tourism importance in india

From India to the world: Unleashing the potential of India’s tourists

Boosted by rising economic prosperity and a fast-growing economy, India is set to be an important global source market for leisure travel. India is now the fifth-largest economy, and its population has surpassed China’s to become the largest in the world, at over 1.4 billion people. 1 World Bank national accounts data, GDP (current US$) India, accessed September 2023; World population prospects 2022 , United Nations Department of Economic and Social Affairs, Population Division, 2022. And the population is young—the median age is 27.6, more than ten years younger than that of most major economies. 2 World population prospects 2022 . What's more, consumption of goods and services, including leisure and recreation, is forecast to double by 2030. 3 “India’s impending economic boom,” Morgan Stanley, November 8, 2022. Adding a strong postpandemic travel recovery, and a growing appetite for international travel, these factors point to India’s significant potential for outbound tourism.

India is now the fifth-largest economy, and its population has surpassed China’s to become the largest in the world, at over 1.4 billion people.

Through nine charts, this article unpacks trends and opportunities in the Indian travel market. Selected country examples shed light on how destinations can enhance their value propositions to attract and delight Indian travelers.

Indian globetrotters set to soar

Racing ahead: indian wanderlust is taking off, top picks: united arab emirates reigns, new gems discovered, regional flavors; global explorers.

Indian travelers are not a homogenous group; destination preferences vary across regions. For example, travelers from North India constitute a large share of travel to the United States and Canada, while two-thirds of travelers from Kerala prefer destinations in the Middle East. 1 India tourism statistics 2020 , Ministry of Tourism, Government of India, January 2021; MarketIS. Purpose of travel, distribution of the diaspora, and cultural linkages play a role in destination choice.

Destination matchmaking: Five ways to build value

Destinations looking to harness the full potential of the growing Indian market could consider tailoring their value propositions in alignment with one or more of the five key decision points that influence where travelers choose to go. Destinations might ask the following questions to determine which factors align with what Indian travelers look for when planning a trip.

Research. How attractive and popular is the destination with Indian tourists?
Accessibility. Is it easy to obtain a travel visa?
Connectivity. Are there convenient flights that connect India to the destination?
Booking. Is the destination affordable for Indian travelers, and is there an adequate supply of hotels in the appropriate price range?
Travel experience. What is the on-the-ground experience like for Indian tourists in terms of weather, attractions, and whether or not the local population is English speaking?

There’s something for everyone in Thailand

Azerbaijan’s visa policy wows indian travelers, vietnam takes off: direct flights skyrocket arrivals.

In 2019, Kolkata was the only city in India with direct connectivity to Vietnam, and three other Indian cities offered sporadic flights. To stand out from Southeast Asia neighbors and gain popularity with Indian travelers, Vietnam improved direct connectivity from India by increasing flight frequency and adding new routes. Indian arrivals are now at an all-time high. 1 Data from Google trends and Diio Mi.

The luxury of Dubai is within reach

In 2022, India was the largest source market for leisure travelers to Dubai. 1 “1.24 million Indian tourists visit Dubai in first 9 months of 2022,” Business Standard , December 10, 2022. The city is known for its luxury offerings and, perhaps surprisingly, also offers a wide range of accommodations, such as 3-star options. And flights from India are affordable when compared with flights of similar distances. Taken together, these factors make the luxury of Dubai accessible to Indian travelers. 2 MarketIS.

Bollywood magic in Switzerland

While only 9 percent of Indian travelers focus on long-haul destinations in Western Europe, Switzerland has been an Indian top-20 destination for over a decade. Switzerland may be popular, as it feels familiar to Indian travelers: many Bollywood hits feature Swiss attractions, there are plenty of Indian restaurants and cultural festivals, and English is widely spoken. 1 “Switzerland and romantic songs of Indian movies,” Solo Backpacker, September 20, 2019; India-Switzerland relations , Ministry of External Affairs, Government of India, February, 2020; Festival of India in Switzerland and Liechtenstein – Events , Ministry of Culture, Government of India, 2018; Swiss hospitality for Indian guests , a joint report from HotellerieSuisse, Berne and Switzerland Tourism, November, 2019.

Namaste, India!

India is a high-potential, growing source market for leisure travel. Destinations looking to attract Indian leisure travelers could consider targeted marketing, an expanded range of affordable options, and customized on-the-ground hospitality that caters to Indian preferences. Destinations may need to take steps now to build a strong value proposition and distinguish themselves as a preferred location. To do so, they could take action in the following areas:

Destinations looking to attract Indian leisure travelers could consider targeted marketing, an expanded range of affordable options, and customized on-the-ground hospitality.

Connect. Make travel seamless, for instance, by simplifying visa application processes and providing direct connectivity.
Entice. Offer affordable packages with a range of choices that appeal to specific groups, such as families, couples, or solo travelers.
Welcome. Make the experience traveler-friendly, for example, by providing appropriate food and beverage options like vegetarian and Indian cuisine.
Attract . Design targeted campaigns to showcase experiences that Indian travelers want, and use appropriate channels to get the word out, for example leveraging over-the-air partnerships and social media.
Unlock. Include the MICE (meetings, incentives, conferences, and exhibitions) and business tourism segments in marketing efforts to boost interest in leisure travel.

Divya Aggarwal is an associate partner in McKinsey’s Gurugram office, Margaux Constantin is a partner in the Dubai office, and Kanika Kalra is a partner in the Mumbai office, where Neelesh Mundra is a senior partner.

The authors wish to thank Ashu Airan, Steffen Köpke, Richa Kothari, Karthik Krishnan, Kargil Mishra, and Jean Petersen for their contributions to this article.

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Tourism in India- Impacts and Insights

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Tourism in India is big business and it is growing year on year. But what is the appeal and how can tourism best be managed here? Read on to find out…

Overview of India

The tourism industry in India

Why people travel to India

10 interesting facts about India

10 FAQs about tourism in India

Tourism in India

Welcome to India! A land of diverse landscapes and cultures. From the snowy peaks of the Himalayas to the sunny beaches of Goa. Dive into a world where every corner has a story. Let’s embark on this adventure together!

Geography of India

India is a country located in South Asia and is the seventh-largest country in the world by land area. It has a diverse landscape and a wide range of climates, ranging from tropical in the south to alpine in the north.

India is bordered by the Indian Ocean to the south, the Bay of Bengal to the east, and the Arabian Sea to the west. It shares land borders with Pakistan to the west, China , Nepal, and Bhutan to the north, and Bangladesh and Myanmar to the east.

The northern region of India is dominated by the Himalayan mountain range, which includes the highest peak in the world, Mount Everest. The Himalayas also act as a natural barrier, separating India from the rest of Asia. The central region of India is made up of the Deccan Plateau, which is bordered by the Eastern and Western Ghats mountain ranges.

The Indo-Gangetic plain is a vast, fertile region that stretches across northern and eastern India and is watered by the Ganges, Brahmaputra, and Indus rivers . The western part of India is dominated by the Thar Desert, while the southern region is known for its tropical forests and coastal plains.

India has a rich diversity of flora and fauna, with a range of animal species including tigers, elephants, rhinoceroses, and various species of monkeys. The country is also home to a diverse range of ethnic and linguistic groups , with over 1,600 languages spoken throughout the country.

Tourism is a significant contributor to the Indian economy, with the sector accounting for 9.2% of the country’s GDP and generating over 40 million jobs in 2019. Here are some statistics related to the tourism industry in India:

Foreign tourist arrivals: In 2019, India received over 10.9 million foreign tourist arrivals, which was a 3.2% increase compared to the previous year.
Domestic tourism: Domestic tourism in India is also significant, with over 2.3 billion domestic tourist visits in 2019.
Tourism revenue: The total tourism revenue generated in India in 2019 was over USD 28 billion, with foreign exchange earnings from tourism standing at USD 19.9 billion.
Top tourist destinations: Some of the top tourist destinations in India include the Taj Mahal in Agra, the Golden Temple in Amritsar, the beaches of Goa, and the backwaters of Kerala.

India is a diverse country with a rich cultural heritage and natural beauty, which offers a wide range of tourism options. Here are some of the most popular types of tourism in India:

Heritage tourism in India

India has a rich history, and there are many historic sites and monuments, such as the Taj Mahal, Qutub Minar, and Ajanta and Ellora Caves, that attract tourists interested in learning about the country’s past.

Cultural tourism in India

India is home to a diverse range of cultures, traditions, and customs, and tourists come to India to experience its rich cultural heritage, such as its music, dance, and cuisine.

Adventure tourism in India

India offers a range of adventure tourism options, including trekking in the Himalayas, white-water rafting, wildlife safaris, and skiing.

Spiritual tourism in India

India is a land of spirituality, and many tourists come to India to explore its spiritual heritage, visit ashrams, and participate in yoga and meditation.

Medical tourism in India

India is a popular destination for medical tourism , with world-class healthcare facilities and affordable medical treatments attracting patients from around the world.

Eco-tourism in India

India has a diverse range of ecosystems, from tropical forests to deserts , and tourists come to India to explore its natural beauty and wildlife, such as the backwaters of Kerala, the Sunderbans, and the Jim Corbett National Park.

Beach tourism in India

India has a long coastline and many beautiful beaches, such as Goa, Kerala, and Andaman and Nicobar Islands, which attract tourists looking for sun, sand, and surf.

India has a rich cultural and historical heritage, and is home to many popular tourist attractions that draw visitors from around the world. Here are some of the most popular tourist attractions in India:

Taj Mahal – Located in Agra, the Taj Mahal is one of the most iconic and beautiful buildings in the world. It was built by the Mughal emperor Shah Jahan as a mausoleum for his wife Mumtaz Mahal.
Jaipur – The capital city of Rajasthan, also known as the “Pink City,” is famous for its stunning architecture, forts, and palaces, including the City Palace, Hawa Mahal, and Amber Fort.
Golden Temple – Located in Amritsar, the Golden Temple is the most sacred site of Sikhism and is renowned for its stunning architecture and the warm hospitality offered by the Sikh community.
Kerala Backwaters – The backwaters of Kerala are a network of interconnected canals, lagoons, and lakes that provide a scenic and relaxing experience for tourists.
Khajuraho Temples – The Khajuraho Temples are a group of Hindu and Jain temples located in Madhya Pradesh that are famous for their intricate carvings and sculptures.
Varanasi – Located on the banks of the River Ganges, Varanasi is one of the oldest continuously inhabited cities in the world and is a major pilgrimage site for Hindus.
Goa – Known for its stunning beaches, vibrant nightlife, and Portuguese architecture, Goa is a popular tourist destination for both domestic and international tourists.
Ajanta and Ellora Caves – Located in Maharashtra, the Ajanta and Ellora Caves are a group of ancient rock-cut Buddhist and Hindu cave temples that are UNESCO World Heritage sites.
Jim Corbett National Park – Located in Uttarakhand, the Jim Corbett National Park is famous for its tigers, elephants, and other wildlife, and is a popular destination for wildlife enthusiasts.
Hampi – Located in Karnataka, Hampi is a UNESCO World Heritage site and is known for its stunning ancient ruins and temple complexes.

These are some of the most popular tourist attractions in India, but there are many more that visitors can explore during their trip to the country.

Impacts of tourism in India

It is important that we consider the positive and negative impacts of tourism in every destination, including India. So, lets take a look at what India is doing right and what they can do better.

Social impacts of tourism in India

One of the beauties of tourism in India is the rich cultural exchange it fosters. Visitors get a first-hand experience of India’s deep-rooted traditions, while locals often get a broader understanding of global customs.

Yet, as with any dialogue, there can be misunderstandings. While tourism in India brings about cultural appreciation, there’s also the risk of stereotyping or commercialising certain traditions just to cater to the tourist gaze.

Environmental impacts of tourism in India

India, with its vast forests , serene backwaters, and majestic mountains, promises a natural retreat like no other. Tourism in India has, in many ways, shone a spotlight on the need to conserve these pristine pockets. National parks and wildlife sanctuaries thrive on tourist revenue.

However, there’s a balance to strike. The surge in tourism can lead to challenges like littering in the Himalayan trails or water pollution in the popular beaches of Goa. Each footprint, while seemingly small, can have lasting impacts, making sustainable tourism in India not just an option but a necessity.

Economic impacts of tourism in India

Economically speaking, tourism in India is a major player. It’s a source of income for many, from the rickshaw pullers of Delhi to the houseboat owners in Kerala. The ripple effects are felt in various sectors like hospitality, transport, and local handicrafts.

But here’s the twist: over-reliance on tourism can be tricky. Factors like political events or natural calamities can lead to fluctuations in tourist inflow, making diversification essential even within the realm of promoting tourism in India.

In a Nutshell: Impacts of Tourism in India

Here is a summary of the main impacts of tourism in India.

In closing, while the tapestry of tourism in India is undeniably vibrant, it’s crucial to weave it with care. Through informed strategies and mindful interactions, India’s tourism landscape can remain as diverse and enchanting as the nation itself.

Now that we know a bit more about tourism in India, lets take a look at at some of the most interesting facts about this magnificent country.

India is the seventh-largest country in the world by land area and the second-most populous country, with over 1.3 billion people.
India is known for its diverse geography , ranging from the Himalayan Mountains in the north to the beaches of Goa in the south.
India is the birthplace of four of the world’s major religions: Hinduism, Buddhism, Jainism, and Sikhism.
The Indian film industry, also known as Bollywood, produces the largest number of films in the world each year, surpassing Hollywood in the United States.
India is home to the world’s largest statue, the Statue of Unity, which is a tribute to Indian independence leader Sardar Vallabhbhai Patel.
The Indian Railways is the world’s fourth-largest railway network, with over 67,000 kilometers of track and over 8,000 stations.
The national symbol of India is the Bengal Tiger, which is a critically endangered species with only around 2,500 left in the wild.
India is the world’s largest producer of spices, with exports of spices contributing significantly to the country’s economy.
The game of chess originated in India, where it was known as chaturanga, and later spread to Persia and Europe.
India has a diverse cuisine, with each region having its own distinct flavors and specialties. Some popular Indian dishes include biryani, butter chicken, samosas, and dosas.

FAQs about tourism in India

Lastly, lets sum up this article by answering some of the most frequently asked questions about tourism in India.

What is the best time to visit India?

The best time to visit India depends on the region you plan to visit. Generally, the best time to visit most parts of India is from October to March, when the weather is cooler and drier.

What are some must-visit tourist attractions in India?

Some popular tourist attractions in India include the Taj Mahal, Jaipur’s Amber Fort, the beaches of Goa, Kerala’s backwaters, and the Himalayan mountain range.

Is it safe to travel to India as a solo traveler?

India can be a safe destination for solo travelers if you take the necessary precautions. It is important to be cautious and aware of your surroundings, especially when traveling alone.

What is the local currency in India, and can I use credit cards?

The local currency in India is the Indian rupee (INR), and credit cards are widely accepted in larger cities and tourist areas.

What should I wear when visiting India?

It is important to dress modestly when visiting India, especially when visiting religious sites. Avoid wearing revealing or tight-fitting clothes and dress in comfortable, lightweight clothes that cover your shoulders and knees.

What are some popular Indian dishes?

Indian cuisine is diverse and flavorful, with each region having its own distinct specialties. Some popular Indian dishes include biryani, butter chicken, samosas, and dosas.

How can I get around in India?

Getting around in India can vary depending on the region you are in. Options for transportation include taxis, auto-rickshaws, buses, and trains. Domestic flights are also available for longer distances.

Is it necessary to tip in India?

Tipping is not mandatory in India, but it is common to tip service staff, such as waiters and bellboys, around 10% of the bill amount.

What languages are spoken in India?

There are many languages spoken in India, with Hindi being the most widely spoken. Other major languages include Bengali, Telugu, Marathi, Tamil, and Urdu.

What are some common customs and traditions in India?

India has a rich culture and tradition, with many customs and traditions varying by region and religion. Some common customs include removing shoes before entering a temple, greeting elders with folded hands, and wearing traditional attire for weddings and other special occasions.

To conclude

Tourism in India is a journey through rich cultures, breathtaking landscapes, and bustling markets. While its myriad offerings captivate the soul, it’s vital to travel with awareness and respect. Embracing sustainable practices ensures that the timeless allure of India continues to enchant travellers for generations to come.

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Gulfood dubai 2023, tourism and hospitality, indian tourism and hospitality industry analysis, the tourism sector is projected to contribute us$ 250 billion to the country’s gdp by 2030, generating employment for 137 million individuals., advantage india, robust demand.

* The Medical Tourism sector is predicted to increase at a CAGR of 21.1% from 2020-27.

* The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.

* International tourist arrivals are expected to reach 30.5 million by 2028.

* According to WTTC, over the next decade, India’s Travel & Tourism’s GDP is expected to grow at an average of 7.8% annually.

Attractive Opportunities

* India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure.

* Travel and tourism are two of the largest industries in India, with a total contribution of about US$ 178 billion to the country’s GDP.

* The country’s big coastline is dotted with attractive beaches.

Policy support

* US$ 2.1 billion is allocated to Ministry of Tourism in budget 2023-24 as the sector holds huge opportunities for jobs and entrepreneurship for youth. Rs. 2,400 crore (US$ 289.89 million) allocated to the Ministry of Tourism as the sector holds huge opportunities for jobs and entrepreneurship for youth.

* Under the Union Budget 2023-24, an outlay of US$ 170.85 million has been allocated for the Swadesh Darshan Scheme.

* 68 destinations/sites have been identified in 30 States/UTs for development under the PRASHAD Scheme as on March 31, 2022.

Diverse Attractions

* According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth Rs. 15.9 trillion (US$ 191.25 billion) in 2022.

Tourism and Hospitality Industry Report

India is a large market for travel and tourism. It offers a diverse portfolio of niche tourism products - cruises, adventure, medical, wellness, sports, MI CE, eco-tourism, film, rural and religious tourism. India has been recognized as a destination for spiritual tourism for domestic and international tourists. In his Independence speech from Red Fort, Prime Minister Mr.

Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022 to promote tourism. India ranked 34 in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum. India is the most digitally advanced traveller nation in terms of digital tools being used for planning, booking, and experiencing a journey. India’s rising middle class and increasing disposable income have supported the growth of domestic and outbound tourism.

India has been ranked 54th in Travel and Tourism Development Index (TTDI) in 2021 published by the World Economic Forum.

According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth Rs. 15.9 trillion (US$ 191.25 billion) in 2022.

The Indian travel and tourism industry is expected to record an annual growth of 6.7% per annum and achieve 9.2% of GDP with US$ 488 billion. According to WTTC, over the next decade, India’s Travel & Tourism GDP is expected to grow at an average of 7.8% annually.

In WTTC’s Economic Impact 2022 report, India’s Travel and Tourism GDP contribution grew by 5.8%, which was the sixth-highest after the US, China, Germany, Japan and Italy.

In 2021, the travel & tourism industry’s contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028. By 2029, it is expected to account for about 53 million jobs.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in October 2023 were 8,11,411. FTAs during the period January-October 2023 were 72,43,680 as compared to 46,55,160 in January-October 2022.

The percentage share of Foreign Tourist Arrivals in India during October 2023 among the top 5 ports was highest at Delhi Airport (34.74%) followed by Mumbai Airport (14.75%), Haridaspur Land Check Post (9.03%), Chennai Airport (7.05%), Bengaluru Airport (5.71%). FTAs during the period January-September 2023 were 6.43 million.

The percentage share of Foreign Tourist Arrivals in India during October 2023 among the top 5 source countries was highest from Bangladesh (21.41%), followed by USA (15.65%), UK (11.27%), Australia (4.38%) and Canada (3.81%).

In 2023-24* (January-October), 24.97% of foreign tourists visited for Indian Diaspora which marks 72,43,680 foreigners.

Tourism is the third largest foreign exchange earner for the country. FEE during the period January-October 2023 were US$ 22.32 billion.

Domestic visitor spending increased by 20.4% in 2022, only 14.1% below 2019. International visitor spending rose by 81.9% in 2022, but still 40.4% behind 2019 numbers.

Cumulative FDI equity inflow in the Hotel and Tourism industry is US$ 17.29 billion during the period April 2000-September 2023. This constitutes 2.60% of the total FDI inflow received across sectors.

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

By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.

Tourism Ministry has undertaken the ‘NamasteIndia’ Campaign for encouraging international visitors to travel to India.

In the Union Budget 2023-24, US$ 290.4 million has been allocated to the Ministry of Tourism. Under the Union Budget 2023-24, an outlay of US$ 170.85 million has been allocated for the Swadesh Darshan Scheme to develop a complete package of 50 tourist destinations for providing a wholesome tourism experience by facilitating physical, digital, and virtual connectivity, availability of tourist guides and tourist security.

Ministry has sanctioned 76 projects under the scheme since its inception under 13 themes for a revised sanctioned cost of US$ 668.95 million and has released US$ 534.9 million (till December 31, 2021).

Under Budget 2023-24, the Government has allocated US$ 30.25 million for the development of tourist circuits under PRASHAD. Since its launch in January 2015 and Ministry has sanctioned 37 projects in 24 states with estimated expenditure of US$ 146.4 million and a cumulative amount of US$ 91.6 million has been released for these projects. 68 destinations/sites have been identified in 30 States/UTs for development under the PRASHAD Scheme as on March 31, 2022.

Ministry of Tourism has partnered with the Quality Council of India (QCI), to assist the Hospitality Industry in their preparedness to continue operations safely and mitigate risks arising out of the COVID-19 pandemic through an initiative called SAATHI (System for Assessment, Awareness and Training for Hospitality Industry). A hotel/unit goes through the SAATHI framework and agrees to fully follow the requirements wherever applicable possible, and a self-certification is issued. Self-certified hotels/units attend webinars to clarify doubts through live interactions. If Hotel/unit desires, they may undertake a site assessment based on the SAATHI framework through QCI-accredited agencies and an assessment report with opportunities for improvement is shared with the assessed unit.

In June 2022, the Ministry of Tourism along with the Associations of Indian Universities (AIU) initiated a 12-episode webinar series under ‘Azadi Ka Amrut Mahotsav’ (AKAM) to engage and expose young minds of our country to the rich and diverse heritage of the country.

Accor, a French hospitality major will expand its India portfolio by adding nine additional hotels in the mid-scale and economy categories, bringing the total number of hotels to 54 in India.

The Medical Tourism sector is expected to increase at a CAGR of 21.1% from 2020-27.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.

The Ministry of Tourism has approved 16 projects for over Rs. 1,300 crore (US$ 171.2 million) in India's North-East.

The Ministry of Road Transport and Highways has introduced a new scheme called ‘All India Tourist Vehicles Authorisation and Permit Rules, 2021’, in which a tourist vehicle operator can register online for All India Tourist Authorisation/Permit. This permit will be issued within 30 days of submitting the application.

The United Nations World Tourism Organisation selected Pochampally in Telangana as one of the best tourism villages in November 2021.

In December 2023, IHCL expanded its presence in Maharashtra as it signed a hotel in Bandra, Mumbai. The Brownfield project will be branded an IHCL- SeleQtions hotel.

In December 2023, TAJ won the ‘World’s finest luxury grand palaces’ award at the ‘101 Best Executive Summit’ in Germany.

In November 2023, Indian Hotels Company (IHCL) announced the opening of Ginger Mumbai, Airport. The 371 Keys flagship Ginger hotel, strategically located near the domestic airport will introduce the brand’s lean luxe design and service philosophy of offering a vibrant, contemporary, and seamless hospitality experience to its guests.

In September 2023, Mahindra Holidays & Resorts (MHRIL) signed an MOU with the Government of Uttarakhand (UK) to invest Rs. 1,000 crore (US$ 120.16 million) and build 4-5 large marquee resorts over the next few years in Uttarakhand.

OYO estimates India to present a US$ 26 billion opportunity by 2030. To further strengthen its position in India, in October 2021, the company filed its draft red herring prospectus (DRHP) for an initial public offering (IPO) of Rs. 8,430 crore (US$ 1.2 billion) with the Securities and Exchange Board of India (SEBI).

The Government of India launched the e -Visa on November 27, 2014 and subsequently e-Tourist Visa was initially introduced for 46 countries.

The e-Tourist Visa is part of t e-Visa facility which includes an e-Business Visa, e-Conference Visa, e-Medical Visa, and e-Medical Attendant Visa.

In 2021, the Government of India announced 40,000 e-tourist visas out of 500,000 free regular visas to the tourist, to ensure a geographical spread of the incentive to important source markets globally.

In December 2019, e-visa facility was offered to around 170 countries.

The facility for e-tourist visa has been extended to passengers arriving at these ports of Mumbai, Mormugao, Mangalore, Kochi, and Chennai and immigration counters have been set up at five major ports visited by cruise ships, thus facilitating the cruise passenger arrivals at the seaports.

‘Medical Visa’ has been introduced, which can be given for specific purpose to foreign travelers coming to India for medical treatment. ‘E-Medical Visa’ has also been introduced for 166 countries.

India has invested heavily in AYUSH and is in a unique position to attract medical value travellers for a cure through AYUSH and for enhancing wellness.

India is ranked 10th out of the top 46 countries in the world in the Medical Tourism Index 2020-21 by Medical Tourism Association. The Indian medical tourism industry was estimated to be valued at US$ 7,417 million in 2022 and it is projected to surpass US$ 42,237.47 million by 2032.

Cruise tourism is one of the most vibrant and fast-growing sectors of the leisure and travel industry. The Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31.

Moreover, India is looking to take advantage of its 7,500 km coastline to tap the growth potential of the cruise tourism segment.

Ministry of Tourism is funding the development of cruise terminals, lighthouses, and other tourist infrastructure in several coastal locations to promote domestic and international cruise terminals at selected ports by 2023.

Ministry of Tourism has also sanctioned US$ 27.7 million for various projects towards the development of Cruise Terminals and related infrastructure in different States at the major ports under the scheme for ‘Assistance to Central Agencies for Tourism Infrastructure Development.

National strategy and roadmap for the development of rural tourism aims at prioritization of rural tourism at the national level.

This can benefit the local community economically and socially and facilitate interaction between tourists and locals for a mutually enriching experience.

India has rich natural and eco-tourism resources ranging from pristine forests, the snow-clad Himalayas, montane grasslands, golden and silver deserts, rivers, lakes, wetlands, mangroves, beaches, volcanoes and corals, housing tremendous biodiversity.

In 2021, the Ministry of Forest, Environment and Climate Change issued “Ecotourism guidelines in and around protected areas 2021” based on the key recommendations of the Tiger Task Force (2005), provisions contained in the Wildlife (Protection) Act 1972, Scheduled Tribes and Other Forest Dwellers (Recognition of Forest Rights) Act 2006.

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States with Largest Domestic Tourist Arrivals in 2021

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Development of Tourism in India, Current Landscape, Government Initiatives

Tourism in India holds immense potential as a significant contributor to country's economy, despite facing various challenges. Read this article for Opportunities for Development of Tourism in India.

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Development of Tourism in India

Tourism in India holds immense potential as a significant contributor to the country’s economy, despite facing various challenges. With its rich cultural heritage, diverse landscapes, and historical monuments, India has always been a magnet for travellers from around the globe. However, the development of this sector has been met with both successes and hurdles.

Current Landscape and Economic Impact of Tourism in India

Tourism in India contributes approximately 4.6% to the nation’s GDP, as per the Ministry of Tourism. Despite not being prioritized by the government, the sector plays a vital role in job creation, supporting over 32 million jobs in 2021. The World Travel and Tourism Council reported that in 2021, tourism generated ₹13.2 lakh crore (US$170 billion), accounting for 5.8% of India’s GDP.

However, the COVID-19 pandemic significantly impacted tourism, leading to a decline in foreign tourist arrivals by 44% in 2022 compared to 2019 figures. Nonetheless, India’s domestic tourism market remains robust, with over 1 billion domestic tourist visits recorded in 2012.

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Strengths and Challenges in India’s Tourism Sector

India possesses numerous strengths that bolster its tourism sector. The country’s cultural and natural resources, including historical monuments, scenic landscapes, and diverse wildlife, attract travellers worldwide. Additionally, India’s air transport infrastructure and natural resources are highly regarded globally.

However, the sector also faces several challenges. Infrastructure deficiencies, such as inadequate road networks and outdated facilities, hinder the tourist experience. Moreover, safety concerns, including issues related to women’s safety and petty crime, can deter potential visitors. Additionally, bureaucratic red tape and complex visa procedures have been cited as barriers to tourism growth.

Opportunities for Growth and Development of Tourism in India

Despite the challenges, India’s tourism sector offers ample opportunities for growth and development:

Diverse Attractions: From historical monuments and cultural festivals to scenic landscapes and adventure sports, India offers a wide range of tourist attractions. Leveraging these diverse offerings can attract travellers with varied interests and preferences.
Cultural Experiences: India’s rich cultural heritage and traditions provide unique experiences for tourists. Promoting cultural tourism, including heritage walks, culinary tours, and traditional art forms, can attract visitors seeking authentic cultural experiences.
Medical Tourism: India has emerged as a leading destination for medical tourism, offering high-quality healthcare services at competitive prices. With state-of-the-art hospitals and skilled medical professionals, India attracts patients from around the world for treatments ranging from surgeries to wellness retreats.
Rural and Eco-Tourism: There is growing interest in experiential and sustainable tourism experiences, such as rural homestays, wildlife safaris, and initiatives. Encouraging community-based tourism initiatives can benefit rural economies while conserving natural resources.
Digital Transformation: Technology plays a crucial role in enhancing the tourism experience, from online booking platforms and virtual tours to digital marketing strategies. Embracing digital innovations can improve accessibility, convenience, and connectivity for travellers.

Government Initiatives to Promote India’s Tourism Sector

The Government of India has taken several initiatives to promote tourism development:

Policy Support: The Ministry of Tourism formulates national policies and collaborates with stakeholders to develop and promote tourism. Efforts are underway to simplify regulations, improve infrastructure, and enhance the overall tourism experience.
Incredible India Campaign: The Incredible India campaign showcases India’s tourism potential through multimedia campaigns, roadshows, and promotional events. It highlights the country’s cultural diversity, natural beauty, and hospitality to attract international travellers.
Niche Tourism Promotion: The government is focusing on promoting niche tourism products such as rural, cruise, medical, and eco-tourism. Specialized marketing campaigns and infrastructure development initiatives are aimed at tapping into niche markets and diversifying the tourism portfolio.
Public-Private Partnerships: Collaborations between the government, private sector, and local communities are essential for tourism development. Public-private partnerships facilitate investment, infrastructure development, and skill enhancement in the tourism sector.

Future Outlook For Tourism Development in India

Despite the challenges posed by the pandemic and other systemic issues, the outlook for tourism in India remains optimistic. With concerted efforts from the government, private sector, and other stakeholders, the sector is poised for growth. Forecasts suggest that tourism could contribute 7.2% of India’s GDP by 2031, underscoring its potential as a key driver of economic development.

In conclusion, tourism development in India presents challenges and opportunities. By addressing infrastructure deficiencies, promoting niche tourism products, and prioritizing safety and security, India can unlock the full potential of its tourism sector and emerge as a premier global destination for travellers.

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Development of Tourism in India FAQs

What is the current development of tourism in india.

Today tourism is the largest service industry in India, with a contribution of 6.23% to the national GDP and providing 8.78% of the total employment.

What is the role of tourism in development?

In developing countries, tourism development has been used as an important strategy for increasing economic growth, alleviating poverty, creating jobs, and improving food security.

What is the importance of tourism in India?

Tourism in India has grown substantially. It promotes National Integration and provides support to local handicrafts and cultural pursuits.

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Impact of travel and tourism industry on the Indian economy

Wherein many international countries are still recovering from the pandemic repercussions. The Indian economy car is excellently speeding through it. Though many sectors are helping in progression but travelling and tourism is gearing the tempo.

India as a country is blessed with the geographical and climatic gifts of diversification, beautification and exuberance. Right from the snowy Himalayan mountainous ranges to the dense tropical forests of Kerala, India offers a wide variety of variations and suits the spirit of almost all keen travellers.

Not with, just the topography, India tends to attract visitors from in and around the world with its extremely welcoming, warm, and kind-natured citizens. “Atithi Devo Bhava” is fondly followed by Indians and the Indian government.

All of these highly adaptable features make the Indian tourism industry an economic multiplier. Increasing investment destinations, thriving digitalisation, and gen Z-friendly platforms like Travel Now Pay Later (TNPL), are making travelling and tourism a fortune wheel for the Indian growth scale.

According to the WTTC (World Travel and Tourism Council), the travel and tourism sector’s contribution to the Indian GDP will outpass the pre-pandemic levels by 2024, and this seems to get true with the G-20 delegation coming to India. The tourism sector upscaling vigorously helps the country flourish as this sector push open the gate of opportunities for many other fields. Generating jobs, enhancing skills, inspiring local artisans and tradespeople, and providing economic support to hotels, entertainment, and transportation services.

India is now outshining and gaining fame for facilitating the best of the best services in medical tourism, ecotourism, adventure tourism, cruise tourism, cultural tourism, and pilgrimage tourism and now as evident with the G-20 leadership, business travel will too become extremely popular. With so much so, it is expected that Indian tourist arrivals will reach 30.5 million and will generate approximate revenue of over 59 USD billion dollars by 2028.

The potential and growth of tourism are evident and appreciated which is why the respected finance minister Nirmala Sitharaman during her budget 2023 presentation quoted “50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism”. The Foreign Exchange Earnings (FEEs) through tourism in India for the years 2019 to 2021 is ₹ 2,11,661cr in 2019, ₹50,136cr in 2020 and ₹65,070cr in 2021,” the ministry informed the Upper House.

The increased FTA (Foreign Tourist Arrivals) will certainly increase the potential of foreign exchange income and foreign investment in India which again in return will help the country and our countrymen to prosper.

It is not only about the financial inputs, the booming travel and tourism industries also provide a sustainable overall human development with 20 million people currently working in the Indian tourism industry, it is also anticipated that employment opportunities in the upcoming years will raise up to 140 million.

The fast pacing tour and travelling industries have improvised themselves to another level by habituating and accepting the mate ship of technology and digitisation. The online marketing of the packages and advertising even the rarest and least known tourist destinations has increased the interest of not only outsiders but of Indian explorers too, in fact, Indian tourists are predicted to be amongst the top spenders in 2023.

Tours and travel companies are constantly putting in the hard labour to understand and move one step ahead of the trend. With staycation, workcation and many other new trends setting in, firms are trying to accommodate and provide the best travel experience to the shoppers. As tour and travel companies play an integral role in being a part of the financial development of the country. One can hope that our country too attains a lot of financial success with our government’s Swadesh Darshan 2.0 scheme.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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Detailed statistics

Travel & tourism development rank India 2011-2021

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Contribution of travel and tourism to GDP of India 2019-2022

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Value of travel market in India FY 2018-2027

Travel market distribution in India FY 2018-2027, by type

Recommended statistics

Key figures.

Basic Statistic Direct contribution of tourism and hospitality to GDP in India 2012-2028
Basic Statistic Revenue share from tourism in India 2013-2022, by segment
Premium Statistic Distribution of direct travel and tourism GDP in India FY 2023, by spending type
Basic Statistic Number of jobs in travel and tourism sector in India FY 2014-2022
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Direct contribution of tourism and hospitality to GDP in India 2012-2028

Direct contribution of tourism and hospitality to GDP in India from 2012 to 2017, with an estimate until 2028 (in billion U.S. dollars)

Revenue share from tourism in India 2013-2022, by segment

Distribution of revenue from tourism to GDP in India from 2013 to 2022, by segment

Distribution of direct travel and tourism GDP in India FY 2023, by spending type

Distribution of direct travel and tourism GDP in India in the financial year 2023, by spending type

Number of jobs in travel and tourism sector in India FY 2014-2022

Number of direct and indirect jobs in the travel and tourism sector across India from financial year 2014 to 2022, with projection for 2023 (in millions)

PE/VC investment deals in travel and hospitality 2013-2022

Number of private equity and venture capital deals in the travel and hospitality sector in India from 2013 to 2022

Premium Statistic Tourist arrivals at India 2022, by region
Basic Statistic Number of domestic tourist visits in India 2000-2022
Premium Statistic Number of foreign tourist arrivals in India 2008-2022
Premium Statistic Number of visitors to national monument India FY 2017-2022, by type
Premium Statistic Number of domestic visitors to ticketed monuments India FY 2023
Premium Statistic Number of foreign visitors to ticketed monuments India FY 2023

Tourist arrivals at India 2022, by region

Tourist arrivals at India in 2022, by region (in 1,000s)

Number of domestic tourist visits in India 2000-2022

Number of domestic tourist visits in India from 2000 to 2022 (in millions)

Number of foreign tourist arrivals in India 2008-2022

Number of foreign tourist arrivals in India from 2008 to 2022

Number of visitors to national monument India FY 2017-2022, by type

Number of visitors to national monuments across India from financial year 2017 to 2022, by type (in millions)

Number of domestic visitors to ticketed monuments India FY 2023

Leading ticketed monuments in India in financial year 2023, by number of domestic visitors (in 1,000s)

Number of foreign visitors to ticketed monuments India FY 2023

Leading ticketed monuments in India in financial year 2023, by number of foreign visitors (in 1,000s)

Travel services

Premium Statistic Online travel agency usage India 2023, by gender
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Premium Statistic Device used for online travel agency India 2023, by age group
Premium Statistic Purpose of online travel agency usage India 2023, by age group
Premium Statistic Reason for not using online travel agency India 2023, by gender

Online travel agency usage India 2023, by gender

Share of online travel agency usage in India as of June 2023, by gender

Agencies used for online services India 2023 by gender

Share of agencies used for online travel services in India as of June 2023, by gender

Device used for online travel agency India 2023, by age group

Device used to access online travel agencies in India as of June 2023, by age group

Purpose of online travel agency usage India 2023, by age group

Purposes of using an online travel agency in India as of June 2023, by age group

Reason for not using online travel agency India 2023, by gender

Share of reasons for not using online travel agencies in India as of June 2023, by gender

Market overview

Premium Statistic Value of travel market in India FY 2018-2027
Premium Statistic Travel market distribution in India FY 2018-2027, by type
Premium Statistic Travel market distribution in India FY 2018-2027, by booking channel
Premium Statistic Value of hotel market in India FY 2018-2027
Premium Statistic PE/VC investments in travel and hospitality 2013-2022

Value of the travel market in India from financial year 2018 to 2020, with an estimate for 2027 (in billion U.S. dollars)

Distribution of Indian travel market from financial year 2018 to 2020, with an estimate for 2027, by type

Travel market distribution in India FY 2018-2027, by booking channel

Travel market distribution across India from financial year 2018 to 2020, with an estimate for 2027, by booking channel

Value of hotel market in India FY 2018-2027

Value of hotel market in India from financial year 2018 to 2020, with an estimate for 2027 (in billion U.S. dollars)

PE/VC investments in travel and hospitality 2013-2022

Private equity and venture capital investments in travel and hospitality sector in India from 2013 to 2022 (in million U.S. dollars)

Hotel industry

Premium Statistic Distribution of hotel market in India FY 2018-2027, by type
Premium Statistic Distribution of the hotel market in India FY 2018-2027, by booking channel
Premium Statistic Number of hotel rooms in India FY 2001-2023
Premium Statistic Number of approved hotels in India 2022, by category
Premium Statistic Supply of hotel rooms in India FY 2022-2023, by city
Basic Statistic Occupancy rate in hotels in India FY 2001-2024

Distribution of hotel market in India FY 2018-2027, by type

Distribution of the hotel market across India from financial year 2018 to 2020, with an estimate for 2027, by type

Distribution of the hotel market in India FY 2018-2027, by booking channel

Distribution of the hotel market across India from financial year 2018 to 2020, with an estimate for 2027, by booking channel

Number of hotel rooms in India FY 2001-2023

Number of hotel rooms across India from financial year 2001 to 2023, with an estimate until 2027 (in 1,000s)

Number of approved hotels in India 2022, by category

Number of approved hotels in India in 2022, by category

Supply of hotel rooms in India FY 2022-2023, by city

Existing supply of hotel rooms across Indian cities from financial year 2022 to 2023 (in 1,000s)

Occupancy rate in hotels in India FY 2001-2024

Occupancy rate in hotels in India from financial year 2001 to 2023, with estimates of 2024

Major players

Basic Statistic Leading hotel and restaurant companies in India 2023, by market capitalization
Basic Statistic Domestic market share of airlines across India FY 2023, by passengers carried
Premium Statistic Revenue of Airbnb India FY 2018-2020
Premium Statistic Revenue of OYO across India FY 2019-2023
Premium Statistic Thomas Cook India revenue FY 2020-2023
Premium Statistic MakeMyTrip's revenue FY 2015-2023

Leading hotel and restaurant companies in India 2023, by market capitalization

Leading hotel and restaurant companies in India as of 2023, based on market capitalization (in billion Indian rupees)

Domestic market share of airlines across India FY 2023, by passengers carried

Domestic market share of airlines across India in financial year 2023, by passengers carried

Revenue of Airbnb India FY 2018-2020

Revenue of Airbnb India from financial year 2018 to 2020 (in million Indian rupees)

Revenue of OYO across India FY 2019-2023

Revenue of OYO across India from financial year 2019 to 2023 (in billion Indian rupees)

Thomas Cook India revenue FY 2020-2023

Revenue of Thomas Cook (India) Limited from financial year 2020 to 2023 (in billion Indian rupees)

MakeMyTrip's revenue FY 2015-2023

Revenue of MakeMyTrip Limited from financial year 2015 to 2023 (in million U.S. dollars)

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Importance of Tourism in India

Tourism plays an important role in Indian Economy. The Central and State Governments acknowledges the importance of tourism industry. Tour is a part of education.

India is an ancient country. Historical monuments, archaeological wealth and relics are spread all over the country. Therefore, people of various countries come to India every year to see innumerable lovely spots, historic sites and places of pilgrimage. During travel a tourist must assimilate what nature has to offer, what relics of history seems to teach and what would life ultimately seeks to convey.

Tourism helps the visitors get acquainted with the culture, customs, language and way of life of the local people. The modern life of Indian people are very complex. Tour and holidays brings the much-need relaxation to our mind, body and soul. It refreshes our body and gives back our fitness. The spirit of happiness becomes visible on our beaming faces.

The concept of tourism has become a new coinage in the field of travelling. Few years hack travelling was a term which men used in case of tour. People now are more habituated with the concept of ‘tourism’ and all want to know the unknown historic sites and also to see the unseen. In India, from the Himalayas to Kanyakumari there are so many lovely spots, historic sites places of pilgrimages, various temples and Musjids spread over the country. In ancient times, Uttaranchal was the land of God. Badrinath, Kedarnath, Amarnath, Gangotri, and Hemkund- all surrounded by snow-capped peaks attract pious souls and tourists alike. The beautiful places like Simla, Nainital and Ranikhet with snow-clad ranges attract the tourists of India and abroad. Trips to Puri, to Kanyakumari, the southernmost tip of land in India, to Chennai, Mumbai and Goa are equally excellent. Tajmahal of Agra, the Red-Fort of Delhi, the ruins of Nalanda, cave-temples of Ajanta and Ellora, shrines of Mathura, Somnath and Benaras charm the tourists. Kashmir and Shillong are also great places in the tourist Map.

Tourism is flourishing as an industry. The economy of many tourist places depends upon tourism. The important hill stations of India are Ooty, Manali, Simla, Gangtok, Darjeeling, Mirik, etc. These beautiful hill stations draws tourists’ attraction. The wild life sanctuary of Dooars also attracts the tourists. Wilderness of the Sunderbans, Gour and Pandua of Malda, Lalbag of Murshidabad and Mayapur of Nabadwip are also places for tourists from both India and abroad. Presently, tourism industry is a big source of income of foreign money.

“Spiritual Tourism” is the new aspect in the concept of tourism. It is more about visiting hearts and minds of intellectuals and rich civilizations than just seeing places and their physical dimensions. Therefore, the Tourism is a force and it can guide us in the period of unrest.

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