Indian tourism industry holds potential to grow by 2.5%: Study
New Delhi: Indian travel and tourism industry has a potential to grow by 2.5 per cent on the back of higher budgetary allocation and low cost healthcare facility, says a report.
The industry has tremendous potential to rise by 2.5 per cent provided the budgetary allocation was enhanced from the current 0.09 per cent of the total allocation to at least 0.15 per cent in 2018-19, the joint study conducted by Assocham and Yes Bank said.
The study also proposed developmental interventions, including tourism infrastructure development and the emergence of tourism themes to upscale the industry.
The total contribution of travel & tourism to Indian GDP was USD 208.9 billion, 9.6 per cent of GDP in 2016, and is forecast to rise by 6.7 per cent in 2017 and 10.0 per cent of GDP in 2027, according to the World Trade and Tourism Council.
"The formation of National Tourism Authority (NTA) also needs to be taken up on priority and position it as an important authority," an Assocham spokesperson said.
He further said NTA could be the nodal agency for several activities like investment promotion, marketing, escalation resolutions, developmental planning and implementation coordination, among others.
Stating that India is fast developing into a medical and wellness tourism hub of Asia due of superior quality health services at a low treatment cost, the report said treatment of major surgeries in India costs approximately 20 per cent of that in developed countries.
"Creation of Medical hubs through PPP will boost medical tourism. Wellness tourism should be promoted by marketing indigenous methodologies such as Yoga and Ayurveda," it suggested.
Referring to Economist Intelligence Unit (EIU) estimates, the report said the number of foreign tourist arrivals is expected to rise up to 12 million by CY 2019, growing at a CAGR of 9.2 per cent.
The country witnessed 8 million foreign tourist arrivals in CY 2015, which has grown at a CAGR (compound annual growth rate) of 6 per cent during the period from CY 2007 to CY 2015, it added.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.