Wednesday, June 26, 2024

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The World Travel & Tourism Council’s (WTTC) 2024 Economic Impact Research (EIR) highlights a remarkable recovery in India’s Travel & Tourism sector, with domestic tourism being a key driver.

The research indicates that while domestic tourism is boosting the sector’s recovery, international travel spending is still below pre-pandemic levels.

According to the latest findings, the sector’s contribution to India’s GDP reached over INR 19.13TN in 2023, surpassing 2019 levels by nearly 10%.

Employment in the Travel & Tourism sector grew by 10%, reaching just under 43MN, which is 8% higher than in 2019.

Domestic visitor spending was 15% higher than in 2019, totaling INR 14.64TN. However, international visitor spending was over 14% lower than in 2019, with INR 0.4TN less spent by international visitors last year compared to 2019.

The significant growth in domestic visitor spending demonstrates that domestic tourists have been crucial in the sector’s post-pandemic recovery.

Julia Simpson, WTTC President & CEO, said; “India’s Travel & Tourism sector is bouncing back with remarkable vigour, driven by a surge in domestic tourism.

“While international visitor spending is still catching up, the unwavering support from local travellers showcases the resilience and potential of this dynamic sector. With continued strategic efforts, India is set to shine as a global tourism powerhouse.

“The Indian Government’s ambition to facilitate 100MN inbound tourists at the anniversary of India’s independence in 2047, as part of the @2047 ambition, will supercharge the Indian economy and make India one of the world’s most popular travel destinations.”

Regional Outlook:

WTTC forecasts that Travel and Tourism across South Asia will contribute INR 25.1TN this year, with sector-supported jobs reaching 54.77MN by the end of 2024. Domestic visitor spending is expected to hit INR 18.3TN, while international visitor spending is projected to reach INR 3.8TN.

Annual Forecast:

Across all metrics, the sector is expected to surpass 2019 levels by the end of this year.

WTTC projects that Travel & Tourism will contribute nearly INR 21.15TN to the Indian economy in 2024, a 21% increase from 2019. Employment is predicted to rise by 2.45MN, representing one in 11 jobs in India.

International visitor spending is expected to grow by over 17%, reaching INR 2.85TN, while domestic visitor spending is anticipated to continue growing, with a 9.6% increase to more than INR 16TN.

Decadal Forecast:

With appropriate government support, WTTC forecasts that the sector could grow its annual GDP contribution to INR 43.25TN by 2034, accounting for 7.6% of the Indian economy, and potentially employing nearly 63MN people across the country.

The Indian Government’s goal to attract 100MN inbound tourists by the 100th anniversary of India’s independence in 2047, as part of the @2047 vision, is set to significantly boost the economy and establish India as one of the world’s premier travel destinations.

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