India’s inbound tourism to touch Rs 35 trillion by 2029

The recently released FICCI-Yes Bank Report at the Great India Travel Bazaar (GITB) in Jaipur, which is titled ‘India Inbound Tourism: Unlocking the Opportunities’ has underlined India as tourism powerhouse. It revealed that by 2029, Indian tourism sector is likely to grow at 6.7 per cent per annum to reach INR 35 trillion with 9.6 per cent of GDP. The report claims that the tourism sector in the country has generated USD 247.3 billion (INR 16.91 trillion) in 2018, with a growth of 6.7 per cent and accounting for 9.2 per cent of the total economy. Currently, it is the 8th largest country in terms of contribution to travel and tourism GDP and the largest market in South Asia. The report also highlights that the tourism sector generated 26.7 million jobs in 2018. By 2029, the sector is expected to provide employment to nearly 53 million people, directly and indirectly. Foreign Tourist Arrivals (FTAs) crossed 10 million in 2017 and the growth trend is expected to continue. Consumption by domestic tourists remains the key strength of the sector in India, much stronger than the global average. Growing disposable income, increase in new millennial tourists, new travel destinations as well as new themes of tourism will further propel the growth.

FICCI-Yes Bank report also states that the systematic growth, maintenance and sustainable development of tourism destinations as well as focus on promoting the emerging avenues of tourism will be essential towards unlocking its true potential. The growth in Indian travel and tourism sector has largely been driven by domestic tourists. Foreign tourists still account for a limited share as compared to some of the top-ranking countries. The government intends to achieve the ambitious target of 1 per cent foreign tourist arrivals in world’s international tourist arrivals by 2020 and increase it to 2 per cent by 2025.