Find Tourism and Travel partners in India

Overview

According to the World Travel and Tourism Council (WTTC) the travel and tourism industry in India contributed INR5,651bn to the economy in 2011, and supported 39,352,000 jobs (7.8% of total employment).  This placed it 126th in the world (out of 181 countries) with respect to the relative contribution of the industry to the economy, with 6.4% share of GDP, compared to a world average of 14% (WTTC 2011)).  The industry is also growing at a steady pace.  Key determinants of this development include the strong GDP growth, strengthening of ties with developed world and and the liberalisation of foreign investment.  In 2011 the country saw 6,290,000 tourist arrivals.  The largest proportion of visitors to the country come from Western Europe, making up 30.31% of arrivals in 2010, with the United Kingdom representing the largest segment of this.  North Americans constituted 20.32% in 2010, while the South Asian market represented 18.14%.  Visitor exports in 2011 generated INR801.4bn, constituting 3.8% of total exports.  The development and promotion of the industry is overseen by the Ministry of Tourism ministry, which for all intents and purposes is the the country’s tourism board.  It coordinates the efforts of state territory governments, encouraging private investment, strengthening promotional and marketing efforts and provides trained manpower resources.  The Association of Tourism Trade Organisations was established in 2003 in order to promote clarity and harmony in the Indian tourism trade.

Investment

Cultural tourism, historical tourism, ethnic tourism and adventure tourism are some of the major themes that form the industry. A new up-and-coming sector is medical tourism which as some reports say is growing at around 30% per annum and predicted to be worth $2 billion by 2012 (2011). 

The Ministry of Tourism is focused on improving the quality of the tourism infrastructure in the country.  Part of this is the development of infrastructure in rural areas in order to promote rural tourism.  The aim is to showcase aspects of rural life, art, culture and heritage, encouraging local crafts and textiles at the same time.  The shifting trend towards rural tourism is prompted by increasing levels of awareness, growing interest in heritage and culture, improved accessibility and environmental consciousness.  The growth in this sector can be harnessed as a strategy for rural development.  Additionally, in recent years there has been a notable trend towards travel to ecotourism destinations like National Parks and Wildlife Sanctuaries and the Ministry is keen to promote and develop this sector.

Investment in travel and tourism was INR1,253.9bn in 2011, constituting 5.1% of total investment.  This was expected to rise by 12.3% in 2012, and then by 7.5% pa over the following ten years to INR2,903.9bn by 2022.