By Prashansa Srivastava
The mid-year Economic Survey undertaken to assess the overall growth and outlook of the country elaborated on the current untapped potential of the Indian travel and tourism industry. It reported on the need to take more steps to make the country a major tourist destination and expand earnings from the sector.
India’s ranking in the World Economic Forums ‘Travel and Tourism Competitiveness Index 2017’ has improved by 12 places and is now at the 40th position globally among 136 countries. The factors that have contributed to this jump in the ranking include the advantage of price competitiveness and international openness which is up by 14 places reflecting the implementation of both visas on arrival and e-visa.
Indias performance on a global scale
Foreign tourist arrivals have been on an upward trajectory at least since the turn of the century. India hosted 8.89 million tourists last year. However, when compared with countries such as France with 84.5 million visitors which topped the list, US (77.5 million) was second, followed by Spain (68.2 million), China (56.9 million) Indias performance leaves much to be desired. Indias foreign exchange earning follows the same pattern. India earned more than $23 billion in revenue from international tourism. However, in the same year, the US earned $204.5 billion from international tourists and China $114.1 billion.
Interestingly, an average tourist spends about the same or more money in India as compared to the US or China, preferring to stay for longer durations in India. This further highlights the missed opportunities in the tourism sector, with Indian revenue suffering not due to the unwillingness of travellers to spend but due to the inadequate number of tourists.
Pitfalls plaguing tourism industry
India, with its rich and varied natural resources and a unique intangible cultural heritage, is a prime candidate to lead Asia in travel and tourism. However, long standing infrastructure gaps persist which hinder the influx of foreign travellers. The dismal quality of roads and improper health and hygiene discourage travellers. There is a dire need to improve and expand road connectivity and upgrade wayside amenities. The tourism industry is also weighed down by the problem of lack of skilled workers to fill all the positions to cater to international visitors.
The collapsing law enforcement system for travellers and the unsettling safety and security situation are a roadblock to the growth of Indian tourism. Safety and security are of paramount importance to tourists, the increase in crime and violence, especially against women, is a deterrent to many. With a rise in the number of women travellers both in terms of domestic as well as foreign tourists, ensuring their safety should be a fundamental concern.
In order to become a tourism friendly economy, India needs to create a provision of factors and policies that enable the sustainable development of the travel and tourism sector, which in turn, contributes to the development and competitiveness of a country.
Time to make the best of what we have
If the significant opportunities presented by the Indian travel and tourism sector presents are reaped, India stands to gain from a multitude of socio-economic benefits. Tourism provides monetary incentives for the development of many local crafts and culture, positively impacting the income of the local artisans and artists. It also helps in preserving and sustaining the diversity of India’s natural and cultural environments.
A large amount of foreign exchange that can be earned through tourism will aid in stabilizing the countrys economic development. Most importantly, expansion of tourism and tourist-related services will create a vast array of employment opportunities. The flow of money generated by tourist spending multiplies as it passes through various sections of the economy (known as the multiplier effect) helping in driving growth, reducing poverty and fostering development. The underdeveloped regions of the country can greatly benefit from such development. Many of the economically backward regions contain areas of high scenic beauty and cultural attractions.
Indias size and massive natural, geographic, cultural and artistic diversity offers enormous opportunities for the travel and tourism industry. If the potential is utilized the country stands to gain and can emerge as a giant in the Asian tourism sphere.
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