Tag Archives: Yes Bank

Travel and tourism is expected to provide employment to nearly 53 million people in India, directly and indirectly, by 2029, as per a latest report on inbound tourism commissioned by FICCI and Yes Bank. The sector has been a key source of employment as well, directly accounting for 26.7 million jobs in 2018. Further, the total jobs from indirect and induced activity stood at 42.7 million. The number is estimated to reach 43.7 million in 2019, accounting for 8.1% of the total employment in the country.

In a recent forecast by Boeing, Indian airlines are expected to order as many as 2,100 planes worth US$290 billion over the next 20 years. As per a study by FICCI-Yes Bank report titled ‘Opportunities and Financing Outlook for Aviation Sector’, this increase is led by strong passenger demand, low fuel prices, high load factor, strong local currency and strong economic growth. Indian carriers operated 496 aircraft in FY17 up from 381 in FY08. At the end of FY17, Indian airlines had ordered more than 800 planes. Boeing projects a worldwide demand for 41,030 new airplanes over the next 20 years, with India carriers needing more than 5.1 percent of the total global demand.

Globally, medical tourism market is estimated to touch a market value of USD 40 bn by 2020 and Indian medical tourism industry is expected to touch USD 09 billion by 2020, according to FICCI-Yes Bank Knowledge Paper titled ‘Tourism Infrastructure Investments: Leveraging Partnerships for Exponential Growth’. India is fast developing into a medical and wellness tourism hub of Asia owing to its superior quality healthcare services offered at affordable prices coupled with a dedicated policy framework of government to promote medical tourism. Rising disposable incomes, self-awareness on personal well being and increased air connectivity has encouraged market for wellness services, tourists seeking specialised medical treatments, mainly Ayurvedic, spa and other therapies look forward to India as preferred destination.

The Indian hotel market is projected to grow to around USD 13 bn by 2020, according to FICCI-Yes Bank Knowledge Paper titled ‘Tourism Infrastructure Investments: Leveraging Partnerships for Exponential Growth’. Further, as per World Travel & Tourism Council’s 2018 report, the industry contribution to capital investment in India was Rs 2706.1 bn in 2017 and is projected to grow 6.7 per cent per annum in next 10 years to Rs 5546.3 bn by 2028, higher than the global average of 4.5 per cent. Despite increase in private sector investment, the Indian hotel industry observed a decline in average room rate and room occupancy in 2016-17 which is largely attributed to lower participation of hotels in the five-star deluxe and five-star categories in India.

Highlighting the foremost areas of developing a robust tourism infrastructure and the current scenario of tourism in India, FICCI in association with Yes Bank has released a knowledge report titled ‘Tourism Infrastructure Investments: Leveraging Partnerships for Exponential Growth’, during the Tourism Investors Meet 2018 held in New Delhi. The It also features facts and figures pertaining to the tourism sector and suggests recommendations to establish India as a global tourism hotspot. Usha Padhee, Joint Secretary, Ministry of Civil Aviation, Government of India, unveiled the report during the meet along with Bhupesh Rathore, President & Head – Strategic Government Advisory, Yes Bank; Dr Jyotsana Suri, Past President, FICCI & Chairperson, FICCI Tourism Committee; Dipak Deva, Co-chairman, FICCI Tourism Committee and Rahul Chakravarty, Consultant – Tourism, FICCI. Rathore also gave a presentation focusing on the potential and development of tourism across various sectors of the industry.

Travel and tourism investment is expected to rise by 6.7 per cent per annum over the next 10 years to Rs 5,546.3 billion in 2028, according to FICCI-Yes Bank Knowledge Paper titled ‘Tourism Infrastructure Investments- Leveraging Partnerships for Exponential Growth’. Usha Padhee, Joint Secretary, Ministry of Civil Aviation, said that the tourism and civil aviation ministries are engaging continuously to identify solutions and implement them for the growth of both the sectors. “The way forward is a focused approach for evolving tourist places under the aviation connectivity scheme and expanding existing routes under UDAN scheme including helicopter routes in hilly and north-eastern regions. This will provide good infrastructural support to the tourism sector,” said Padhee. She also added that the Ministry of Civil Aviation is working to remove bottlenecks in remote and regional areas by providing proper navigation means, technology, better security and safety. Dr Jyotsna Suri, Past President, FICCI & Chair, FICCI Tourism Committee and CMD, Lalit Suri Hospitality Group, in her address said that increasing connectivity will boost tourism, adding that ‘one flight per day to Khajuraho will build the demand eventually’. Dipak Deva, Co-Chair, FICCI Tourism Committee and MD, SITA, TCI & Distant Frontiers also presented his views on the growth of tourism in the country at the 4th Tourism Investors Meet held in Delhi.

Foreign Exchange Earnings (FEEs) during 2017 were USD 27,742 mn with a growth of 17.0 per cent over 2016, according to a recent report on inbound tourism by FICCI and Yes Bank. This growth trend is dependent on many external factors including exchange rate and socio–political scenario. However, despite global undulations, FEEs have consistently contributed a significant share to the tourism GDP of India. The rising flow of Foreign Tourist Arrivals (FTAs) is clearly a function of the stellar growth performance of emerging tourism trends like MiCE along with spiritual travel and medical tourism. Furthermore, it goes without saying that FTAs have been able to garner considerable resources for the country and started contributing significantly to the economy.

Foreign Exchange Earnings (FEEs) during 2017 were USD 27,742 mn with a growth of 17.0 per cent over 2016, according to a latest FICCI-Yes Bank Report. This growth trend is dependent on many external factors including exchange rate and socio–political scenario, however, despite global undulations, FEEs have consistently contributed a significant share to the Tourism GDP of India. The rising flow of Foreign Tourist Arrivals (FTAs) is clearly a function of the stellar growth performance of emerging tourism trends like MiCE along with spiritual travel and medical tourism. Furthermore, it goes without saying that FTAs have been able to garner considerable resources for the country and started contributing significantly to the economy. Foreign tourists tend to spend more in India than almost any other country worldwide due to its size as well as diversity of culture and geography. These are positive signs for the industry, and indicate significant potential going forward.