Among the services sector, the Tourism Industry is flourishing in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a large employment generator besides being a significant source of foreign exchange for the country. However the covid outbreak has thrown the spanner over this industry with international and national transport coming to a halt for most part of the financial year 2020-21. With some easing of this restrictions, the industry is slowly coming to terms with the current scenario. The tourism industry is betting on domestic travellers to boost its standing for now. Revenge tourism is already being felt all across the subcontinent.
In FY20, tourism sector in India accounted for 39 million jobs, which was 8.0% of the total employment in the country. By 2029, it is expected to account for about 53 million jobs. According to WTTC, India ranked 10th among 185 countries in terms of travel & tourism’s total contribution to GDP .Market Size
During 2020, a total of 8.38 million (Jan-Nov) foreign tourists arrived on e-Tourist Visa registering a growth of -67.2%. As of March 2021, the e-Tourist Visa facility was extended to citizens of 171 countries.
International hotel chains are increasing their presence in the country, and it will account for around 47% share in the tourism and hospitality sector of India by 2020 and 50% by 2022. By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue over US$ 59 billion.
Hotel and Tourism sector received cumulative FDI inflow of US$ 15.61 billion between April 2000 and December 2020.
Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31.