Tourism Sector in India

Context (PIB): The Ministry of Tourism conducts training programme to strengthen nature tourism.

Significance of the Tourism Sector

Contribution to GDP: Contributes 7% to India’s GDP, making India 8^th largest country in terms of contribution to travel & tourism GDP.
Domestic travel market accounts for >85% of the sector’s contribution to GDP.
Employment generation: It accounts for about 15% of the total employment in the country.
Multiplier effect: It has ‘positive spillover effects’ in other sectors such as food & catering, Hotels & restaurants, real estate, transportation, etc.
Foreign exchange: It has a positive impact on the Balance of Payment as Tourism is the third largest foreign exchange earner for India.

Inclusive growth: The industry creates economic activity in fragile and remote rural, tribal & hill areas with relatively poor infrastructure.
Unlocking the value of cultural heritage and ecological sites.
National unity: Inter-cultural exchanges help in spreading new ideas, and facilitate building tolerance and acceptance for diversity which has helped build social capital in India.
Strategic Diplomacy tool: Act as an enabler of better bilateral relations, people-to-people connect, creating sustainable “dependency bonds” to ensure peace.

Lack of proper infrastructure such as air, rail, road, internet, hospitality, health/sanitation facilities at various tourist destinations.
Governance Challenges: Lack of guidelines for tourists, poorly regulated health & hygiene, ill- managed Tourist information centers, cumbersome visa regulations, etc.
Multiplicity of taxes across the entire industry value chain, from tour operators, transporters, airline industry to hotels, making tourism an expensive adventure in India.
Unskilled human resources: Lack of manpower, lack of relevant skills, for eg. limited number of multi-lingual trained guides.
Safety of tourists: Instances of crimes against tourists (especially Women) such as theft, duping, etc.
Low international tourist footfall: Only 1.2% share in the world’s International Tourist Arrivals (ITA).

Improve connectivity to remote tourist destinations to encourage exploration of lesser-known places.
Provide training programs for those involved in the tourism industry to enhance service quality.
Streamline regulatory processes to make it easier for businesses to operate in the tourism industry.
Enhance online presence through social media, travel websites, and virtual tours.

Digital Initiatives: e–Visa facility, Web-based E-Ticketing, National Integrated Database of Hospitality Industry (NIDHI), Swachh Paryatan Mobile App.
Draft National Strategy for 4 sub sectors: Rural, Sustainable, Health & Wellness, and MICE Tourism.
Boosting Tourist Place Attractiveness: Swadesh Darshan, PRASAD scheme, HRIDAY, Paryatan Parv etc.
Branding & marketing initiatives such as India Tourism Mart, Incredible India! & Athiti Devo Bhava.