Industry expects to contribute US$106.9 billion

In order to project India as a 365-day tourist destination globally, the Ministry of Tourism is exploring newer destinations for the industry, direct contribution of which is expected to grow to US$106.9 billion to the GDP in 2019, up from US$98 billion in 2018.

The Ministry is also actively promoting under-developed tourism destinations through development of infrastructure and better connectivity, according to a report by ResearchAndMarkets.

This is expected to create growth opportunities for different stakeholders such as hotels, restaurants, tour operators, etc, said the report “Outlook of the Tourism Industry in India, 2019”.

The Travel services and Hotel segments are expected to drive growth of the industry in 2019, growing at a rate of 12% and 13.2%, respectively,
according to the report released on 30 April 2019.

India has been promoting tourism under the Incredible India 2.0 campaign and has been conducting road shows and other marketing campaigns, while the states have also been promoting tourism state-wise under separate campaigns, similar to the Incredible India campaign.

Also, due to the continuous growth in number of tourists from both domestic and international markets, and an increasing demand for unique experiences by different tourist segments, especially millennial tourists, the industry is seeing a shift from destination-based tourism to experience-based tourism and development of niche tourism products and services for tourists.

A few key tourism offerings that majorly attract tourists to India are medical tourism, business tourism, adventure tourism, spiritual tourism, heritage tourism, cultural tourism, eco-tourism and rural tourism.

This has been possible due to India’s diverse geography and cultural heritage. Amongst the states, Tamil Nadu, Maharashtra, and Uttar Pradesh have been attracting a large number of tourists compared to the other states.

The Government also plans to develop tourism infrastructure across the country to provide a better tourism experience for tourists. Schemes such as Swadesh Darshan, PRASHAD, and Adopt a Heritage are expected to gain momentum and boost overall tourism growth.

Increasing Foreign Tourist Arrivals and domestic tourists, rise in household incomes, fast-growing internet and smartphone penetration are some factors that encourage growth of the industry.

Tourists are likely to demand more personalization and customization, especially in the case of millennials, said the report.

This is expected to increase the tourism industry’s reliance on technology start-ups and emerging technologies such as the AR, VR, Artificial Intelligence, and IoT which will eventually disrupt the tourism landscape, it said.

Enseo, Marriott and Starwood Hotels among the leading players in the industry. fiinews.com