Tourism Can Be India's Next Big GDP Earner
BUSINESS ECONOMICS|September 16-31, 2019
After the success of its tourism’s promotional slogan ‘Atithi Devo Bhava’, the Indian tourism ministry has come out with another catchphrase 'your search ends here'.
Tushar K. Mahanti

One hopes the new slogan helps in attracting more foreign tourists to India for experiencing nature’s beauty and cultural diversity. The country needs a vibrant tourism sector now more than ever. The economy is decelerating, private consumption is slowing down as is service sector growth. Higher growth in tourism and hospitality sector that accounts for nearly a tenth of India’s GDP and more than 8% of total employment can appreciably help the economy’s turnaround bid.

In its annual analysis quantifying the global economic and employment impact of travel and tourism in 185 countries, the World Travel & Tourism Council’s (WTTC) research reveals that the sector has outpaced the global economic growth for the eighth consecutive year in 2018 and grew at 3.9% during the year – higher than the global GDP growth of 3.2%. It contributed $8.8 trillion to the global economy and accounted for 319 million jobs, equivalent to one in every ten jobs. The scale of growth and importance of the sector is also evident from the fact that one in five of all new jobs created in the world over the last five years were in travel and tourism.

A large number of people are traveling across the world – be it for work needs or pleasure or for enjoying the beauty of old architectural splendours – and the number is increasing steadily with international arrivals growing from 25 million in the 1950s to 1.4 billion in 2018 and to an estimated 2.2 billion by 2029. The industry is proving resilient to both geopolitical uncertainty and economic volatility.

India jumps six places in tourism competitiveness index

India is in the midst of a growing tourism economy with its vast expanse of natural beauty, numerous historical monuments and age-old religious destinations. The recent government initiatives and steady promotional activities abroad have seen a sharp rise in India’s tourism competitiveness globally. It has jumped six places to reach the 34th rank in 2019 in global travel and tourism competitiveness list prepared by World Economic Forum (WEF).

“India showed the greatest percentage improvement to its overall Travel & Tourism Competitiveness Index (TTCI) score, which has helped it become the only lower-middle income country in the top 35,” the report said and lauded India’s natural and cultural assets and price competitiveness.

In the previous ranking in 2017, India had jumped 12 places to reach the 40th position. International openness through strong policies including implementing visa on arrival and e-visas and improvements in the country’s ground transport infrastructure and strong price competitiveness have benefited the travel and tourism sector in the country, the report said.

Continue reading your story on the app

Continue reading your story in the magazine

MORE STORIES FROM BUSINESS ECONOMICSView All

IT sector boosts employment after sluggish growth

India is the largest off-shoring destination for Information Technology (IT) companies across the world.

3 mins read
BUSINESS ECONOMICS
January 16-31, 2020

Indian handicrafts need new vision to compete globally

High-quality handicraft goods

10+ mins read
BUSINESS ECONOMICS
January 16-31, 2020

AHSI hosts Bicentennial Flower Show and World Regional Rose Convention 2020

The Agri Horticultural Society of India (AHSI) recently celebrated its bicentenary year by hosting the Bicentennial Flower Show and the World Regional Rose Convention 2020.

2 mins read
BUSINESS ECONOMICS
January 16-31, 2020

Threat Of A Third World War?

Renewed tension in West Asia forebodes a troubled 2020.

3 mins read
BUSINESS ECONOMICS
January 16-31, 2020

Railways Financial Stress: Is Economic Slowdown The Main Reason?

The Indian Railways (IR) has been going through a rough financial patch for the last few years.

4 mins read
BUSINESS ECONOMICS
January 16-31, 2020

US-Iran Hostility: India Feels Heat Of Crude Oil Price Hike

The geopolitical tension triggered by the killing of Iranian Islamic Revolutionary Guards Corps’ (IRGC) top military leader Qasem Soleimani and the subsequent retaliatory missile attacks on American military bases in Iraq by Iran has brought many countries including India to the edge.

3 mins read
BUSINESS ECONOMICS
January 16-31, 2020

Landmark Judgements To Stop Animal Cruelty

Some of our judges are now beginning to understand what animal cruelty does to a nation and act on it.

4 mins read
BUSINESS ECONOMICS
December 1-15, 2019

Opportunities And Challenges In The Aviation Sector

The Bharat Chamber of Commerce organised a national seminar and an exhibition on the ‘Indian Aviation Sector: Opportunities and Challenges’ at the Park Hotel, Kolkata. The prospects of private participation in maintenance, overhaul, and repair were discussed.

2 mins read
BUSINESS ECONOMICS
December 1-15, 2019

India Needs To Learn A Lesson From Brexit

The verdict given by the people of the United Kingdom in 2016 in favour of quitting the European Union (EU) is popularly known as ‘Brexit’. People who voted for Brexit argued that it was because of the adoption of erratic neo-liberal policies that had led to livelihood crises.

3 mins read
BUSINESS ECONOMICS
December 1-15, 2019

US-China Trade War Continues: Global Implications

The ongoing US-China trade war had its origin in 2012. It began then as a “cold war”, well before Donald Trump became the US President.

3 mins read
BUSINESS ECONOMICS
December 1-15, 2019
RELATED STORIES

Back to Business

Montréal has what it takes for cutting-edge corporate events.

5 mins read
Global Traveler
September 2020

Beaches, Nightclubs? Europe Mulls How To Get Tourists Back

The Mediterranean resort town of Ayia Napa is known for its boisterous parties. Each summer, thousands of young foreign tourists pack the dance floors of its nightlife district after a day at the beach.

4 mins read
Techlife News
May 23, 2020

Harry Goes Wild In London!

Back in Britain for one of hislast Official engagements, Prince Harry made time to party hard with his old pals.

2 mins read
Star
March 16, 2020

Pearl Of The Pacific

Natural beauty and adventure beckon in the remote Cook Islands.

5 mins read
Global Traveler
March 2020

China Virus Outbreak Rams Global Tourism, Costing Billions

Business around the world that have grown increasingly reliant on big-spending tourists from China are taking a heavy hit, with tens of millions of Chinese residents restricted from leaving their country as the coronavirus spreads.

4 mins read
AppleMagazine
January 31, 2020

Airbnb To Verify All 7 Million Properties To Improve Trust

Airbnb says it will spend the next year verifying that all 7 million of its listings are accurate and that the homes and rooms being offered for short-term stays meet basic quality standards.

2 mins read
Techlife News
November 09, 2019

Sharks Are Filling Cape Cod Waters, Businesses Love It

Almost half a century after Jaws, shark tourism is growing on Cape Cod

4 mins read
Bloomberg Businessweek
July 29, 2019

South Korea's Capital Is Positively Magnetic

South Korea’s capital is positively magnetic for global tourism, business travel and MICE

6 mins read
Business Traveler
November 2018

Top 5 Australian Cities Growing In Tourism and Air Connections

Australia's major cities are ramping up their business and leisure offerings in tandem with a boom in tourism and air connections

7 mins read
Business Traveler
October 2018

Peak Performance in Taiwan

Taiwan is a country with stunning nature, 21st century transport options and wonderful food.

6 mins read
Business Traveler
March 2016