The Indian Travel and Tourism sector, which plays a significant role in the country’s economy, is facing a slow recovery, even after the pandemic. Once a booming industry, employing nearly 8 crore people directly and indirectly in 2019-20, the sector is yet to see a return of foreign tourists in large numbers. Industry experts and tourism bodies have urged the government to extend financial aid to revive the sector.
Fewer Foreign Tourists Are Visiting India Post-Pandemic
In the years just before the Covid-19 pandemic, India was a popular destination for foreign tourists. Official government figures show that 1.05 crore foreign tourists visited India in 2018, and this number increased to 1.09 crore in 2019. However, the pandemic brought international travel to a halt, and although 2023 was considered a recovery year, only 92.36 lakh foreign tourists came to India. Tourism industry insiders express concern that 2024 may also fall short of the pre-pandemic numbers.
This slow return of international visitors has deeply affected the Indian tourism sector. Experts believe the industry needs several more years to fully bounce back to pre-Covid levels unless immediate steps are taken to increase foreign tourist numbers.
More Indians Are Traveling Abroad Than Before
While foreign tourists are slow to return, outbound tourism is growing rapidly. More and more Indians are choosing to travel to international destinations. According to the Ministry of Tourism, 2.69 crore Indians traveled abroad in 2019, and by 2023, that number rose to 2.82 crores. A report by industry body FICCI estimates that India’s outbound tourism market could reach a staggering $55.4 billion in the coming years. This shows a steady annual growth rate of over 11%.
Tourism Industry Appeals for Government Help
The Indian Association of Tour Operators (IATO) has stepped forward to request government support to revive the inbound tourism industry. The association points out that promotional activities showcasing India’s tourist destinations in foreign markets have significantly reduced in recent years. According to IATO, the government has cut down the budget allocated for promoting Indian tourism abroad, and incentives that once supported tour operators have also been withdrawn.
IATO suggests that the government needs to reinstate these incentives and increase the budget for promoting India in key markets like the USA, UK, Canada, Germany, France, Australia, and Russia. This would help attract more foreign tourists, giving a much-needed boost to the sector.
The Employment and Economic Impact of the Tourism Industry
Tourism is a critical part of India’s economy. During the year 2019-20, the sector was responsible for generating 7.98 crore employment opportunities, both directly and indirectly, contributing to over 15% of the country’s total jobs. The sector also brought in substantial foreign exchange earnings, around $7 billion in 2020. Additionally, tourism contributed 5.19% to India’s GDP in the same period, making it a key player in the country’s economic framework.
Why Foreign Tourists Are Not Coming Back to India
IATO President Rajiv Mehra explains that while domestic tourism has seen a revival, outbound travel from India has grown rapidly post-pandemic. He attributes this trend to pent-up demand and the allure of foreign destinations offering visa fee waivers and other incentives. According to Mehra, unless India offers attractive deals and promotions for foreign tourists, they will continue to prefer other destinations.
Suggestions for the Government to Revive Tourism
To attract more foreign tourists, IATO suggests several measures that the government can implement:
- Increased Overseas Promotion: The government needs to allocate a bigger budget for overseas promotion. Both electronic and print advertisements should be used extensively in key source markets. Organizing roadshows and trade events abroad can also help raise awareness of India’s tourism potential.
- PLI Scheme for Tour Operators: The association recommends extending a Production Linked Incentive (PLI) scheme similar to the one in the manufacturing sector. This would help tour operators earn foreign exchange and use the funds to promote Indian destinations abroad.
- Visa Fee Waivers: IATO also suggests waiving visa fees for foreign tourists. Though the government may lose revenue from visa fees, the increase in tourist numbers would more than make up for the loss.
By adopting these steps, IATO believes the tourism sector can regain its pre-pandemic momentum, creating more jobs and contributing to the nation’s economic growth.
