovery after...

National Action Plan to Accelerate India’s Toy Sector
IBEF, Knowledge Centre

Overview

During the August 2020 Mann ki Baat address to the ...

Moving Towards a Knowledge Economy
Dr. Vidya Yeravdekar, Pro Chancellor, Symbiosis International University, Pune, India

Happy to kick start the year with IBEF's first blog on "Higher Education." This i...

ideas Ideas More

Ideas

Zomato: Top Of The Food Chain
Zomato, an Indian start-up is in the business of online food ordering. It initially launched Foodiebay.com in Gurugram in 2008, a website that scanned menus and provided ratings and recommendations on....

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password