Tourism Sector

In light of the 50% US tariffs imposed on Indian goods, experts like former NITI Aayog CEO Amitabh Kant have suggested leveraging India’s tourism sector to offset potential export losses. Tourism, being a service, is exempt from tariff barriers and can attract high-value foreign tourists, providing an alternative revenue and employment source.

Potential of India’s Tourism Sector

• Economic Contribution:
  India’s tourism sector has rebounded post-pandemic, contributing around 5% to GDP in FY23 and generating employment for approximately 7.6 crore people.

• Tourist Arrivals and Earnings:
  In 2024, India recorded 9.95 million foreign tourist arrivals (FTAs), still recovering toward pre-pandemic figures. Foreign exchange earnings (FEEs) rose by 10% to ?2.9 lakh crore, highlighting tourism’s role in economic revival and global presence.

• Global Standing:
  According to the World Travel and Tourism Council (WTTC) 2024-25, India is the 8th largest tourism economy worldwide, contributing USD 231.6 billion. It ranks 10th in the Medical Tourism Index (2020-21).

• Source Markets and Travel Purpose:
  Key source countries include the US, Bangladesh, UK, Australia, Canada, Malaysia, Sri Lanka, Germany, and France. Primary reasons for travel are leisure (46%), diaspora visits (27%), and business (10%).

• Future Projections:
  WTTC forecasts tourism to contribute nearly ?42 trillion to the economy by 2035, supporting 64 million jobs. By 2028, FTAs are expected to reach 30.5 million, generating over ?5.13 lakh crore. By 2047, India aspires to become a USD 3 trillion tourism economy with 100 million international tourists and 200 million related jobs.

Challenges Hindering Growth

• Visa and Travel Restrictions:
  Complex visa procedures and limited visa-free access restrict tourist inflows. Unlike China (70 countries) or Thailand (90 countries), India allows visa-free entry only for citizens of Bhutan, Nepal, and Maldives.

• Infrastructure Deficits:
  India has about 200,000 hotel rooms compared to China’s 20 million, with many government-run hotels operating at losses, deterring private investment. Transport and connectivity are weak, especially in remote areas.

• Cleanliness and Safety:
  Poor waste management and untidy public spaces near airports negatively impact visitor experience. Security and emergency services are inadequate, particularly in remote or high-traffic areas.

• Weak Global Promotion:
  Since the successful “Incredible India” campaign, India has lacked sustained international marketing. Despite 44 UNESCO World Heritage Sites, India attracts fewer tourists than countries with fewer sites, such as Greece, indicating underutilization of cultural assets.

• Urban and Connectivity Gaps:
  Limited access to remote but high-potential tourist spots, like Himalayan religious circuits, hampers growth.

Strategies to Attract High-Value Tourists

• Simplify Visa and Travel Procedures:
  Expand e-Tourist Visa and visa-on-arrival schemes to more countries, ensuring faster, cheaper, and seamless travel experiences with improved airport facilities and multilingual support.

• Promote Niche and Premium Tourism:
  Focus on Ayurveda retreats, luxury wildlife safaris, spiritual and wellness tourism, high-end cultural festivals, and river cruises. Lakshadweep, with its pristine environment, is a promising destination for sustainable luxury tourism.

• Leverage Influencers and Media:
  Invite travel writers and opinion leaders to showcase luxury experiences, building aspirational value and word-of-mouth promotion.

• Develop Thematic Circuits:
  Use schemes like Swadesh Darshan and PRASAD to offer immersive multi-day experiences such as Buddhist pilgrim circuits, luxury Himalayan adventure-wellness combos, and spiritual tourism, encouraging longer stays and higher expenditure.

• World-Class Infrastructure:
  Challenge-mode partnerships to develop 50 priority tourist destinations with premium facilities, luxury accommodations, and improved connectivity. Classification under the Infrastructure Harmonized Master List (HML) to attract private high-end hospitality investments.

• Upgrade Service Quality:
  Emphasize training for hospitality staff (chefs, guides, service personnel) and promote global-standard hotels, boutique stays, luxury trains, and cruises.

• Medical and Wellness Tourism:
  The “Heal in India” initiative integrates modern medicine with traditional Ayurveda and Yoga, positioning India as a global healthcare destination. Medical Value Travel is projected to reach USD 13.42 billion by 2026.

• Cultural Knowledge Tourism:
  Initiatives like Gyan Bharatam digitize and preserve heritage manuscripts, catering to scholars and heritage enthusiasts.

• Enhance Safety and Comfort:
  24x7 tourist helplines, dedicated tourist police, welcome materials, and multilingual guides to improve visitor confidence.

Conclusion

Tourism presents a tariff-free opportunity for India to build economic resilience, create jobs, earn foreign exchange, and enhance its global image. Guided by the ethos of ‘Seva’ and ‘Atithi Devo Bhava,’ India aims to transform into a world-class tourism destination by 2047, fostering inclusive and sustainable growth