Tourism and Hospitality

Indian Tourism and Hospitality Industry Analysis

Latest update: September, 2018

  • In CY2017, foreign tourist arrival in India stood at 10.177 million and reached 2.12 million in CY 2018 (up to February).
  • Foreign tourist arrivals into the country is forecast to increase at a CAGR of 7.1 per cent during 2005–25
  • The number of Foreign Tourist Arrivals (FTAs) in February 2018 were 1.05 million as compared to FTAs of 956,000 in February 2018 and 849,000 lakh in February 2016.
  • The growth rate in FTAs in February 2018 over February 2017 was 10.1 per cent.
  • The Government of India has set a target of 20 million foreign tourist arrivals (FTAs) by 2020 and double the foreign exchange earnings as well.
  • The Government of India is working to achieve 1 per cent share in world's international tourist arrivals by 2020 and 2 per cent share by 2025.
Growth

Notes: CY – Calendar Year, E- Estimated, *up to February 2018
Source: World Travel & Tourism Council’s Economic Impact 2017, Ministry of Tourism 12.

  • The sector’s total contribution to GDP stood at US$ 208.9 billion (9.6 per cent of GDP) in 2016 and is forecast to rise by 6.7 per cent in 2017, and to rise by 6.7 per cent pa to Rs 28,491.8 billion (US$ 424.5 billion), 10 per cent of GDP in 2027.
  • In February 2018, the country earned foreign exchange of around US$ 2.706 billion, from the tourism sector.
Growth

Notes: The definition of direct, indirect and induced contribution is specified in the glossary, E- Estimated, F - Forecast
Source: World Travel & Tourism Council’s Economic Impact 2017, News Article

 

Last Updated: September, 2018

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.

Total contribution by travel and tourism sector to India’s GDP is expected to increase from Rs 15.24 trillion (US$ 234.03 billion) in 2017 to Rs 32.05 trillion (US$ 492.21 billion) in 2028. India was ranked 7th among 184 countries in terms of travel & tourism’s total contribution to GDP in 2017. Travel and tourism is the third largest foreign exchange earner for India. During January-July 2018, FEEs from tourism increased 12.1 per cent year-on-year to US$ 17.09 billion. Foreign Tourist Arrivals (FTAs) increased 7.3 per cent year-on-year to 5.97 million in the same period. Foreign tourist arrivals for medical purpose increased from 427,014 in 2016 to 495,056 in 2017(P).

Total employment in the sector is expected to rise to 52.3 million jobs by 2028. The Government of India has set a target of 20 million foreign tourist arrivals (FTAs) by 2020 and double the foreign exchange earnings as well.

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. Incredible India 2.0 campaign was launched in September 2017. The Government of India is working to achieve one per cent share in world's international tourist arrivals by 2020 and two per cent share by 2025.

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). Total FDI received by Indian hotel & tourism sector was US$ 11.39 billion between April 2000 and June 2018. 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.

Indian Tourism and Hospitality Industry Report (September, 2018)

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Indian Tourism and Hospitality Industry Report (June, 2018)

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