Promoting Tourism in post Covid-19 Recovery phase

According to the World Travel and Tourism Council, India placed 10th out of 185 nations in terms of travel and tourism's overall contribution to GDP in 2019. The contribution of travel and tourism to GDP in 2019 was 6.8 percent of total GDP, or Rs. 13,68,100 crore (US$ 194.30 billion).

Market Structure

In terms of digital tools used for planning, booking, and experiencing a journey, India is the most technologically advanced traveller nation. The growing middle class in India, as well as increased disposable money, has aided the rise of both domestic and outbound tourism.

Foreign visitor arrivals (FTAs) in India were 10.93 million in 2019, representing a 3.5 percent year-on-year increase. Tourism FEEs grew 4.8 percent year on year to Rs. 1,94,881 crore (US$ 29.96 billion) in 2019. Arrivals through e-Tourist Visa grew by 23.6 percent year on year to 2.9 million in 2019. In 2020, FTAs fell by 75.5 percent year on year to 2.68 million, while arrivals by e-Tourist Visa fell by 67.2 percent year on year to 0.84 million. The e-Tourist Visa option was extended to nationals of 171 countries as of March 2021.

In April 2021, the United States (26.85 percent ) had the highest percentage share of FTAs, followed by Bangladesh (15.65 percent ), Afghanistan (6.92 percent ), the United Kingdom (5.87 percent ), Nepal (4.59 percent ), Canada (4.27 percent ), Iraq (2.99 percent ), Portugal (2.40 percent ), Germany (1.42 percent ), the Russian Federation (1.41 percent ), Maldives (1.39 percent ), France (1.33 percent ), Sudan (1.21 (1.02 percent ).

Bengaluru Airport (29.96 percent ) had the highest percentage share of FTAs in India in April 2021, followed by Mumbai Airport (17.48 percent ), Ahmedabad Airport (15.72 percent ), Delhi Airport (9.21 percent ), Cochin Airport (4.91 percent ), Chennai Airport (4.04 percent ), Hyderabad Airport (3.34 percent ), Lucknow Airport (2.40 percent ), Bhavnagar Seaport (2.37 percent ), Kolkata Airport (0.72 percent ).

FTAs were 376,083 between January 2021 and April 2021, compared to 2.35 million between January 2020 and April 2020, representing a -84.0 percent Y-o-Y decline owing to COVID-19.

International visitor visits are anticipated to exceed 30.5 billion by 2028, generating more than US$ 59 billion in revenue. Domestic visitors, on the other hand, are likely to fuel development in the aftermath of the epidemic. International hotel chains are expanding their presence in the country, and it will account for around 47 percent of India's tourism and hospitality sector by 2020, rising to 50 percent by 2022.

According to the Federation of Hotel & Restaurant Associations of India (FHRAI), the Indian hotel sector lost more than Rs. 1.30 lakh crore (US$ 17.81 billion) in income in FY21 as a result of the COVID-19 epidemic.

With an influx of US$ 45.7 billion in 2018, India ranked third internationally in terms of investment in travel and tourism, accounting for 5.9 percent of overall investment in the country.Between April 2000 and December 2020, the hotel and tourism sectors received a total of US$ 15.61 billion in FDI inflows.The Indian government estimates that by 2030-31, India would have a market of 1.2 million cruise tourists. Dream Hotel Group intends to invest around $300 million in the cruise business in India over the next 3-5 years.

Government Reforms the Tourism Sector:

The Indian government has recognised the country's tourist potential and has made various measures to make India a worldwide tourism centre.Mr. Prahlad Singh Patel, Union Minister of State for Tourism and Culture, will attend the G20 tourism ministers' meeting in May 2021 to work with member countries to protect tourism businesses and jobs, as well as to take initiatives to frame policy guidelines to support the sustainable and resilient recovery of travel and tourism.The Ministry of Road Transport and Highways has introduced the 'All India Tourist Vehicles Authorisation and Permit Rules, 2021,' under which a tourist vehicle operator can apply online for an All India Tourist Authorisation/Permit. This authorization will be granted within 30 days of the application's submission.The Ministry of Tourism, through the Government of India's Regional Office (East) in Kolkata, collaborated with the Eastern Himalayas Travel & Tour Operator Association (resource partner) and the IIAS School of Management (knowledge partner) to organise a ‘Incredible India Mega Homestay Development & Training' workshop in February 2021.Mr. Prahlad Singh Patel, Union Tourism and Culture Minister, unveiled a proposal on January 25, 2021, to create an international-level infrastructure in Kargil (Ladakh) to boost adventure tourism and winter sports.The Indian Railway Catering and Tourism Corporation (IRCTC) operates a series of Bharat Darshan tourist trains that transport passengers to different pilgrimages around the nation.On November 28, 2020, the Ministry of Tourism's ‘DekhoApnaDesh' webinar series titled ‘12 Months of Adventure Travel' is expected to showcase India as an adventure tourism destination.Mr. Uddhav Thackeray, Chief Minister of Maharashtra, will open the Balasaheb Thackeray Gorewada International Zoological Park in Nagpur on January 26, 2021. It is India's largest zoological park, spanning 564 hectares, and is anticipated to draw 2.5 million visitors each year.In October 2020, the Ministry of Tourism will launch SAATHI (System for Assessment, Awareness, and Training for the Hospitality Industry) in collaboration with the Quality Council of India (QCI). The project will successfully apply COVID-19-referenced guidelines/SOPs for the safe operation of hotels, restaurants, B&Bs, and other units.The Government of India has allocated Rs. 207.55 crore (US$ 29.70 million) towards the construction of tourism circuits under the PRASHAD plan in Budget 2020-21.The Odisha Tourism Development Corporation (OTDC) solicited proposals in July 2021 to operate shacks on the state's six major beaches.The Andhra Pradesh Tourist Authority invited players in the state's tourism sector to register with the Andhra Pradesh Tourism under the Tourism Trade Registration and Facilitation Guidelines 2020 in July 2021.The Odisha state government stated in June 2021 that it will give a cash package to the state's COVID-affected tourist sector.

Underneath Obstacles of India’s Tourism Sector

 The problem of Entry and exit. Despite the introduction of an e-visa option, tourists find the visa application procedure to be time-consuming. This procedure will become even more complex in the post-Covid future.

 The problem of Connectivity and infrastructure. Tourist visits to some heritage sites are hampered by infrastructural deficiencies and insufficient connection. Many tourist spots, like as Kangchenjunga, are still inaccessible.

The problem of Tourism circuits or segments. There are many tourist attractions in India, but only a few circuits. In addition, several tourist circuits that have been announced have yet to be executed on the ground. There is no coordination of campaigns. Tourist information centres are badly administered, making it difficult for both domestic and international travellers to easily acquire information.

 The problem of Skill Deficit. A significant issue to providing tourists with a world-class experience is a lack of appropriately qualified personnel in the tourism and hospitality sectors. A scarcity of multilingual trained guides, as well as a lack of local knowledge and comprehension of the advantages and obligations connected with the tourist business, hinder the sector's expansion.

Accomplishments of Government in Tourism Sector

An extra amount of Rs. 1,854.67 crore was sanctioned for new projects under the Swadesh Darshan initiative in 2019-20. Under the Swadesh Darshan and PRASHAD programmes, the Ministry of Tourism sanctioned 18 projects totaling Rs. 1,456 crore (US$ 211.35 million) to enhance and promote tourism in the region. The Sardar Vallabhbhai Patel Statue, popularly known as the ‘State of Unity,' was unveiled in October 2018, with a total income of Rs. 82.51 crore (US$ 11.81 million) earned through November 2019.

Conclusion

The tourism sector in India is expanding, and it has enormous potential for creating jobs and earning huge sums of foreign money, in addition to boosting the country's overall economic and social growth. However, more work must be done. Eco-tourism should be fostered so that tourism in India contributes to the preservation and sustainability of the variety of India's natural and cultural surroundings. Tourism in India should be developed in such a manner that it accommodates and entertains tourists in a way that is minimally invasive or damaging to the environment, while also sustaining and supporting the original cultures in the areas where it operates. Furthermore, because tourism is a multifaceted activity and primarily a service industry, all branches of the Central and State governments, the private sector, and non-profit organisations must become active partners in the effort to achieve sustainable growth in tourism if India is to become a world player in the tourism industry.

Pic Courtesy-Pankaj Jha

(The views expressed are those of the author and do not represent views of CESCUBE.)