01-09-2016, 12:23 PM
1452096629-TourisminIndia.pdf (Size: 268.44 KB / Downloads: 8)
Background
Tourism has been a major social phenomenon of societies all over the world. It is driven by
the natural urge of every human being for new experiences, and the desire to be both
educated and entertained. The motivations for tourism also include religious and business
interests; the spread of education has fostered a desire to know more about different parts of
the globe. The basic human thirst for new experience and knowledge has become stronger,
as communication barriers are getting overcome by technological advances. Expenditure on
tourism induces a chain of transactions requiring supply of goods and services from the
related sectors. The consumption demand, emanating from tourist expenditure also induces
more employment and generates a multiplier effect on the economy.
Tourism in India broadly classified in North Indian Tourism, East Indian Tourism, West
Indian Tourism, and South Indian Tourism. Each part of India offers identifiable differences
from the rest of the nation. Tourism in India has come into its own as a brand – India
Tourism. The creation of niche tourism products like heliport tourism, medical tourism,
wellness tourism, adventure tourism, cruise tourism, and caravan tourism has served to
widen the net of this sector. Inbound tourism is booming and the country is going all out to
lure more travelers from around the world. Contrary to perceptions across the world that
tourism in India is still confined to traditions, the country is opening up with trendy tour
packages and affordable air travel deals to woo inbound visitors from every segment.
Present Scenario of Tourism in India
Travel and tourism is the largest service industry in India. This industry provides heritage,
cultural, medical, business and sports tourism. It is expected that the tourism sector’s
contribution to the country’s gross domestic product (GDP) will grow at the rate of 7.8 per
cent yearly in the period 2013–2023. The Indian tourism sector has been flourishing in
recent years due to the improved connectivity to and from the country. Also, a better
lodging facility at the tourist destinations has been a factor which has contributed to increase
Foreign Tourist Arrivals (FTA).
The policies and changes implemented by the Government of India has also been
instrumental in providing the necessary boost to the Indian tourism and hospitality industry
and attracting more and more foreign tourists every year.
India's travel and tourism industry is set to grow by about 7.3% in 2014, better than last year,
but average spending by foreigners travelling to the country could decline sharply, according
to the World Travel & Tourism Council. This year, revenue from domestic tourism is
Private & Confidential
Page 2 of 11
A brief report on Tourism in India
expected to grow 8.2% compared with 5.1% a year ago, that increasing domestic travel,
growth of low-cost airlines and upgrading of airport infrastructure will be the growth drivers.
However, the growth in the amount international visitors spend in the country could slow to
2.9% from 6.2% in 2013. "The picture in India in general terms is good. But in terms of the
global forecast, it is much lower than other countries, like China, which grew at 9.2% in 2013
(and is anticipated to grow at 8.3% in 2014), in 2013, India generated Rs 1,100 billion from
foreign visitors. The figure is likely to grow by 2.9% in 2014. International tourist arrivals are
expected to touch 7.36 million in 2014 and 13.43 million by 2024. Expenditure by foreign
tourists in India is expected to grow 4.3% every year to Rs 1,740 billion in 2024.
In 2013, the travel and tourism industry contributed Rs 2,170 billion or 2% to the country's
GDP. This is expected to rise to Rs 4,350 billion in 2024. WTTC, which includes executives
of travel companies as members, had said earlier that if five G20 countries (India, China, the
US, the UK and Brazil) were to go electronic in their visas, the move could generate five
million jobs and $268 billion income.
Drivers behind increase in Tourist Traffic
The main driver for increase in tourist traffic to India has been the following factors:
Domestic Tourist Traffic
Rapidly increasing purchasing power of the middle class
Better road connectivity
Evolving lifestyle
International Tourist Traffic
Value for money/economical holiday destination
Business cum pleasure destination
Development of Kerala and Rajasthan as the most popular tourist destinations in India with
their distinctive brand image
Opening of the sectors of the economy to private sector/foreign investment
Reform in the aviation sector such as Open Skies Policy has led to better connectivity with
many countries with India
Success of “Incredible India” campaign and other tourism promotion measures
1.3
Forms of Tourism in India
India offers various tourism options due to its vastness and diversity, attracting tourists from
all over the world. The country boasts of natural treasures like mountains, ocean, seas,