Current status of Tourism in India

By Ambuj Saxena

Tourism is a vibrant sector in world economy. It creates jobs, both through direct employment within the tourism industry and indirectly in sectors such as retail and transportation. When tourists spend their wages on goods and services, it leads to what is known as the “multiplier effect,” creating more jobs. The tourism industry also provides opportunities for small-scale business enterprises, which is especially important in rural communities, and generates extra tax revenues, such as airport and hotel taxes, which can be used for schools, housing and hospitals.

Thus, in India, tourism takes precendence over many sectors when it comes to employment generation and Foreign Exchange Earnings.

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Contribution to Indian economy: While tourism contributes 6.8% GDP and 8.7% of total GDP towards employment generation, it generates $2.1 billion Foreign Exchange earnings.  

Tourism as an Employment generator: An Investment of Rs. 10 lakh generates employment of 78 people if invested in Tourism and Hospitality sector while the same amount of investment generates 45 and 18 jobs in the Manufacturing and Agriculture sectors respectively.
[Source: Ministry of Tourism, Government of India.]

Budget analysis by BnBNation in Tourism sector
Tourism is a prominent employment generator

 

Global ranking of India

According to World Economic Forum’s Travel & Tourism Competitiveness Index 2015, India is ranked 52, while China is placed at 17 and Malaysia at 25.

Moreover, India has less than 1% global FTA, 0.68% to be precise.

Isn’t it strange that a country with 27 World Heritage sites, 10 Biosphere Reserves, 7500 km long coastline, 9000 years of cultural heritage is lagging behind other countries when it comes to tourism?

Why does India have a lower than 1% FTA globally?

  • Lack of short-term, medium term and long term goals in the tourism sector.
  • Poor infrastructure including badly maintained roads
  • Poor traffic management: Sprawling traffic in metropolitan cities
  • Reckless driving
  • Filthy and overcrowded railway stations make it difficult to get seats on the train
  • Internal flights are expensive and lack connectivity to hinterland
  • Unsafe environment- Nirbhaya murder case has dent India’s image on the global tourism map
  • Lack of Tourist police which leads to harassment of foreign tourists!

So where should India concentrate its efforts? How can we, as citizens play our role in encouraging people to visit India for religious, leisure, business or other purposes?

May be the answer lies in adequate budget allocation, robust macroeconomic policies and our behavior and mindset.

In the upcoming blog, BnBNation team shall analyse what does the Union Budget 2017 contain for the Tourism sector. We shall suggest what more could the Finance Minister have done to propel India’s tourism sector in Budget 2017 .

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Watch this space for more. Please feel free to share your thoughts in the comment box below.

About the Author:

Ambuj Saxena is Co-Founder at BnBNation.com. He is a 2013 Brand Management graduate from Mudra Institute of Communications, Ahmedabad (MICA). He has successfully executed various online and offline marketing campaigns for companies operating in Automobile, Fashion and Lifestyle, Travel and Tourism sectors as well as Government departments. He has co-founded BnBNation as he believes that Tourism and Hospitality is as much online as it is offline, and he can add value to both. BnBNation covers specific events that showcase India’s cultural heritage.

Sources of inspiration:

Ministry of Tourism

https://drggsaxena.blogspot.in/2016/09/impact-of-e-tourism-visa-scheme-on.html

http://traveltips.usatoday.com/positive-negative-effects-tourism-63336.html

13 thoughts on “Current status of Tourism in India”

  1. Like contribution of foreign tourists arrival in India @0.68 % of total FTA, Govt of India too contributes just less than matching annual outlay of 0.1% !!!. This ,too, is besides the fact that Heads of Govt in past or in present realise that little more on budgetry support will ensure multiplier effect on employment generation. Shouldn’t interest on loans for Hospitality sector ventures be reduced to , say 3 or 4% !!! Also, why not bring Tourism in concurrent list to ensure synergy amongst Centre and State. Is anybody in Govt listening!!

    1. Thank you for your encouraging words, Dr GG Saxena. Your suggestions are valid and to the point. The objective of this post is to make the government sit up and notice and your comments are vital in that regard.
      Regards
      BnBNation team

  2. Thanks for the information on tourism in India. I had no idea it was lagging behind so much in comparison to other countries. It’s definitely been on my list of places to see. They will have to figure out a way to bring more tourists to India.

    1. Thank you for sparing your time to read the blog post carefully. Ministry of Tourism had called our company, BnBNation for suggestions to improve the state of affairs. We compiled a set of recommendations so that the Government of India can use while drafting a new tourism policy but the end result is still awaited! Fingers crossed!

    1. Chiara, thank you for taking out time to read the blog post! India is improving the status of tourism every day and though they may be baby steps but they are all in the right direction. This blog post is supposed to be a reminder call to the authorities but India is doing exceedingly well on the macro-economic level!
      You should read our Blog post on what Indian Union budget 2017 holds for the tourism sector to know more: http://bnbnation.com/blog/dont-plan-your-visit-to-india-without-knowing-the-budget-announcements/

    1. Thank you for your encouraging words! India is a land of great cultural and natural heritage. This blog post is meant to serve as a wake up call up to the various tourism stakeholders in India.

  3. Very interesting and informative post. I have never been to India, but I really want to. The informations you gave us are very helpful thank you so much for sharing it with us

    1. Hi
      We are glad you found the information intriguing and would play a role while you are planning your trip to India. However, India is so diverse, so colorful and vibrant that it can’t be summarised in a blog post. You have to be in India, ready for all sorts of experiences to be able to judge it properly! There are many people who have come with a not so positive view about India but have stayed in a bed and breakfast accommodation selected by our team and have interacted with us and the Indian families. They have gone back with a big grin across their faces and fond memories in heart! Thus, you have to visit India to be able to judge India! We’ll hope you plan soon and let this Incredible country give an everlasting smile on your face!
      Regards,
      BnBNation Team

    1. Dear Visvas India,

      Thank you for your encouraging words. It keeps us working harder! Soon, our mentor Dr GG Saxena,IAS Retd, shall be sharing the steps forward for the tourism sector. It will act as a set of recommendations for the policy makers.
      You may subscribe to our blog site to get updates.

      Regards,
      BnBNation Team

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