india tourism contribution to gdp 2022

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Tourism & Hospitality

India ranks 6th according to wttc in terms of travel & tourism total contribution to gdp in 2022  .

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Tourism and Hospitality, as one of India's largest service industries, plays an extraordinary role in driving the nation's growth and prosperity. 

The Tourism and Hospitality sector is an integral part of the Make in India initiative, serving as a vital economic catalyst that fuels job creation and rapid development. 

It acts as a stimulant for the growth of multi-use infrastructure, including world-class hotels, resorts, exquisite restaurants, efficient transportation networks (aviation, roads, shipping, and railways), and state-of-the-art healthcare facilities. 

India proudly boasts a tapestry of geographical diversity, encompassing awe-inspiring world heritage sites and niche tourism offerings such as captivating cruise tourism, exhilarating adventure tourism, renowned medical tourism, and mesmerizing eco-tourism. These unique offerings have resulted in an exponential increase in tourist arrivals, opening up vast employment opportunities. 

The recently announced 2023 Union Budget has firmly placed tourism as a key sector in the spotlight. The Ministry of Tourism, in its mission mode, is dedicated to promoting the industry through active participation from all States, the convergence of Government Programs, and the establishment of impactful Public-Private Partnerships. This visionary approach will facilitate comprehensive development in at least 50 selected destinations through a challenge mode process. 

Recognizing the importance of diversity and gender empowerment, the tourism industry stands as a leading employer of women. The government proactively collaborates with industry stakeholders to create a conducive work environment that fosters equal opportunities and celebrates the contributions of female employees. 

The Ministry of Tourism has also designated the Year 2023 as the 'Visit India' year, an invitation to the world to witness the splendor and magnificence that our nation has to offer. 

Embracing a progressive outlook, India welcomes 100% Foreign Direct Investment (FDI) in the tourism industry under the automatic route.  

Additionally, 100% FDI is permitted for tourism construction projects, including the development of exquisite hotels, resorts, and unparalleled recreational facilities. 

For comprehensive details, please refer to the FDI Policy, which highlights the investment opportunities and guidelines in the tourism sector. 

India's tourism industry stands as a beacon of boundless possibilities, with its rich heritage, cultural tapestry, and captivating destinations. We invite you to embark on an extraordinary journey of investment and partnership, where your vision aligns with the immense potential India holds

Foreign Tourist Arrivals (Jan-Dec 2023)

Domestic Tourist Visits to all States/UTs (2022)

Annual Growth Rate of FTAs in India (2022)

Foreign exchange earnings (FEE) from tourism (Jan-Dec 2023)

Share of India in International Tourism Receipts (ITRs) in World

6th in terms of Travel & Tourism total contribution to GDP, WTTC (2021)

2nd in terms of Travel & Tourism Employment, WTTC (2021)

54 th  on the World Economic Forum Travel & Tourism Development Index (2022)

• FOREIGN INVESTMENT
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Government of India envisions $56 Bn forex, creating around 140 Mn jobs in tourism by 2030 through inclusive growth and  particularly focusing on cruise tourism, ecotourism and adventure tourism.   

The Indian Tourism sector ranks among the fastest-growing economic sectors in the country. The industry significantly impacts employment and drives regional development, while also creating a multiplier effect on the performance of related industries.

By 2028, India's tourism and hospitality industry is projected to generate revenue of over $59 Bn. Additionally, Foreign Tourist Arrivals (FTAs) are anticipated to reach 30.5 Mn by 2028.

In light of India's G20 Presidency and the India@75 Azadi ka Amrit Mahotsav celebrations, the Ministry of Tourism has designated 2023 as the 'Visit India Year' to promote inbound travel.

The Honorable Prime Minister has envisioned a mission mode approach to develop tourism during Amrit Kaal, with a strategic roadmap for the next 25 years. The objective is to position India as the foremost travel destination globally by the time we celebrate India@100 in 2047, creating unparalleled appeal for visitors from around the world. 

Ministry of Tourism is planning to organize a Global Tourism Investors Summit along with Central Ministries and State/UT Governments to showcase opportunities for investment and trade. The event will allow global investors to explore Indian Tourism products and services.

Union Budget 2023 Highlights:

• 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism
• Sector-specific skilling and entrepreneurship development to be dovetailed to achieve the objectives of the ‘Dekho Apna Desh’ initiative
• Tourism infrastructure and amenities to be facilitated in border villages through the Vibrant Villages Programme
• Unity Malls to be set up in State Capitals or prominent tourist centres

GROWTH DRIVERS

Infrastructure development.

More than half of the Ministry of Tourism’s budget is channelised for funding the development of destinations, circuits, mega projects as well as rural tourism infrastructure projects.

Hotels & Accommodation

Revenue is projected at $7.66 Bn in 2023. CAGR of 8.29% between 2023-27. 61.3 Mn potential customers by 2027

Adventure Tourism

India has 70% of the Himalayas, a 7,000+ Km of coastline, ranks 10th in total area under forest cover, and is one of the three countries in the world with both hot and cold deserts.

Medical tourism

Medical tourism and wellness retreats attract 21% of international travelers, leveraging world-class healthcare facilities and traditional healing practices.

Cruise Tourism

Cruise passenger traffic expected to increase from 0.4 Mn to 4 Mn by 2032. Increase in economic potential from $110 Mn to $5.5 Bn.

Eco-Tourism

Expected to grow at 15.7% between 2019-27 & reach $4.55 Bn. India offers unique destinations, exploration of wildlife, and pristine undisturbed natural areas.

Meetings, Incentives, Conferences, and Exhibitions

The Indian MICE market has less than 1% share currently, but with initiatives such as ‘Meet in India’, National Advisory Council for Mice, India Mice Board, MICE Tourism is projected to double in next 5 years.

Entrepreneurial Opportunities

The tourism sector has 1,300+ DPIIT recognized startups.

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Gis - based map displaying available infrastructure for setting up business operations in the state., investment opportunities in tourism & hospitality.

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Frequently Asked Questions

The Ministry of Tourism is set to host the First Global Tourism Investors Summit in 2023 in collaboration with Central Ministries and State/UT Governments. 

This mega event aims to highlight investment and trade opportunities while providing a platform for international investors to discover India's diverse tourism products and services.  

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Recognising the potential of rural tourism in the country, the Ministry of Tourism has identified Rural Circuit as one of the fifteen thematic circuits for development under the Swadesh Darshan Scheme and is aimed at leveraging tourism as a force multiple for revitalizing the rural economy and for giving both domestic and international tourists a glimpse of rural aspect of the country.

Further, Ministry of Tourism has formulated a Draft 'National Strategy and Roadmap for Development of Rural Tourism in India - An initiative towards Atmanirbhar Bharat', which, inter alia, focuses on generating income and jobs in rural areas and empower local communities, youth and women, fulfilling the vision of Aatmanirbhar Bharat.

The GOI has identified 78 lighthouses in the country as centres of tourism, which are in the first phase under Public Private Partnership (PPP). The identified lighthouses are in Gujarat, Maharashtra, Goa, Karnataka, Kerala, Lakshadweep, Tamil Nadu, Puducherry, Andhra Pradesh, Odisha, West Bengal and Andaman and Nicobar Islands. The GOI has kick started the ‘lighthouse tourism’ project by inviting initial qualification bids to develop eight lighthouses in the first phase, at a cost of INR 128 crore, under the public-private-partnership model for 7 lighthouses.

The goal of the revamped Swadesh Darshan 2.0 Scheme is to develop sustainable and responsible tourism destinations in the country. The scheme is aimed at 360-degree holistic development with a focus on increasing self-employment, youth skilling, private sector investments, and preserving local cultures.

The strategic objectives of the Scheme are: (i) To enhance the contribution of tourism to the local economies (ii) To create jobs including self-employment for local communities (iii) To enhance the skills of local youth in tourism and hospitality (iv) To increase private sector investment in tourism and hospitality (v) To preserve and enhance the local cultural and natural resources  

Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) scheme focuses on developing and identifying pilgrimage sites across India for enriching the religious tourism experience. It aims to integrate pilgrimage destinations in a prioritised, planned and sustainable manner to provide a complete religious tourism experience. As on date, total number of destinations/sites identified for development under the scheme at present are 68 in 30 states/UTs.

Market Research

Annual report 2022-23 | ministry of tourism, india tourism statistics at a glance 2022, union budget 2023-24: analysis report, economic survey 2022-23, global innovation index 2022, government ministry/department.

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• How travel will emerge as a key contributor to India’s GDP

The Dharamshala Declaration 2022 highlights the significance of the travel industry in augmenting India’s GDP while promoting greater employment and allied benefits. Thanks to the Central Government’s enabling policy environment, the travel and tourism industry is expected to contribute $250 billion to the GDP by 2030, along with 137 million jobs, $56 billion in forex earnings and 25 million foreign tourist arrivals.

• ETTravelWorld
• Updated On Nov 28, 2022 at 11:18 AM IST

MoT to hold CEO roundtable on sustainable tourism in association with RTSOI & UNEP on Nov 25

The key objectives of the round table is to enhance awareness of industry stakeholders on national and global priorities for sustainable tourism and share and promote best practices on sustainable tourism. It will seek participation from CEOs, senior-mid level representatives from the key industry groups, Ministry of Tourism, UN in India, UNEP, Responsible Tourism Society of India and experts working on Sustainable Tourism.

• Published On Nov 28, 2022 at 09:30 AM IST

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India’s Travel & Tourism Could Surpass Pre-pandemic Levels by the End of 2022

Travel & Tourism’s GDP expected to outpace India’s economy over the next 10 years

More than 2.4 million jobs could be created every year

London, UK: Research conducted by the World Travel & Tourism Council ( WTTC ) has revealed the Travel & Tourism sector’s contribution to the Indian economy could surpass pre-pandemic levels this year, with a year-on-year growth of 20.7%.

The forecast from the WTTC’s latest Economic Impact Report (EIR), shows the sector’s contribution to the nation’s economy could reach almost ₹15.9 trillion (U.S. $215 billion) in 2022, 1% above 2019 levels.

Employment levels are set to grow to almost 35 million Travel & Tourism jobs, with an 8.3% growth this year.

Over the next decade, India’s Travel & Tourism’s GDP is expected to grow at an average of 7.8% annually, compared to 6.7% of the India’s overall economy, to reach almost ₹33.8 trillion (U.S. $457 billion) – representing 7.2% of the total economy.

The forecast also reveals the sector is expected to create over 24 million jobs over the next decade, averaging more than 2.4 million new jobs every year.

Julia Simpson, WTTC President & CEO, said: “After the pain suffered by India’s Travel & Tourism sector, the future looks bright with Travel & Tourism to and from India set to exceed 2019 levels.

“The outlook for the next decade is looking very positive with India accounting for one in five of all new Travel & Tourism jobs globally.”

Before the pandemic, India’s Travel & Tourism sector’s contribution to GDP was 7% (₹15.7 trillion, U.S. $212 billion) in 2019, falling to just 4.3% (₹9.2 trillion, U.S. $124 billion) in 2020, which represented a shocking 41.7% loss.

The sector also supported more than 40 million jobs in 2019, falling to just over 29 million in 2020, when the pandemic devastated the sector.

Following the significant decline in 2020, the global tourism body’s latest EIR report reveals that 2021 saw the beginning of the recovery for the country’s Travel & Tourism sector.

Last year, its contribution to GDP climbed 43.6% year on year, to reach ₹13.2 trillion (U.S $178 billion).

While the sector also saw a recovery of just under three million Travel & Tourism jobs, representing a positive rise of 10.2% to more than 32 million, this is still eight million fewer jobs than in 2019.

The sector’s contribution to the economy and employment could have been higher if it were not for the impact of the Omicron variant, which led to the recovery faltering around the world, with many countries reinstating severe travel restrictions.

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China’s Travel & Tourism Sector Set to Recover by More Than 60% This Year, Reveals WTTC

Portugal’s Travel & Tourism Sector Faces Job Shortfall of 85,000 This Year, Says WTTC Report

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The travel and tourism sector is expected to contribute us$ 201.37 billion (rs. 16.5 trillion) to india's economy by 2023: world travel & tourism council.

• June 23, 2023

The value of the travel and tourism sector's contribution to the Indian economy in 2022 was US$ 190 billion (Rs. 15.7 trillion) and is expected to reach US$ 201.37 billion (Rs. 16.5 trillion), by the end of 2023, according to figures from the World Travel & Tourism Council (WTTC).

The projection is worth a staggering roughly US$ 451.56 billion (Rs. 37 trillion) over the following ten years. On its current course, India should be able to accomplish this, says President and Chief Executive Officer, World Travel & Tourism Council (WTTC), Ms. Julia Simpson. She further mentioned that in 2022, there were 37.2 million people employed in the travel and tourism sector in India. By the end of this year, it is expected that 39 million people will be employed in this sector. The WTTC expects travel and tourism to grow at double the rate of global gross domestic product (GDP).

Ms. Julia Simpson also quoted that the expected value of domestic tourist spending in India in 2022 was US$ 150.11 billion (Rs. 12.3 trillion), while the estimated value of overseas visitor spending was US$ 19.53 billion (Rs. 1.6 trillion). According to WTTC, this year's international spending could reach US$ 24.41 billion (Rs. 2 trillion), while domestic spending will likely total US$ 153.78 billion (Rs. 12.6 trillion). Domestic spending is projected to be US$ 350.26 billion (Rs. 28.7 trillion) over the next ten years, while international spending would total US$ 50.04 billion (Rs 4.1 trillion).

She also mentioned that the WTTC brings together 200 of the top global world travel and tourism Chief Executive Officers (CEOs) and the industry body operates in ‘every’ area of travel and tourism. Hotels, airports, airlines, cruise lines, and all significant wholesalers are included in this. We speak for the sector. The World Travel and Tourism Council (WTTC) has been quantifying the worth of travel and tourism for the past 30 years in terms of its economic contribution to both the global economy and the economies of 185 different countries.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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Ministry of Tourism to participate in World Travel Market 2022 from 7th to 9th November in London

The theme of this year`s exhibition is ‘the future of travel starts now’.

Ministry of Tourism, Government of India will participate in World Travel Market (WTM) 2022 from 7th to 9th November in London which is one of the largest international travel exhibitions. The theme of this year`s exhibition is ‘The Future of Travel Starts Now’. With the reopening of the country to foreign tourists, after a gap of almost 2 years, this year`s participation of India is particularly significant. After world’s largest vaccination drive, the country is ready for international tourists. India is participating in WTM 2022 to showcase itself as a preferred destination for tourism.

During 2019, the contribution of travel & tourism to India`s GDP was 5.19% of the total economy. In 2019, the Indian tourism sector accounted for 79.86 million jobs (direct and indirect employment). The consistent efforts of the Central and the State Governments has helped the tourism industry to gradually recover from the Covid-19 pandemic shock to the pre pandemic levels.

A total of 16 stakeholders, including from State Governments, other Central Ministries, Confederation of Indian Industry (CII) as the industry partner, DMCs, tour operators, hoteliers, travel agents, online travel agents, facilitators of medical value travel are participating as co-exhibitors in the India Pavilion. The objective is to showcase the diverse tourism products and services including Medical Value travel, luxury trains and the gamut of tourism products to the international business community. This year, the Indian delegation is being led by Shri Arvind Singh, Secretary (Tourism), Government of India includes Shri Rakesh Verma, Additional Secretary and other senior officials from the Ministry, besides representatives from the Indian travel and tourism stakeholders.

The Indian Government is cognizant of the country’s potential in the tourism industry and has taken several steps to make India a global tourism hub. During the visit to WTM 2022, the Indian delegation led by Sh. Arvind Singh, Secretary Tourism, Government of India will showcase the varied tourism offerings of India to the global tourism industry stakeholders such as tour operators, travel agents, media etc.. As India is poised for massive growth in the tourism sector in the future, this visit shall also offer opportunity to the Indian Government delegation to showcase the investment opportunities and potential which India offers to the global investors.

India is also gearing up for the G20 Presidency which is scheduled to start from 01st December, 2022. Under its Presidency, the country is expected to host over 200 meetings across 55 cities in the country. The G-20 Presidency will give India’s tourism sector an unparalleled opportunity to highlight India’s tourism offerings and share India’s tourism success stories on a global stage.

The Ministry of Tourism is aiming to develop the tourism sector especially in the aftermath of COVID Pandemic to new heights and accelerating the transition to achieve sustainable development targets of 2030.

Travel, Tourism & Hospitality

• Revenue share from tourism India 2013-2022, by visitor origin

Distribution of spending from tourism to GDP in India from 2013 to 2022, by visitor origin

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Statistics on " International tourism in India "

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