IBEF印度旅游与酒店业分析英文20181037页1mb

Summary of India's Tourism and Hospitality Industry

Core Content

India's tourism and hospitality sector is a significant contributor to the country's economy, offering substantial GDP growth, employment opportunities, and foreign exchange earnings. The sector is supported by a range of government initiatives, policy reforms, and strategic developments that are driving its expansion and modernization.

Main Points

Economic Contribution

• GDP Contribution: In 2017, the tourism and hospitality sector contributed Rs 5.94 trillion (US$ 91.27 billion) to India's GDP, with a projected CAGR of 7.23% from 2012 to 2028, reaching Rs 12.68 trillion (US$ 194.69 billion) by 2028.
• Foreign Exchange Earnings (FEEs): In CY 2017, India earned US$ 27.693 billion from tourism, which increased by 11.8% to US$ 19.46 billion in January-August 2018. The FEEs are expected to grow at a CAGR of 9.97% from 2006 to 2017.
• Domestic Expenditure: Domestic tourism expenditure was US$ 186.03 billion in 2017, projected to rise to US$ 405.84 billion by 2028, with a CAGR of 7.29%.

Employment Impact

• The sector accounted for 8% of total employment opportunities in 2017, providing jobs to 41.6 million people, and is expected to grow to 52.3 million jobs by 2028.

Tourism Segments

• Leisure Tourism: Dominates the market, contributing 94.6% of total tourism revenue in 2017, with expected growth to 432.3 billion USD by 2028.
• Business Tourism: Revenue stood at US$ 11.6 billion in 2017, projected to increase to US$ 24.4 billion by 2028.
• Niche Segments: Includes medical tourism, eco-tourism, adventure tourism, spiritual tourism, rural tourism, cruises, and luxury tourism.
• Medical Tourism: Expected to reach US$ 9 billion by 2020, with medical visas (M visas) introduced to support this segment.
• Cruise Tourism: Projected to reach 1.2 million visitors by 2030–31, with cruise terminals planned in Chennai and Mumbai.

Government Initiatives

• Swadesh Darshan: Focuses on developing 13 thematic circuits and promoting rural tourism. Budget allocation of Rs 1,250 crore (US$ 193.08 million) was announced in 2018–19.
• PRASAD (Pilgrimage Rejuvenation and Spiritual Augmentation Drive): Aims to improve facilities at pilgrimage centers, with Rs 5638.87 crore (US$ 868.87 million) sanctioned since 2014–15.
• E-Tourist Visa: Launched in 2016, it has been extended to 163 countries and saw a 57.2% increase in arrivals in CY 2017, reaching 1.697 million.
• Visa on Arrival: Approved for 150 countries, leading to a CAGR of 120.99% in tourist arrivals from 2010 to 2017.
• Tourist Police: Deployed in State Governments/Union Territories to enhance safety for tourists.
• Incredible India Campaign: Launched to promote India as a top tourist destination, with a focus on cultural, religious, and natural attractions.

Industry Growth Drivers

• FDI Inflows: The tourism and hospitality sector has attracted US$ 11.39 billion in FDI from April 2000 to June 2018.
• Capital Investments: Expected to reach US$ 95.3 billion by 2028, with 250 airports planned by 2020.
• Policy Support: Includes tax incentives, 100% FDI under automatic route, and public-private partnerships.
• Digital Transformation: Companies like MakeMyTrip and Thomas Cook are adopting online booking, mobile apps, and AI-powered chatbots to enhance customer experience and streamline operations.

Key Players

• Hotel Chains: ITC, Oberoi, Taj, Marriott, Hilton, and Louvre Hotels Group are expanding their presence in India.
• Online Travel Platforms: Yatra.com, Cleartrip.com, MakeMyTrip, TravelCity, TravelChacha, and Ixigo are major online players.
• Tour Operators: SOTC, Raj Travels, and Thomas Cook are prominent in the sector.

Opportunities

• Medical Tourism: Growing due to world-class hospitals and skilled professionals, with M visas to support this market.
• Cruise Tourism: Leveraging 7,500 km coastline, India is developing cruise infrastructure.
• Rural Tourism: Offers economic and social benefits, with a focus on cultural and natural experiences.
• Eco-Tourism: Promoting biodiversity and conservation, with Thenmala in Kerala being the first planned eco-tourism destination.

Conclusion

India's tourism and hospitality industry is poised for significant growth, driven by government policies, infrastructure development, digital transformation, and diverse offerings. With increased foreign exchange earnings, employment opportunities, and tourist arrivals, the sector is playing a crucial role in the country's economic development. The introduction of e-visa, cruise terminals, and specialized tourism circuits further supports this growth, making India an attractive destination for both domestic and international tourists.