India to become 3rd largest tourism economy in 10 years
India, currently the seventh largest tourism economy, will move ahead four places and become the third largest in the next 10 years. A report by the World Travel & Tourism Council (WTTC) has said the sector's total contribution to the economy will more than double from Rs. 15L crore in 2017 to Rs. 32L crore in 2028. It will also add 1cr new jobs.
From 4.03cr jobs in 2016 to 5.23cr in 2028
According to the WTTC, the industry contributed Rs. 14L crore in 2016, or 9.6% of India's GDP. Domestic travel made up 88% of that. The same year, it supported 4.03cr jobs in the sector, or 9.3% of the country's jobs. It ranked second worldwide in terms of employment generated by tourism. WTTC says the number of jobs would rise further from 4.29cr in 2018 to 5.23cr in 2028.
What has worked for India?
Gloria Guevara, WTTC president, credited the growth to "some extremely proactive steps" by the government. One was the introduction of e-visas for 163 countries to ease foreign tourists' arrival, and "the launch of Incredible India 2.0 Campaign with major improvement in marketing and PR strategy." A new cruise port in Mumbai will help make India a global cruise destination, Guevara added.
What needs to be done to improve the sector?
But the country needs to do more to boost growth, Guevara added. Primary is infrastructure development. India needs to focus more on building world-class airports, sea ports, high-speed rail and roads. The Regional Connectivity Scheme to connect 350 unserved/underserved locations was a good move, they said. Priority should be "introducing a standard technological solution, modern technology and biometrics."
Reviewing GST in hospitality can help boost sector, says WTTC
WTTC did flag concerns about the sector concerning GST. "While the country-wide change to GST is a welcome move, the government could consider looking again at the level of GST in the hospitality sector to make it more competitive with other countries in the region."
