According to Amitabh Kant, G20 Sherpa of India, this is India’s century when it comes to tourism.
The COVID-19 pandemic’s impact on global tourism now feels like a distant memory, especially in India. The World Travel & Tourism Council (WTTC) reports that the sector contributed a staggering ₹19.13 lakh crore to India’s GDP in 2023.
Employment in the industry has also seen a robust 10% growth, reaching nearly 42 million jobs—8% higher than pre-pandemic levels. By the end of 2024, an additional 2.45 million jobs are expected to be created, with 31% in direct roles like tour guides and hotel staff, and the rest in supporting industries such as logistics and IT.
According to Puneet Chhatwal, CEO of Taj Hotels Resorts & Palaces, hospitality is a jobs multiplicator.
Domestic tourism has played a pivotal role in this growth. WTTC data reveals that domestic travel spending between 2019 and 2023 has outpaced international spending. Yet, inbound international tourism is also on the rise, with foreign tourist arrivals between January and August 2024 up by 3.7% compared to the previous year. Foreign exchange revenues have also grown significantly, reaching ₹1.71 lakh crore—a 15.64% increase.
India’s diverse attractions, from the Himalayas to heritage sites like the Taj Mahal, continue to captivate global audiences. However, as Deep Kalra, Founder and Chairman of MakeMyTrip, points out, “Tourism’s big contribution in economic terms should be jobs and GDP, but the one we miss always is the soft power of tourism.” For example, despite the Taj Mahal’s global appeal, Agra struggles to retain tourists overnight, highlighting the need for more engaging activities.
While India’s tourism sector is booming, challenges remain. Logistical issues, overcrowding, and sometimes unwelcoming attitudes detract from the overall experience. There is an urgent need for investment in infrastructure, marketing, and streamlined tourism policies, including visa reforms. Competing nations like Thailand, Vietnam, and Saudi Arabia are setting benchmarks with proactive tourism strategies.
India’s tourism sector is on a growth trajectory. Experts forecast that by 2034, the industry’s GDP contribution could double to ₹43.25 lakh crore. While the momentum is strong, addressing infrastructural and experiential challenges could elevate tourism to become a cornerstone of India’s economic success story.
