Features of the Tourism and Hospitality Industry in India [2018]

Features of the Tourism and Hospitality Industry in India [2018]

2018 seems to be the year for tourism and hospitality in India. Not only are the trends in its favour, but even the numbers and investments say so. According to IBEF (India Brand Equity Foundation), a trust established by the Department of Commerce, Ministry of Commerce and Industry, and the Government of India, below are a few of the features of India’s Tourism and Hospitality industry.

  • Foreign tourist arrivals expected to increase at a CAGR of 7 per cent over 2005–25.
  • By 2020, medical tourism industry of India is expected to touch US$ 9 billion.
  • 9 million foreign tourists visited India in 2016, witnessing increase of 11 per cent from 2015.
  • The luxury travel market in India registered a growth rate of 12.8 per cent in 2016, the highest in comparison with any other BRIC country.
  • The direct contribution of travel & tourism to GDP is expected to reach US$ 148.2 billion by 2027.
  • The sector’s total contribution to GDP stood at US$ 208.9 billion (9.6 per cent of GDP) in 2016 and is forecast to rise by 6.7 per cent in 2017, and to rise by 6.7 per cent pa to Rs 28,491.8 billion (US$ 424.5 billion), 10 per cent of GDP in 2027.
  • In 2017, India is expected to attract 9.45 million international tourist arrivals and by 2027, it is expected to reach 17.3 million.
  • During January-November 2017, India has earned foreign exchange of US$ 24.655 billion from tourism.
  • Domestic travel revenues are estimated at US$ 183.48 billion in 2016 are anticipated to further increase to US$ 203.3 billion by 2026.
  • Revenues earned from foreign visitors are estimated at US$ 25.02 billion in 2016 & are projected to further increase to US$ 40.11 billion by 2026.
  • Leisure travel spending reached Rs 12,079 billion (US$ 179.7 billion) in 2016 and is expected to reach Rs 12,910 billion (US$ 196.41) billion in 2017 and US$ 386.3 billion by 2027.
  • Business travel revenues were Rs 689 billion (US$ 10.25 billion) in 2016 & are projected to increase to Rs 726.6 billion (US$ 11.1) billion by 2017 and US$ 23.3 billion by 2027.
  • Domestic expenditure on tourism has grown significantly. In 2016, the market reached Rs 11,239 billion (US$ 167.2 billion), representing growth at a CAGR of 13 per cent during 2008–16, which is anticipated to increase to Rs 12,024 billion (US$ 182.9 billion) in 2017 and is expected to reach Rs 23,943 billion (US$ 364.3) billion by 2027.
  • India’s tourism sector attracted capital investments of Rs 2,284.9 billion which was 5.7 per cent of total investment (US$ 34 billion) received during 2016. They are expected to grow by 4.5 per cent in 2017 and by 5.7 per cent over the upcoming 10 years.
  • Government’s collective spending on tourism & hospitality sector, in 2016 stood at around US$ 2.4 billion.
  • The government’s collective spending is expected to increase to Rs 161.9 billion (US$ 2.46) billion in 2017 and to Rs 320.1 billion (US$ 4.87 billion) by 2027.
  • In December 2017, the World Bank agreed to provide US$ 40 million for the development of tourism facilities in Uttar Pradesh.
  • International hotel chains are increasing their presence in the country, as it will account for around 47 per cent share in the Tourism & Hospitality sector of India by 2020 & 50 per cent by 2022, increasing from 44 per cent in 2016.
  • Berggruen Hotels is planning to add around 20 properties under its midmarket segment ‘Keys Hotels’ brand across India, by 2018.
  • Hilton plans to add 18 hotels pan India by 2021, along with 15 operational hotels under its brands namely Hampton, Hilton Garden Inn, Conrad, Hilton Hotels & Resorts & DoubleTree by Hilton.
  • In 2017, Marriott International plans to open 30 new luxury hotels. As of November 2017, the company operated 93 hotels in India. Capital investments in the tourism sector (Visakhapatnam port traffic (million tonnes) US$ billion).

These significant developments signal a step forward for the Tourism and Hospitality industry in India. If you wish to be a part of this journey, then check out the BBA in Tourism and Hospitality Management program  from MBA ESG.

Author: Abhishek

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