India’s travel market expected to reach $125 billion by FY27: FICCI

NEW DELHI: India’s travel market is expected to reach $125 billion by FY27 from an estimated $75 billion in FY20. India’s tourism industry in 2020 accounted for 31.8 million jobs, which are expected to reach 53 million jobs by 2029 and international tourist arrivals are expected to reach 30.5 billion by 2028. All these conclusions are drawn from a new report by the chamber of industry Ficci.

According to the latest UNWTO World Tourism Barometer, quoted by the Ficci report, international tourism recorded a 182% year-on-year increase from January to March, with destinations around the world welcoming around 117 million international arrivals, compared to 41 million in the first quarter of 2021.

India is a big market for travel and tourism. It offers a diverse portfolio of niche tourism products – cruises, adventure, medical, wellness, sports, MICE, ecotourism, cinema, rural and religious tourism. India has been recognized as a spiritual tourism destination for both domestic and international tourists. Tourism is an important source of foreign exchange in India, as in many other countries. Foreign exchange earnings from 2016 to 2019 grew at a CAGR of 7% but fell in 2020 due to the coronavirus pandemic.

The growing influence of the tourism sector as an economic engine and its potential as a tool for development are undeniable. The tourism sector not only leads to economic growth, but also improves people’s quality of life through its ability to create large-scale jobs of various types, supports environmental protection, promotes diverse cultural heritage and strengthens peace in the world.

Before the onset of the pandemic, India’s travel and tourism industry was expected to grow at an annual growth rate of 6.9% from 2019 to 2028 to reach $460 billion, or about 9.9% of India’s GDP. India in 2028.

The total contribution of travel and tourism to GDP in India in 2019 was 7% of the total economy or 15,792 billion. This figure has dropped to 4.3% or 9.167 billion in 2020. In 2021, the figure jumped to 5.8% or 13,161 billion.

The industry accounted for 40.10 million jobs in 2019, which fell to 29.14 million in 2020 but increased again to 32.10 million in 2021.

However, spending by international visitors fell by 2532.6 billion in 2019 for 653.5 billion in 2021. Domestic tourism, however, remained constant from 2019 to 2021. The contribution increased from approximately 11,515 billion in 2019 for 7.170 billion in 2020. This figure has increased to 11,166.6 billion in 2021. The Ficci report says it took this data from “WTTC 2022 Annual Research: Key Highlights”.

The pandemic has shed light on the structural barriers preventing India’s tourism industry from reaching its full potential. Seasonality is the most important factor, affecting the ability of tourism businesses to retain staff year-round and reducing economic productivity.

Market fragmentation, which can inhibit coordination across the sector, and lack of information are other obstacles.

To improve travel mobility, Usha Padhee, joint secretary of the Civil Aviation Ministry, said the government is working to increase the number of airports in the country to 200 by 2024 from the current 140. . She said aviation and tourism complement the sectors. “Air connectivity needs to go hand in hand with what the tourism sector is doing,” she added.

G Kamala Vardhan Rao, Director General of the Ministry of Tourism, said it is necessary to develop and introduce new tourist destinations to attract more travelers from domestic and international countries. “We must work collectively to ensure that new destinations have basic infrastructure,” he said at the “7th National Meeting of Tourism Investors 2022”, organized by the federation.

“India is going to host the G-20 meetings next year and they will be held in different states and cities. States are also investing heavily in building infrastructure. I urge investors to come forward and invest in the hospitality industry,” he added.

Jyotsna Suri, Chairperson of FICCI Travel, Tourism and Hospitality Committee and CMD, The Lalit Suri Hospitality Group, said India needs robust domestic tourism. “We need to go beyond uncharted areas. Connectivity is one of the biggest gaps that we need to improve,” she added.

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.