Indian Tourism Sector

In News
The Centre has approved ₹3,295 crore in interest-free loans for tourism infrastructure development across states. These funds are part of the Special Assistance to States for Capital Investment (SASCI) scheme, with a focus on developing tourism infrastructure in the country. The loans are long-term, interest-free, and will be repaid over 50 years, aiming to boost local economies, create jobs, and enhance India's global tourism branding.

Key Developments in the Tourism Sector:

1. Tourism Infrastructure Investment

   • The Centre has approved ₹3,295 crore in interest-free loans under the SASCI scheme for infrastructure projects.

   • These loans are aimed at developing iconic tourist centers, promoting sustainable tourism, and improving the overall tourism experience.

   • States are encouraged to develop lesser-known destinations such as Bateshwar (Uttar Pradesh), Ponda (Goa), Gandikota (Andhra Pradesh), and Porbandar (Gujarat), enhancing regional tourism.

2. Tourism Sector Growth

   • India’s tourism sector has witnessed significant growth, with 76.17 million direct and indirect jobs created in 2022-23, an increase from 70.04 million in 2021-22.

   • The government has allocated ₹2,479 crore in the FY25 budget to continue tourism development.

3. Global Ranking

   • India ranks 39th among 119 countries in the Travel and Tourism Development Index (TTDI) for 2024, reflecting improvements in:

     • Prioritization of Travel & Tourism

     • Safety & Security

     • Health & Hygiene

4. Foreign Tourist Arrivals (FTAs)

   • India recorded 9.24 million FTAs in 2023, a 43.5% increase compared to 2022 (6.44 million).

   • Foreign exchange earnings from FTAs grew by 65%, reaching ₹2.3 lakh crore in 2023.

   • Measures such as promoting adventure tourism, easier access to e-visas, and a 24×7 multilingual tourist helpline are expected to further boost these numbers.

5. Domestic Tourism

   • Domestic tourism has also shown remarkable growth, with 2,509.63 million Domestic Tourist Visits (DTVs) recorded in 2023, compared to 1,731.01 million in 2022.

Government's Initiatives to Promote Tourism:

• Adventure Tourism & Niche Tourism: The government is focusing on expanding adventure and niche tourism (e.g., ecotourism, heritage tourism).

• Technological Integration: Technological innovations, including digital infrastructure, are being used to enhance tourist experiences.

• Infrastructure Development: The government has invested approximately ₹7,000 crore ($1 billion) to improve tourism infrastructure, which includes building roads, improving connectivity, and creating better accommodation facilities.

• Domestic Tourism Programs:

  • Dekho Apna Desh: Encourages Indians to explore domestic tourism destinations.

  • PRASHAD: Promotes religious tourism by developing infrastructure around pilgrimage centers.

  • Vibrant Village Programme: Aims to boost tourism in border areas.

  • SWADESH 2.0: Supports the development of lesser-known tourist spots.

  • Udaan Scheme: Promotes air connectivity to underserved regions.

Challenges Facing the Tourism Sector:

1. Infrastructure Deficiencies

   • Poor connectivity in remote areas, limited quality accommodation in rural destinations, and inadequate basic amenities are key barriers to the sector’s growth.

2. Safety and Security Concerns

   • Issues such as crime, health risks from diseases, and political instability in certain regions can deter international tourists.

3. Environmental Impact

   • Pollution in urban areas, overtourism in popular destinations, and damage to wildlife and ecosystems in sensitive areas pose challenges to sustainable tourism development.

4. Cultural Sensitivities

   • Tourists may inadvertently disrespect local customs, and the rise in tourism can threaten the preservation of cultural heritage sites.

5. Marketing and Promotion

   • Despite the “Incredible India” campaign, the country still faces challenges in effectively promoting its diverse tourism attractions. There is also a need for better branding and awareness.

6. Skill Development

   • There is a lack of trained professionals in the tourism industry, including guides, hoteliers, and service staff, along with language barriers for international tourists.

Conclusion and Way Forward:

• Tourism as an Economic Driver:
  India’s tourism sector has grown significantly due to government initiatives, infrastructure development, and global branding. It plays a vital role in job creation, economic growth, and social inclusion.

• Focus on Sustainable Tourism:
  The government is prioritizing sustainable tourism to preserve India’s natural and cultural resources. Technological integration and infrastructure development are expected to further enhance the sector.

• Vision for 2047:
  India aims to become a developed country by 2047, with tourism being a key driver in this transformation. Continued efforts in promoting responsible tourism, enhancing the visitor experience, and improving sector skills are essential to achieving this goal.

India’s tourism sector is on an upward trajectory, with substantial investments and initiatives designed to enhance its global standing. However, addressing infrastructure gaps, environmental sustainability, and cultural sensitivities will be crucial for ensuring that growth remains inclusive and responsible.