International Tourism Mart: Tourism Industry in India

International Tourism Mart: Tourism Industry in India

Tourism industry
  • Tourism in India is important for the country’s economy and is growing rapidly. The World Travel and Tourism Council calculated that tourism 9.4% of India’s GDP in 2017 and supported 8% of its total employment.
  • According to “Travel Tourism Economic Impact 2018 India” report by World Travel and Tourism Council the sector is expected to grow at an annual rate of 6.9% to9.9% of GDP by 2028.
  • Sudip Bandyopadhyay committee observed that the foreign exchange earnings from tourism were around USD 21.07 billion during 2015
  • The Travel and Tourism Competitiveness Report for the year 2017, ranked India 40th out of 136 countries.
  • It mentions that India has goodprice competitiveness, air transport, ground transport infrastructure.
  • However, some other aspects of its tourism infrastructure remain somewhat underdeveloped. The nation has very few hotel rooms per capita by international comparison and low ATM penetration.

Issues related the industry

  • Lack of infrastructure: Tourism-associated economic and social infrastructure – hotels, connectivity, human resources, hygiene, health facilities, etc are largely under developed in India.
  • Safety and Security issues: it is a major roadblock to the tourism development. Attacks on foreign nationals, especially on women, raise questions about India’s ability to welcome tourists from far away countries.
  • Connectivity issues:Majority of the tourist spots in the country are not easily accessible. This is because of high costs of travelling, poor connectivity and a series of permissions required for various reasons.
  • Fluctuations in currency exchange rates: this is creating fluctuations in the number of foreign tourists visiting the country.
  • Seasonal dependence of the market is reducing the employability of the sector.
  • Complex taxation system in the country is having a detrimental effect on the sector.


Location: Thiruvananthapuram, Kerala, India

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