Tourism industry in India is showing healthy signs of growth for the past few years. The overall picture is encouraging in terms of investment and returns.
Tourism industry encourages and nurtures domestic entrepreneurial talent as its development is dependant on various manufacturing concerns in diverse areas such as small scale industries, handicrafts, food and beverages, textiles, toys, etc., that spring around any hot tourist destination due to the influx of tourists. In addition, a large number of people such as tourist guides, porters, etc., are indirectly associated with this industry for employment. Tourism industry thus has a place not only for both skilled and semi-skilled people but is also a very good source of increasing foreign exchange and international goodwill. This is diametrically different from other service sector industries like banking, finance, airlines and software development where employment and foreign exchange earning opportunities are solely dependent on skilled people with technical and managerial expertise and training.
There are strong indications across the world regarding India's emergence as a favorite tourist destination. India is one among the top ten travel and tourism economies in the world. According to the report of World Travel and Tourism Council (WTTC), the growth rate of India is projected as 9% per annum which is one of the highest rates in the world. Travel and tourism is generating over $37 bn of economic activity. In 2000, 2.62 million foreign tourists visited India; in 2001, the figure was 2.75 million, while in 2003 it reached near to 3 million. It is estimated by WTTC that by 2020, tourism in India could contribute Rs. 850,000 cr to the Gross Domestic Product (GDP). The rise in tourism sector has lead to increased budgetary allocations by the hospitality industry. The print and electronic media are the potential instruments to target potential customers. Growth in housing industry due to availability of loans with reduced interest rates has resulted in a boom of hotels and shopping malls. |
