Tourism – Will
This make India The Richest Country In The World
What is the WORLD market for tourism. This questions haunts many .
Well the answer is - :
:Approximately
1.31 trillion U.S. dollars
In 2021, the market size of tourism worldwide was estimated at
approximately 1.31 trillion U.S. dollars.
The
Largest market Of Tourism - ::
It might sound very astonishing but then that is the truth. No other country in the world possesses that
kind of any potential, and that the world’s largest market of tourism exists
here at India. Yet India in so very poor when it comes to place her at the
topmost saddle of tourism. What makes India the largest country of the world of
tourism?.It is so intriguing to find that despite having the potential for
being the WORLD NUMBER ONE country in the matter of tourism, India is placed at
the 34th position when it boils down to her place of merit in the
world of tourism.
India is a large market for travel and tourism. It offers a
diverse portfolio of niche tourism products - cruises, adventure, medical,
wellness, sports, MICE, eco-tourism, film, rural and religious tourism.
India has been recognized as a destination for spiritual tourism
for domestic and international tourists. In his Independence speech from Red
Fort, Prime Minister Mr. Narendra Modi urged people to visit 15 domestic
tourist destinations in India by 2022 to promote tourism.
India
ranked 34 in the Travel & Tourism :: Competitiveness Report 2019 published
by the World Economic Forum.
India to the dismay of the entire world, that inspite of
possessing the world best potential for tourism that could stand number ONE in
the world, India is placed at the number 34th, however it stands the
FIRST amongst all the nation to have created the job base for tourism.
In WTTC’s Economic Impact 2019 report, India’s Travel &
Tourism GDP contribution grew by 4.9%,
which was the third highest after China and Philippines. Additionally, the
report also highlights that between 2014-2019, India witnessed the strongest
growth in the number of jobs created (6.36
million), ie , 63 Lakhs and
Sixty Thousands jobs, in the tourism
industry ,followed by China (5.47 million) and the Philippines (2.53 million).
Tourism
Industry In India :: A Roadmap
The Ministry of Tourism has created a policy for development and
promotion of caravan and caravan camping parks. On January 25, 2021, Union
Tourism and Culture Minister Mr. Prahlad Singh Patel announced plan to develop
an international-level infrastructure in Kargil (Ladakh) to promote adventure
tourism and winter sports.
The Ministry of Road Transport and Highways has introduced a new
scheme called or known as, ‘’ All India Tourist Vehicles
Authorisation and Permit Rules, 2021 ’’, in which a tourist vehicle
operator can register online for All India Tourist Authorisation/Permit. This
permit will be issued within 30 days of submitting the application.
In 2020, the travel & tourism industry’s contribution to the
GDP was US$ 121.9 billion;
this is expected to reach US$ 512
billion by 2028. In India, the industry’s direct contribution to the GDP
is expected to record an annual growth rate of 10.35% between 2019 and 2028.
The travel market in India is projected to reach US$ 125 billion by FY27 from an
estimated US$ 75 billion in
FY20.
The Indian airline travel market was estimated at ~US$ 20 billion
and is projected to double in size by FY27 due to improving airport
infrastructure and growing access to passports.
There has been an increase in the demand for luxury stay among
Indian consumers, due to rising consumer spend. In line with this, key players
are expanding their presence to cater to this demand.
In October 2021, firms such as Accor and Wyndham Hotels and
Resorts announced to add new hotels and properties in India to expand footprint
in the country.
OYO estimates India to present a US$ 26 billion opportunity by
2030. To further strengthen its position in India, in October 2021, the company
filed its draft red herring prospectus (DRHP) for an initial public offering
(IPO) of Rs. 8,430 crore (US$ 1.2 billion) with the Securities and Exchange Board
of India (SEBI).
The Prospect
Of Indian Tourism – The “ MOUTH ” That It cares For ::
In 2020, the Indian tourism sector accounted for 31.8 million
jobs, which was 7.3% of the
total employment in the country. By 2029,
it is expected to account for about 53
million jobs.
International Tourists
arrival is expected to reach 30.5
billion by 2028. e-Visa facility was offered to 171 countries as of March 2021. The government introduced a
scheme to boost the tourism sector by providing one-month free tourist visa to
5 lakh tourists until March 31, 2022.
Certain Statistics
Relating To Indian Tourism - ::
During 2019, foreign tourist arrivals (FTAs) in India stood at
10.89 million, achieving a growth rate of 3.20%. During 2019, FEEs from tourism
increased 4.8% to Rs. 1,94,881 crore (US$ 29.96 billion). In 2019, arrivals
through e-Tourist Visa increased by 23.6% to 2.9 million. In 2020, FTAs
decreased by 75.5% to 2.68 million and arrivals through e-Tourist Visa
(Jan-Nov) decreased by 67.2% to 0.84 million.
In April 2021, the percentage share of FTAs was highest from USA
(26.85%), followed by Bangladesh (15.65%), Afghanistan (6.92%), UK (5.87%),
Nepal (4.59%), Canada (4.27%), Iraq (2.99%), Portugal (2.40%), Germany (1.42%),
Russian Fed (1.41%) Maldives (1.39%), France (1.33%), Sudan (1.21%), Korea
(Rep.) (1.18%), and Australia (1.02%).
In April 2021, the percentage share of FTAs in India was highest
at Bengaluru Airport (29.96%), followed by Mumbai Airport (17.48%), Ahmedabad
Airport (15.72%), Delhi Airport (9.21%), Cochin Airport (4.91%), Chennai
Airport (4.04%), Hyderabad Airport (3.34%), Lucknow Airport (2.40%), Bhavnagar
Seaport (2.37%), Kolkata Airport (2.11%), Calicut Airport (1.41%), Amritsar
Airport (1.35%), Kakinada Seaport (1.32%), Dabolim (Goa) (0.91%), Mangalore
Airport (0.72%).
Between January 2021 and April 2021, the number of FTAs was
376,083 as compared to 2.35 million in January- April 2020 registering a
negative growth of -84.0%.
Under the Swadesh Darshan scheme, 77 projects have been sanctioned
of worth Rs. 6,035.70 crore (US$ 863.60 million). In Union Budget 2020-21, the
Government has allotted Rs. 1,200 crore (US$ 171.70 million) for the
development of tourist circuits under Swadesh Darshan for Northeast.
The Ministry of Tourism launched the NIDHI portal to understand
the geographical spread of the hospitality sector, its size, structure and
existing capacity in the country. NIDHI will serve as a common data repository
for the Ministry of Tourism, State Departments of Tourism and Industry; this
will enable the Central and State Governments to deliver better support and
services including policies and strategies for the tourism sector. As of
December 31, 2020, 34,399 accommodation units have been registered on the
portal.
The launch of several branding and marketing initiatives by the
Government of India such as ‘Incredible India!’ and ‘Athiti Devo Bhava’ has
provided a focused impetus to growth. The Indian Government has also released a
fresh category of visa - the medical visa or M-visa, to encourage medical
tourism in the country. The Government is working to achieve 1% share in
world's international tourist arrivals by 2020 and 2% share by 2025.
Amid the relaxation provided by the government after the COVID
lockdown, the Indian Association of Tour Operators (IATO) has urged the
government to finalise a roadmap for resumption of international flights and
facilitate e-visas and tourist visas. The Indian Railway Catering and Tourism
Corporation (IRCTC) runs a series of Bharat Darshan tourist trains aimed at
taking people to various pilgrimages across the country.
Subsequently in November end, India introduced a graded relaxation
of its visa and travel restrictions for more categories of foreign nationals
and Indian nationals.
Post the pandemic crisis, the government plans to tap into
regional tourism by opening doors for South Asian country tourists.
The Government is also making serious efforts to boost investment
in the tourism sector. In the hotel and tourism sector, 100% FDI (Foreign
Direct Investment) is allowed through the automatic route. A five-year tax
holiday has been offered for 2-, 3- and 4-star category hotels located around
UNESCO World Heritage sites (except Delhi and Mumbai).
Government is planning to boost the tourism in India by leveraging
on the lighthouses in the country. 71 lighthouses have been identified in India
which will be developed as tourist spots. The lighthouses will feature museums,
amphi-theatres, open air theatres, cafeterias, children’s parks, eco-friendly
cottages and landscaping according to its capacity. India is often termed as
the hotspot for bio-diversity and its rich natural heritage is unparalleled in
many ways. As of December 2020, the country comprised ~104 national parks and
566 sanctuaries.
The Government of India also announced to develop 17 iconic
tourist sites in India into world-class destinations as per Union Budget
2019-20. Ministry of Tourism launched DekhoApnaDesh webinar in April 2020 to
provide information on the many destinations and the sheer depth and expanse of
the culture and heritage of Incredible India. Until July 2021, 90 webinars have
been conducted under the series.
In October 2021, Prime Minister, Mr. Narendra Modi launched the
Kushinagar International Airport in Uttar Pradesh to boost tourism.
On November 4, 2020, the Union Minister of State (IC) for Tourism
& Culture Mr. Prahlad Singh Patel inaugurated the “Tourist Facilitation
Centre” facility constructed under the project “Development of Guruvayur,
Kerala” (under the PRASHAD Scheme of the Ministry of Tourism).
In July 2021, the ministry drafted a proposal titled ‘National
Strategy and Roadmap for Medical and Wellness Tourism' and has requested
recommendations and feedback from several Central Ministries, all state and UT
governments and administrations as well as industry partners to make the
document more comprehensive.
In May 2021, the Union Minister of State (IC) for Tourism &
Culture Mr. Prahlad Singh Patel participated in the G20 tourism ministers'
meeting to collaborate with member countries in protecting tourism businesses,
jobs and taking initiatives to frame policy guidelines to support the
sustainable and resilient recovery of travel and tourism.
The Ministry of Tourism developed an initiative called SAATHI
(System for Assessment, Awareness & Training for Hospitality Industry) by
partnering with the Quality Council of India (QCI) in October 2020. The
initiative will effectively implement guidelines/SOPs issued with reference to
COVID-19 for safe operations of hotels, restaurants, B&Bs and other units.
Ministry of Tourism has introduced the Incredible India Tourist Facilitator
(IITF) and Incredible India Tourist Guide (IITG) Certification Programme, aimed
at creating an online learning platform of well-trained tourist facilitators
and guides across the country. The IITF concept is aimed to promote
micro-tourism, i.e., tourism in less explored areas of the country.
As per the Federation of Hotel & Restaurant Associations of
India (FHRAI), in FY21, the Indian hotel industry has taken a hit of >Rs.
1.30 lakh crore (US$ 17.81 billion) in revenue due to impact of the COVID-19
pandemic.
The Rise
In The Price Of Oil And It’s Negative Effect In Indian Tourism-::
It is expected that global
oil prices will increase in the future. Assessing the overall economic impacts
on tourism is difficult, as oil price rises will be concomitant with global
changes in other commodity prices, exchange rates, and incomes. A general
equilibrium perspective is therefore presented in this paper. The model couples
a global general equilibrium model with a purpose-built CGE model of New
Zealand, which focuses on describing tourism supply and demand in some detail.
The results indicate a decrease in real gross national disposable income of
1.7% for a doubling of oil price and a 9% reduction in the real value of
tourism exports. As a result of segment-specific price increases and differing
income and exchange rate effects and elasticity, the reduction in demand for
tourism in New Zealand by 18 segments differs substantially. The greatest
reduction in demand is observed for tourists from the United Kingdom.
Oil price movements
can significantly affect countries that are heavily reliant on the tourism
industry, and research indicates that such countries are unevenly exposed to
sudden fluctuations in oil prices . The harmful effects of oil price
fluctuations on transportation, production costs, economic uncertainty, and
disposable income have long been discussed. ...
... The emerging
concerns relating to oil prices and its impact on diverse aspects of industrial
economies have been studied by numerous researchers ]. Among this research, the
relationship between oil price and tourism has drawn significant
attention , and this is understandable as tourism is recognized
as the third largest industry in the world after oil and automobiles .
... Whilst econometric
tourism models are acknowledged for having a lower empirical cost, there is
strong evidence which portrays the importance of quantitative causal
econometric models in enabling a better understanding of the factors affecting
tourism demand [20,21]. Moreover, past literature indicates a negative
association between oil price and tourism [1,16], which is supported by
overwhelming evidence from factors like inflation, Consumer Price Index (CPI) ,
oil production, tourism income, and industrial production indices
... However, even in
these findings, there are significant differences in price sensitivity by
market (Becken and Lennox, 2012). Some researchers have suggested that domestic
tourism may make up for reductions in international tourism in response to
increasing travel costs
Consequently, we might
state that tourism and its related support industries rely heavily on road and
air transport, where oil is used as a fuel, or have oil expenses included
directly among the costs, for example in the cruise segment. Other tourism activities
such as scenic flights, jet boating and boat cruises
On the one hand, an
increase in oil prices brings the inflation rate to high which may have a
deteriorating effect on tourism demand because activities related to tourism
are usually oil intensive; therefore, tourism demand is susceptible to oil
price volatility. Conversely, inflation as a result of high oil prices may also
have a positive or productive effect for oil producing countries because higher
the oil prices, higher will be the income for those countries.
The Beckon And The Lenox Theory Of The Impact Of Oil On Tourism-::
Among macroeconomic risk
factors, oil shocks can also affect tourism profitability. Becken (2011)
and Becken and Lennox (2012) maintained that higher costs of energy have a negative impact on
travel and leisure activities, not only affecting the costs of the sector but
also influencing income of travelers who reduce tourism activities, thus
reducing the industry revenues
These studies have
generally taken macro-level approaches that are based on price elasticities of
demand to examine the potential effects of high oil prices on tourism in terms
of the total yearly tourism expenditure, the total annual number of tourist
arrivals and the number of overnight stays
On the one hand,
high oil-price induced inflation may be considered to have destructive effect
to tourism demand in a country in the sense that tourism is a discretionary and
oil-intensive activity, which can be vulnerable to oil price change. On the
other hand, there may also be inflation pressure that is beneficial to tourism demand
to a country due to the reason such high oil price also raises the income of
the oil producing countries
At the macro level, the
increasing mobility of global populations presents both opportunities and
threats to hotel futures. Opportunities are realised on the demand side, with
greater proportions of the world's population being enabled to travel, although
long-haul travel may well stagnate and decline into the future due to fossil
fuel scarcities .
That is it
Regards and Thanks
Pics
Shyamal Bhattacharjee
Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored FIVE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta in 2012, GOLDEN QUOTES on Inspiration, Sorrow, Peace and Life, published by B.F.C Publications, Lucknow, and QUOTES:: Evolution and Origin of Management Electives by Clever Fox Publishing, Chennai . He has a experience of about 35 years in Marketing .
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