Tourism likely to contribute 3.5 per cent to India’s GDP by 2027

The direct contribution of travel and tourism sector — which reflects the net value of output generated by hotels, airlines, travel agents, other passenger transportation services (excluding commuter services), and restaurants and leisure industries directly supported by tourists — was expected to rise 6.9 per cent YoY in 2017, suggests a FICCI-KPMG report. This accounts for 3.3 per cent of the country’s GDP, and is expected to form 3.5 per cent of it by 2027. In accordance with its GDP contribution, the sector contributes significantly to job creation. The sector directly accounts for 5.8 per cent of the total employment in India. Further, the Indian travel and tourism sector is expected to have attracted capital investment of Rs 2,387.7 billion (USD35.2 billion) in 2017 — accounting for 5.7 per cent of the total national investment.