IBEF印度旅游与酒店业分析11月英文20181137页1mb

Summary of Tourism & Hospitality in India

Core Content

The tourism and hospitality sector in India is a significant contributor to the economy, employment, and foreign exchange earnings. It is projected to grow at a steady pace over the next decade, driven by various government initiatives, policy support, and rising domestic and international demand.

Main Points

Economic Contribution

• The travel & tourism sector contributed Rs 5.94 trillion (US$ 91.27 billion) to India's GDP in 2017, with a CAGR of 7.23% expected between 2012 and 2028, reaching Rs 12.68 trillion (US$ 194.69 billion).
• Tourism is the 3rd largest foreign exchange earner in India, with FEEs of US$ 27.69 billion in 2017, growing to US$ 21.56 billion in January–September 2018.
• Tourism is expected to grow at a CAGR of 9.97% during 2006–2017 and 7.29% during 2012–2028.
• The direct contribution to GDP is expected to grow by 7.1% annually from 2018–2028.

Employment

• In 2017, the sector accounted for 8% of total employment opportunities, providing jobs to 41.6 million people.
• Employment is expected to rise to 52.3 million by 2028, growing at 2% annually.

Foreign Exchange Earnings

• Foreign exchange earnings (FEEs) from tourism grew by 20.8% in CY 2017 to US$ 27.69 billion.
• In January–September 2018, FEEs reached US$ 21.56 billion, with a 10.20% year-on-year increase.
• Arrivals through e-visa increased by 57.2% in CY 2017 and 47.90% in January–September 2018.

Tourism Growth Drivers

• Domestic expenditure on tourism is expected to grow from US$ 186.03 billion in 2017 to US$ 405.84 billion by 2028, at a CAGR of 7.29%.
• Medical tourism is a key growth segment, expected to reach US$ 9 billion by 2020.
• Adventure tourism is one of the most popular segments, supported by government initiatives and India's diverse geography.
• Eco-tourism and rural tourism are gaining traction, offering unique experiences and promoting sustainable development.

Government Initiatives

• The Swadesh Darshan scheme aims to develop 13 thematic circuits, including the Coastal Circuit and Himalayan Circuit, with Rs 1,250 crore allocated in 2018–19.
• The PRASAD scheme focuses on improving pilgrimage and spiritual tourism infrastructure, with Rs 5638.87 crore sanctioned since 2014–15.
• E-tourist visa has been extended to 163 countries, boosting foreign tourist arrivals.
• India Tourism Mart 2018 was organized to bring stakeholders together for business interactions.

Policy and Development

• The National Tourism Policy 2015 aims to position India as a global tourism destination.
• 100% FDI is allowed in tourism and hospitality under the automatic route.
• Project Mausam seeks to revive maritime cultural and economic ties with 39 Indian Ocean countries.
• Incredible India Mobile App launched in 2018 to enhance the tourist experience.

Sector Growth and Investment

• The tourism sector attracted US$ 47.8 billion in capital investments in 2017, expected to grow to US$ 95.3 billion by 2028.
• Government spending on tourism is projected to increase from US$ 2.81 billion in 2017 to US$ 5.85 billion in 2028.
• Low-cost carriers and online travel portals are transforming domestic tourism, while international flight operators are enhancing the appeal of India as a global destination.

Key Players

• Major hotel chains include Taj, Oberoi, ITC, Marriott, and Hilton.
• Online travel platforms like Yatra.com, Cleartrip.com, and MakeMyTrip are playing a crucial role in the sector.
• Visa reforms such as the M visa and e-visa have significantly improved tourist inflows.

Tourism Segments

• Leisure tourism dominates, contributing 94.6% of total tourism revenue in 2017, expected to grow to 432.3 billion USD by 2028.
• Business tourism is also rising, with revenue expected to increase from US$ 11.6 billion in 2017 to US$ 24.4 billion by 2028.
• Cruise tourism is a new and fast-growing segment, with the government planning to develop five cruise terminals and attract 1.2 million visitors by 2030–31.

Conclusion

India's tourism and hospitality sector is poised for substantial growth, supported by strong government initiatives, rising domestic and international demand, and a diverse range of tourism offerings. With increasing investments, improved visa processes, and a focus on niche segments such as medical, eco, and adventure tourism, the sector is expected to significantly boost the country's economy and employment in the coming years.