Tourism Sector in India: Evolution, Significance & Challenges

Recently, the Ministry of Defence, in collaboration with the Ministry of Tourism and the Indian Army, launched the “Bharat Ranbhoomi Darshan” app to promote battlefield tourism. This initiative aims to showcase India’s historical and military heritage and enhance the tourist experience.
The tourism sector in India is targeting 100 million foreign visitors annually by 2047. To achieve this ambitious goal, it is crucial to enhance infrastructure and prepare local communities to ensure a seamless and enriching experience for tourists.

Evolution of the Indian Tourism Sector

Pre-1990: Early Foundations

1982: The Indian government announced its National Tourism Policy, laying the groundwork for the sector’s development.
1988: A comprehensive plan was formulated to promote tourism across India.

1990-2000: The Rise of Tourism as an Industry

State-Level Recognition: Tourism was declared an industry in several states.
Public-Private Partnerships (PPP): Emphasis was placed on fostering growth through PPP.
Hotel Industry Growth: Policies supported the development of the hotel industry.

2000-2005: Infrastructure and Technological Advancements

2002: A National Policy on Tourism was launched, focusing on infrastructure development.
Technological Boom: The rise of online travel portals and low-cost carrier airlines boosted domestic tourism.

2015 Onwards: Global Recognition and Digital Innovation

Marketing Initiatives: Government launched campaigns to position India as a top tourism destination.
e-Tourist Visa: Introduced in 2014, enabling online visa applications. By 2018, 2.93 million foreign tourists arrived under this program, marking a 23.6% growth.
Global Recognition: In 2018, India secured the 3rd position in global tourism rankings.

Beyond Pandemic: Revival and Adaptation

Revenge Travel: Post-pandemic, revenge travel emerged as a major trend.
Government Initiatives: Active promotion of tourism to revive the economy.
Hotel Industry Strategy: Hotels focused on increasing occupancy rates through lower rates.

Tourism in India: Growth, Contributions and Global Position

Tourism’s Contribution to GDP: In the financial year 2022-23, the tourism sector contributed 5% to India’s GDP, a substantial increase from 1.75% in 2021-22.
Foreign Tourist Arrivals: In 2023, India recorded 9.24 million foreign tourist arrivals, marking a 43.5% increase compared to 6.44 million in 2022.
Tourism Revenue: Foreign exchange earnings from tourism stood at ₹2.3 lakh crore in 2023, reflecting a 65% growth from ₹1.39 lakh crore in 2022.
FDI Policy: 100% Foreign Direct Investment (FDI) is allowed in tourism infrastructure, including hotels, resorts, and recreational facilities.
Global Ranking: India ranked 6^th in Travel & Tourism’s GDP contribution in 2022 and 54^th out of 117 countries in the 2021 Global Travel and Tourism Development Index.

Significance of Tourism Sector in India

Boost Global Tourism Share: India seeks to increase its share of global tourism receipts, contributing to the national economy.
Multiplier Effect: Tourism stimulates growth in allied sectors such as hospitality, transport, and retail, leading to increased income generation, infrastructure development, & regional economic growth.
Job Creation: Tourism is expected to create thousands of jobs at various skill levels, improving livelihoods and economic opportunities.
Promote India’s Diversity: Showcase India’s rich cultural, historical, and natural heritage to attract global visitors and create a unique and enriching tourism experience.
Enhance Global Image: Improve India’s global reputation by offering tourists a safe, enjoyable, and memorable experience, making the country one of the top tourist destinations globally.

Challenges to the Tourism Sector in India

Ecological Damage: Tourism activities contribute to environmental degradation, with increased waste and pollution harming biodiversity.
Infrastructure Issues: Inadequate infrastructure in remote areas and the lack of global-standard amenities limit tourism growth.
Seasonal Dependency and High Costs: Regions with seasonal tourism face low off-season revenue, impacting year-round growth. Coupled with high taxes and expensive services, India has become an expensive destination, with 18% GST on tourism-related services.
Crowd Management Challenges: Large events like the Maha Kumbh Mela, attracting up to 400 million visitors, require extensive planning and resources to ensure safety and order.
Exchange Rate Volatility: A weak rupee impacts foreign tourists’ spending power, with the currency weakening by 3% in 2023.
Skilled Manpower Shortage: Only 30% of tour guides are trained, and many lack proficiency in English, affecting the international visitor experience.
Safety Concerns: Natural disasters, such as the 2013 Kedarnath cloudburst, pose safety risks, impacting the reputation of adventure tourism.
Wildlife Tourism Risks: Increased wildlife tourism strains vulnerable species & disrupts natural habitats.

Swadesh Darshan Scheme: Assists State Governments in developing infrastructure for 13 theme-based tourism circuits.
Tourist Circuit for Northeastern States: ₹1,200 crores allocated for eight Northeastern states under Swadesh Darshan.
Swadesh Darshan and PRASHAD Schemes: Promote specialised tourism markets like wildlife, adventure, wellness, and religious travel.
Swachh Bharat Movement: Cleaning campaign to maintain the sanctity of national monuments.
All India Permit Rules 2021: Enables online application for All India Tourist Authorisation/Permit.
Dekho Apna Desh Initiative: Webinar series to promote India as a premier tourism destination.
Swadesh Darshan 2.0 Scheme: Revamped to develop sustainable and responsible tourism destinations nationwide.
Promoting Battlefield Tourism: Integrating initiatives like the Bharat Ranbhoomi Darshan app to highlight India’s military heritage, enhancing cultural and adventure tourism in border regions.
Thematic Tourism Promotion Drive: Promotes wellness, culinary, and eco-tourism to diversify tourism offerings globally.
Other Initiatives: e-Visa Facility, GST Reduction, RCS-UDAN, IITF Certification Program, NIDHI+, etc,.

As Prime Minister Modi asserts, “Tourism has the potential to bring prosperity to the lives of many.” By strategically investing in infrastructure and sustainable practices, India can harness this potential to drive economic growth and enhance livelihoods across the nation.

Reference: Livemint | The Hindu

PMF IAS Pathfinder for Mains – Question 49

Q. India aims to attract 100 million tourists by 2047. Evaluate the key enablers for achieving this vision and suggest a comprehensive roadmap to position India as a leading global tourism destination. (250 Words) (15 Marks)

Approach

Introduction: Write a brief introduction about the goal and importance of tourism in India.
Body: Discuss the key enablers for achieving the 2047 vision and also discuss the roadmap to achieve it.
Conclusion: Write a constructive conclusion highlighting the need for a holistic approach.