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Tourism and Hospitality

Tourism & hospitality industry in india, the tourism sector is projected to contribute us$ 250 billion to the country’s gdp by 2030, generating employment for 137 million individuals., advantage india, robust demand.

* Drawing upon world-class healthcare amenities and traditional healing practices, medical tourism and wellness retreats entice 21% of international travelers.

* The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.

* International tourist arrivals are expected to reach 30.5 million by 2028.

* According to WTTC, over the next decade, India’s Travel & Tourism’s GDP is expected to grow at an average of 7.1% annually.

Robust Demand

Attractive Opportunities

* India is geographically diverse and offers a variety of cultures that come with its own experiences, making it one of the leading countries in terms of international tourism expenditure.

* Travel and tourism are two of the largest industries in India, with a total contribution of about US$ 199.6 billion to the country’s GDP.

* The government has taken steps to boost investments in facilitate spiritual tourism with states like Uttar Pradesh developing tourist circuits and Uttarakhand and West Bengal enhancing infrastructure for pilgrims.

Attractive Opportunities

Policy support

* In the 2024 interim Budget, Finance Minister Ms. Nirmala Sitharaman allocated Rs. 2,449.62 crore (US$ 294.8 million) to the tourism sector, a 44.7% increase from the previous fiscal year.

* The Ministry of Tourism launched the Swadesh Darshan Scheme to develop theme-based tourist circuits, sanctioning 76 projects. Upgraded to Swadesh Darshan 2.0 (SD2.0).

* The Prime Minister, Mr. Narendra Modi inaugurates and unveils 52 tourism sector projects valued at over Rs. 1,400 crore (US$ 168.5 million) under the Swadesh Darshan and PRASHAD Scheme.

Policy Support

Diverse Attractions

* Airport enhancement and the spread of regional airports are opening new opportunities for business, and for drawing larger visits from tourists.

* The country’s big coastline is dotted with attractive beaches.

Diverse Attractions

Tourism and Hospitality Industry Report

Introduction.

With a total area of 3,287,263 sq. km extending from the snow-covered Himalayan heights to the tropical rain forests of the south, India has a rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. This provides a significant opportunity to fully exploit the potential of the tourism sector. The government has taken steps to boost investments in facilitate spiritual tourism with states like Uttar Pradesh developing tourist circuits and Uttarakhand and West Bengal enhancing infrastructure for pilgrims.

India being one the most popular travel destinations across the globe has resulted in the Indian tourism and hospitality industry emerging as one of the key drivers of growth among the services sector in India. The tourism industry in India has significant potential considering that Tourism is an important source of foreign exchange in India similar to many other countries.

It is widely acknowledged that the tourist and hospitality sector, which encompasses travel and hospitality services like hotels and restaurants, is a development agent, a catalyst for socioeconomic growth, and a significant source of foreign exchange gains in many countries. India's rich and exquisite history, culture, and diversity are showcased through tourism while also providing significant economic benefits. The consistent efforts of the central and state governments have helped the tourism industry to recover from the COVID-19 pandemic shock and operate at the pre-pandemic level.

tourism and hospitality industry

Market Size

According to WTTC, India is ranked 10th among 185 countries in terms of travel & tourism’s total contribution to GDP in 2019. According to WTTC, the contribution of India's travel and tourism sector to India's economy was worth US$ 199.6 billion in 2022.

The Indian travel and tourism industry is expected to record an annual growth at 7.1% per annum. In WTTC’s Economic Impact 2023 report, India’s Travel and Tourism GDP contribution grew by 5.9%.

In 2021, the travel & tourism industry’s contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028. By 2029, it is expected to account for about 53 million jobs. In India, the industry’s direct contribution to the GDP is expected to record an annual growth rate of 7-9% between 2019 and 2030.

The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20. The Indian airline travel market was estimated at ~US$ 20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports. The Indian hotel market including domestic, inbound, and outbound was estimated at ~US$ 32 billion in FY20 and is expected to reach ~US$ 52 billion by FY27, driven by the surging demand from travellers and sustained efforts of travel agents to boost the market.

Contribution of travel and tourism to GDP

By 2028, international tourist arrivals are expected to reach 30.5 billion and generate revenue of over US$ 59 billion. However, domestic tourists are expected to drive the growth, post-pandemic. International hotel chains are increasing their presence in the country, and they will account for around 47% share of the tourism and hospitality sector of India by 2020 and 50% by 2022.

As per the Ministry of Tourism, Foreign Tourist Arrivals (FTAs) in December 2023 were 1,070,163. FTAs during the period January-December 2023 were 9,236,108 as compared to 6,437,467 in January-December 2022.

The percentage share of Foreign Tourist Arrivals in India during December 2023 among the top five ports was highest at Delhi Airport (29.92%) followed by Mumbai Airport (18.46%), Haridaspur Land Check Post (7.09%), Chennai Airport (7.02%), Bengaluru Airport (6.20%). FTAs during the period January-December 2023 were 9.24 million.

The percentage share of Foreign Tourist Arrivals in India during December 2023 among the top five source countries was highest from UAE (22.33%) Bangladesh (16.97%), followed by UK (10.33%), Australia (8.58%) and Canada (4.15%).

In 2023, 26.52% of foreign tourists visited for Indian Diaspora which marks 9,236,108 foreigners.

FEE during the period January-December 2023 were US$ 28.1 billion.

Domestic visitor spending increased by 20.4% in 2022, only 14.1% below 2019. International visitor spending rose by 81.9% in 2022, but still 40.4% behind 2019 numbers.

Cumulative FDI equity inflow in the Hotel and Tourism industry is US$ 17.1 billion during the period April 2000-December 2023. This constitutes 2.57% of the total FDI inflow received across sectors.

Investments/Developments

  • In April 2024, EaseMyTrip.com launches its first franchise store in Karnal, Haryana, as part of its expansion via the franchise model, reinforcing its dedication to offering superior experiences across offline and online channels.
  • As of February 2024, Ayodhya is anticipated to host between 50 to 100 hotels over the next 3 to 4 years. The city, acclaimed as a global religious destination, is primed for substantial development, with Taj Hotels poised to establish its fourth property in the area.
  • In March 2024, MakeMyTrip revealed a partnership with the Department of Tourism, Madhya Pradesh, and redBus to boost tourism in the region, aiming for sustainable development and positioning Madhya Pradesh as a premier destination.
  • In March 2024, Indian Hotels Corporation Ltd (IHCL) has announced plans to recruit 2,000-2,500 employees in the fiscal year 2025. This expansion of the workforce aligns with IHCL's ambitious plans, which include a pipeline of 85 hotels.
  • In February 2024, Mahindra Holidays & Resorts India Ltd (MHRIL) intends to invest around Rs. 4,500 crore (US$ 541.6 million) over the next three to four years, aiming to double its room capacity to 10,000.
  • In February 2024, Oberoi Realty, a real estate developer, has partnered with Marriott International, a global hospitality leader, to develop two Marriott properties in Mumbai.
  • In February 2024, OYO announced its venture into sports hospitality, selecting 100 hotels across 12 cities like Delhi, Chennai, and Bangalore. The focus is on catering to large sports events by providing accommodation and services for athletes and officials.
  • In February 2024, the Radisson Hotel Group announced its rapid expansion in India, securing agreements for 21 hotels across nine distinct brands in 2023.
  • In February 2024, Lemon Tree Hotels intends to launch 30 new properties across the country this year, potentially increasing its room capacity by over 2,000 rooms. The hospitality chain is optimistic about the demand driven by middle-class consumers.
  • In December 2023, IHCL expanded its presence in Maharashtra as it signed a hotel in Bandra, Mumbai. The Brownfield project will be branded an IHCL- SeleQtions hotel.
  • In December 2023, TAJ won the ‘World’s finest luxury grand palaces’ award at the ‘101 Best Executive Summit’ in Germany.
  • In November 2023, Indian Hotels Company (IHCL) announced the opening of Ginger Mumbai, Airport. The 371 Keys flagship Ginger hotel, strategically located near the domestic airport will introduce the brand’s lean luxe design and service philosophy of offering a vibrant, contemporary, and seamless hospitality experience to its guests.
  • In September 2023, Easemytrip signed an MOU with the Government of Uttarakhand (UK) to invest Rs. 1,000 crore (US$ 120.16 million) and build 4-5 large marquee resorts over the next few years in Uttarakhand.
  • An investment of Rs. 2,400 crore (US$ 289.89 million) was allocated to the Ministry of Tourism as the sector holds huge opportunities for jobs and entrepreneurship for youth.
  • An investment-linked deduction under Section 35 AD of the Income Tax Act is in place for establishing new hotels under the 2-star category and above across India, thus permitting a 100% deduction in respect of the whole or any expenditure of capital nature.
  • In 2019, the Government reduced GST on hotel rooms with tariffs of Rs. 1,001 (US$ 14.32) to Rs. 7,500 (US$ 107.31) per night to 12% and those above Rs. 7,501 (US$ 107.32) to 18% to increase India’s competitiveness as a tourism destination.
  • In Union Budget 2023-24, US$ 290.64 million was allocated to the Ministry of Tourism as the sector holds huge opportunities for jobs and entrepreneurship for youth in particular and to take the promotion of tourism on mission mode, with the active participation of states, the convergence of government programmes and public-private partnerships.
  • An app will be developed covering all relevant aspects of tourism. States will be encouraged to set up Unity Malls in State Capital as the most prominent tourism centres to promote One District One Product, GI products, handicrafts, and products of other States.
  • In 2021, Government of India announced 40,000 e-tourist visas out of 500,000 free regular visas to the tourist, to ensure a geographical spread of the incentive to important source markets globally.
  • Government of India has set a target to create 220 new airports by 2025.
  • The Emergency Credit Line Guarantee Scheme (ECLGS) covered through a liberal definition of MSME (micro small and medium enterprises) has been expanded to include tourism and hospitality stakeholders. Infrastructure status has been granted to exhibition-cum-convention centres.
  • A separate liquidity window of Rs. 15,000 crore (US$ 1.8 billion) has been released for the sector.
  • A total of 48,775 accommodation units (both classified and unclassified) have been registered on the National Integrated Database of Hospitality Industry (NIDHI) portal and 11,220 units have self-certified for SAATHI standards in September 2022.
  • In October 2022, Indian Hotels Company (IHCL) announced the launch of its new Indian-concept restaurant brand, Loya. Debuting at Taj Palace, New Delhi, Loya captures the culinary essence traversing the landscape of North India.
  • Hospitality unicorn OYO has acquired Europe-based vacation rental company Direct Booker for US$ 5.5 million in May 2022.
  • Accor, a French hospitality major will expand its India's portfolio by adding nine additional hotels in the mid-scale and economy categories, bringing the total number of hotels 54 in India.
  • The Medical Tourism sector is expected to increase at a CAGR of 21.1% from 2020-2027.
  • India was globally the third largest in terms of investment in travel and tourism with an inflow of US$ 45.7 billion in 2018, accounting for 5.9% of the total investment in the country.
  • Indian government has estimated that India would emerge with a market size of 1.2 million cruise visitors by 2030-31. Dream Hotel Group plans to invest around US$ 300 million in the next 3-5 years for the development of the cruise sector in India.
  • India is the most digitally advanced traveller nation in terms of digital tools being used for planning, booking, and experiencing a journey. India’s rising middle class and increasing disposable income has supported the growth of domestic and outbound tourism.
  • The United Nations World Tourism Organisation selected Pochampally in Telangana as one of the best tourism villages in November 2021.

Government Initiatives

The Indian Government has realised the country’s potential in the tourism industry and has taken several steps to make India a global tourism hub. Some of the major initiatives planned by the Government of India to boost the tourism and hospitality sector of India are as follows:

In the 2024 interim Budget, Finance Minister, Ms. Nirmala Sitharaman allocated Rs. 2,449.62 crore (US$ 294.8 million) to the tourism sector, a 44.7% increase from the previous fiscal year. This marks a positive change from the 2023 Union Budget's initial allocation of Rs. 2,400 crore (US$ 288.8 million), later revised to Rs. 1,692.10 crore (US$ 203.6 million).

The Ministry of Tourism launched the Swadesh Darshan Scheme to develop theme-based tourist circuits, sanctioning 76 projects. Upgraded to Swadesh Darshan 2.0 (SD2.0), it targets sustainable tourism, selecting 57 destinations for development, with States/UTs preparing plans accordingly.

The Prime Minister Mr. Narendra Modi inaugurates and unveils 52 tourism sector projects valued at over Rs. 1400 crore (US$ 168.5 million) under the Swadesh Darshan and PRASHAD Scheme.

Ministry of Tourism has partnered with the Quality Council of India (QCI), to assist the Hospitality Industry in their preparedness to continue operations safely and mitigate risks arising out of the COVID-19 pandemic through an initiative called SAATHI (System for Assessment, Awareness and Training for Hospitality Industry). A hotel/unit goes through the SAATHI framework and agrees to fully follow the requirements wherever applicable possible, and a self-certification is issued. Self-certified Hotel/units attend webinars to clarify doubts through live interactions. If Hotel/unit desires, they may undertake site-assessment based on SAATHI framework through QCI accredited agencies and an assessment report with opportunities for improvement is shared with the assessed unit.

Under this Loan Guarantee Scheme for Covid Affected Tourism Service Sector (LGSCATSS), loan up to US$ 12,110 will be extended to each Tour Operators/ Travel Agents/ Tourist Transport Operators approved/recognized by the Ministry of Tourism.

Guarantees for Skill Development Loans by the member banks of IBA up to Rs. 1.5 lakh (US$ 1,801) extended by lending institutions to eligible borrowers without collateral or third-party guarantee.

  • Visa reforms include a significantly expanded Golden Visa scheme, a five-year Green residency and new entry permits, including one for job seekers. The new system also offers additional benefits to sponsor family members.
  • To ease travels for international tourists, the Government of India has launched a scheme wherein five lakh tourists will get free visas.
  • In August 2022, Ministry of Tourism sanctioned 76 projects for Rs. 5,399.15 crore (US$ 678.39 million) under Swadesh Darshan Scheme for development of tourism infrastructure in the country.
  • In June 2022, the Ministry of Tourism along with Associations of Indian Universities (AIU) initiated a 12 episode webinar series under ‘Azadi Ka Amrut Mahotsav’ (AKAM) to engage and expose young minds of our country to the rich and diverse heritage of the country.
  • Till the end of September 2022, a total of 155 Dekho Apna Desh webinars have been organized by Ministry of Tourism.
  • The Ministry of Tourism has launched the National Strategy for Sustainable Tourism and Responsible Traveller Campaign in June 2022.
  • From November 15, 2021, India allowed fully vaccinated foreign tourists to visit India, which in turn will help revive the Indian travel and hospitality sector.
  • In November 2021, the Ministry of Tourism signed a Memorandum of Understanding (MoU) with Indian Railway Catering and Tourism Corporation to strengthen hospitality and tourism industry. The ministry has also signed a MoU with Easy My Trip, Cleartrip, Yatra.com, Make My Trip and Goibibo.
  • In November 2021, the Indian government planned a conference to boost film tourism in the country with an aim to establish domestic spots as preferred filming destinations. This move is expected to create jobs and boost tourism in the country.
  • In September 2021, the government launched NIDHI 2.0 (National Integrated Database of Hospitality Industry) scheme which will maintain a database of hospitality sector components such as accommodation units, travel agents, tour operators, & others. NIDHI 2.0 will facilitate the digitalisation of the tourism sector by encouraging all hotels to register themselves on the platform.
  • Government is planning to boost the tourism in India by leveraging on the lighthouses in the country. 71 lighthouses have been identified for development as tourist spots.
  • The Ministry of Road Transport and Highways has introduced a new scheme called ‘All India Tourist Vehicles Authorisation and Permit Rules, 2021’, in which a tourist vehicle operator can register online for All India Tourist Authorisation/Permit. This permit will be issued within 30 days of submitting the application.
  • The Indian Railway Catering and Tourism Corporation (IRCTC) runs a series of Bharat Darshan tourist trains aimed at taking people to various pilgrimages across the country.
  • During 2019-20, an additional fund Rs. 1,854.67 crore (US$ 269.22 million) was sanctioned for new projects under the Swadesh Darshan scheme.
  • Ministry of Tourism sanctioned 18 projects covering all the Northeastern States for Rs. 1,456 crore (US$ 211.35 million) to develop and promote of tourism in the region under Swadesh Darshan and PRASHAD schemes.
  • Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity,’ was inaugurated in October 2018 and the total revenue generated till November 2019 stood at Rs. 82.51 crore (US$ 11.81 million).

State Government Initiatives

  • In Jammu and Kashmir, in April 2021, a mega tourism promotion event “Tapping the Potential of Kashmir: Another Day in Paradise” was organised in Srinagar. The event aimed to showcase the myriad tourism products of Jammu & Kashmir and promote tourism in the region as the destination for leisure, adventure, eco, wedding, films and MICE tourism steps have been taken by the government to provide better facilities to the old.
  • The strategy of Uttarakhand Tourism is to identify key originating regions and tourist segments, which would then be the focus of marketing campaigns.
  • Madhya Pradesh tourism board has opened the door for private investment within the state by providing all the aid and facilities to the investors.
  • The AP Tourism Development Corporation (APTDC) plans to establish 100 kiosks across the state in the first phase, providing employment opportunities to the youth.
  • In October 2021, the Tripura government collaborated with Infovalley Educational & Research (P) Ltd. as part of a public-private partnership (PPP) to run the State Institute of Hotel Management (SIHM). Through the SIHM, the government aims to empower the youth and contribute to the growth of hotels and hospitality management in the state.
  • The Ministry of Tourism sanctioned three projects for a total amount of Rs. 179.68 crore (US$ 24.24 million) under the Swadesh Darshan scheme in Gujarat. The Ministry of Tourism has approved 16 projects for over Rs. 1,300 crore (US$ 171.2 million) in India's Northeast under the “Swadesh Darshan” Scheme.
  • In July 2021, the Tamil Nadu state government decided to implement an integrated mega tourism plan, which included new lighting arrangements for the Thiruvalluvar statue at Kanyakumari, starting renovations at Poompuhar tourist spot and improving roads leading to tourist spots, spiritual places, and adventure tourism spots. It also includes unveiling a new tourism policy, establishing more hotels, resorts, and convention centres, and increasing contribution of public and private sectors in the tourism sector.
  • In July 2021, Andhra Pradesh Tourism Authority urged stakeholders in the tourism sector in the state to register with the Andhra Pradesh Tourism under the Tourism Trade Registration and Facilitation Guidelines 2020.
  • Jharkhand Tourism Policy Offers Attractive Incentives and Opportunities for Investors.
  • Nagaland Launches Initiatives to Promote Off-Road Tourism.

Staycation is seen as an emerging trend were people stay at luxurious hotels to revive themselves of stress in a peaceful getaway. To cater to such needs, major hotel chains such as Marriott International, IHG Hotels & Resorts and Oberoi hotels are introducing staycation offers where guests can choose from a host of curated experiences, within the hotel. India’s travel and tourism industry has huge growth potential. The industry is also looking forward to the expansion of e-Visa scheme, which is expected to double the tourist inflow in India. India's travel and tourism industry has the potential to expand by 2.5% on the back of higher budgetary allocation and low-cost healthcare facility according to a joint study conducted by Assocham and Yes Bank.

It is irrefutable that the tourist industry is becoming a more significant economic force and has the potential to be used as a tool for development. The tourist industry not only drives growth, but it also raises people's standards of living with its ability to provide significant amount of diverse employment opportunities. It promotes environmental preservation, champions diverse cultural heritage, and bolsters international peace. By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018.

India's travel and tourism industry

Note: *in US$ terms

Note: Conversion rate used in March 2024, Rs. 1 = US$ 0.012

References: Media Reports, Ministry of Tourism, Press Releases, Department for Promotion of Industry and Internal Trade (DPIIT), Press Information Bureau (PIB), Union Budget 2023-24, Economic Survey 2022-23

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Tourist Spots in India

Industry Contacts

  • Department of Tourism
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  • Federation of Hotel and Restaurant Associations of India

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Tourism & Hospitality

India ranks 6th according to wttc in terms of travel & tourism total contribution to gdp in 2022  .

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Quick links, unlock the marvels of incredible india, powerhouse of tourism and hospitality.

Tourism and Hospitality, as one of India's largest service industries, plays an extraordinary role in driving the nation's growth and prosperity. 

The Tourism and Hospitality sector is an integral part of the Make in India initiative, serving as a vital economic catalyst that fuels job creation and rapid development. 

It acts as a stimulant for the growth of multi-use infrastructure, including world-class hotels, resorts, exquisite restaurants, efficient transportation networks (aviation, roads, shipping, and railways), and state-of-the-art healthcare facilities. 

India proudly boasts a tapestry of geographical diversity, encompassing awe-inspiring world heritage sites and niche tourism offerings such as captivating cruise tourism, exhilarating adventure tourism, renowned medical tourism, and mesmerizing eco-tourism. These unique offerings have resulted in an exponential increase in tourist arrivals, opening up vast employment opportunities. 

The recently announced 2023 Union Budget has firmly placed tourism as a key sector in the spotlight. The Ministry of Tourism, in its mission mode, is dedicated to promoting the industry through active participation from all States, the convergence of Government Programs, and the establishment of impactful Public-Private Partnerships. This visionary approach will facilitate comprehensive development in at least 50 selected destinations through a challenge mode process. 

Recognizing the importance of diversity and gender empowerment, the tourism industry stands as a leading employer of women. The government proactively collaborates with industry stakeholders to create a conducive work environment that fosters equal opportunities and celebrates the contributions of female employees. 

The Ministry of Tourism has also designated the Year 2023 as the 'Visit India' year, an invitation to the world to witness the splendor and magnificence that our nation has to offer. 

Embracing a progressive outlook, India welcomes 100% Foreign Direct Investment (FDI) in the tourism industry under the automatic route.  

Additionally, 100% FDI is permitted for tourism construction projects, including the development of exquisite hotels, resorts, and unparalleled recreational facilities. 

For comprehensive details, please refer to the FDI Policy, which highlights the investment opportunities and guidelines in the tourism sector. 

India's tourism industry stands as a beacon of boundless possibilities, with its rich heritage, cultural tapestry, and captivating destinations. We invite you to embark on an extraordinary journey of investment and partnership, where your vision aligns with the immense potential India holds

Foreign Tourist Arrivals (Jan-Dec 2023)

Domestic Tourist Visits to all States/UTs (2022)

Annual Growth Rate of FTAs in India (2022)

Foreign exchange earnings (FEE) from tourism (Jan-Dec 2023)

Share of India in International Tourism Receipts (ITRs) in World

6th in terms of Travel & Tourism total contribution to GDP, WTTC (2021)

2nd in terms of Travel & Tourism Employment, WTTC (2021)

39 th  on the World Economic Forum Travel & Tourism Development Index (2024)

  • FOREIGN INVESTMENT
  • INDUSTRY TRENDS
  • POLICIES & SCHEMES

Government of India envisions $56 Bn forex, creating around 140 Mn jobs in tourism by 2030 through inclusive growth and  particularly focusing on cruise tourism, ecotourism and adventure tourism.   

The Indian Tourism sector ranks among the fastest-growing economic sectors in the country. The industry significantly impacts employment and drives regional development, while also creating a multiplier effect on the performance of related industries.

By 2028, India's tourism and hospitality industry is projected to generate revenue of over $59 Bn. Additionally, Foreign Tourist Arrivals (FTAs) are anticipated to reach 30.5 Mn by 2028.

In light of India's G20 Presidency and the India@75 Azadi ka Amrit Mahotsav celebrations, the Ministry of Tourism has designated 2023 as the 'Visit India Year' to promote inbound travel.

The Honorable Prime Minister has envisioned a mission mode approach to develop tourism during Amrit Kaal, with a strategic roadmap for the next 25 years. The objective is to position India as the foremost travel destination globally by the time we celebrate India@100 in 2047, creating unparalleled appeal for visitors from around the world. 

Ministry of Tourism is planning to organize a Global Tourism Investors Summit along with Central Ministries and State/UT Governments to showcase opportunities for investment and trade. The event will allow global investors to explore Indian Tourism products and services.

Union Budget 2023 Highlights:

  • 50 tourist destinations will be selected through challenge mode to be developed as a whole package for domestic and international tourism
  • Sector-specific skilling and entrepreneurship development to be dovetailed to achieve the objectives of the ‘Dekho Apna Desh’ initiative
  • Tourism infrastructure and amenities to be facilitated in border villages through the Vibrant Villages Programme
  • Unity Malls to be set up in State Capitals or prominent tourist centres

GROWTH DRIVERS

Infrastructure development.

More than half of the Ministry of Tourism’s budget is channelised for funding the development of destinations, circuits, mega projects as well as rural tourism infrastructure projects.

Hotels & Accommodation

Revenue is projected at $7.66 Bn in 2023. CAGR of 8.29% between 2023-27. 61.3 Mn potential customers by 2027

Adventure Tourism

India has 70% of the Himalayas, a 7,000+ Km of coastline, ranks 10th in total area under forest cover, and is one of the three countries in the world with both hot and cold deserts.

Medical tourism

Medical tourism and wellness retreats attract 21% of international travelers, leveraging world-class healthcare facilities and traditional healing practices.

Cruise Tourism

Cruise passenger traffic expected to increase from 0.4 Mn to 4 Mn by 2032. Increase in economic potential from $110 Mn to $5.5 Bn.

Eco-Tourism

Expected to grow at 15.7% between 2019-27 & reach $4.55 Bn. India offers unique destinations, exploration of wildlife, and pristine undisturbed natural areas.

Meetings, Incentives, Conferences, and Exhibitions

The Indian MICE market has less than 1% share currently, but with initiatives such as ‘Meet in India’, National Advisory Council for Mice, India Mice Board, MICE Tourism is projected to double in next 5 years.

Entrepreneurial Opportunities

The tourism sector has 1,300+ DPIIT recognized startups.

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Frequently Asked Questions

The Ministry of Tourism is set to host the First Global Tourism Investors Summit in 2023 in collaboration with Central Ministries and State/UT Governments. 

This mega event aims to highlight investment and trade opportunities while providing a platform for international investors to discover India's diverse tourism products and services.  

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Recognising the potential of rural tourism in the country, the Ministry of Tourism has identified Rural Circuit as one of the fifteen thematic circuits for development under the Swadesh Darshan Scheme and is aimed at leveraging tourism as a force multiple for revitalizing the rural economy and for giving both domestic and international tourists a glimpse of rural aspect of the country.

Further, Ministry of Tourism has formulated a Draft 'National Strategy and Roadmap for Development of Rural Tourism in India - An initiative towards Atmanirbhar Bharat', which, inter alia, focuses on generating income and jobs in rural areas and empower local communities, youth and women, fulfilling the vision of Aatmanirbhar Bharat.

The GOI has identified 78 lighthouses in the country as centres of tourism, which are in the first phase under Public Private Partnership (PPP). The identified lighthouses are in Gujarat, Maharashtra, Goa, Karnataka, Kerala, Lakshadweep, Tamil Nadu, Puducherry, Andhra Pradesh, Odisha, West Bengal and Andaman and Nicobar Islands. The GOI has kick started the ‘lighthouse tourism’ project by inviting initial qualification bids to develop eight lighthouses in the first phase, at a cost of INR 128 crore, under the public-private-partnership model for 7 lighthouses.

The goal of the revamped Swadesh Darshan 2.0 Scheme is to develop sustainable and responsible tourism destinations in the country. The scheme is aimed at 360-degree holistic development with a focus on increasing self-employment, youth skilling, private sector investments, and preserving local cultures.

The strategic objectives of the Scheme are: (i) To enhance the contribution of tourism to the local economies (ii) To create jobs including self-employment for local communities (iii) To enhance the skills of local youth in tourism and hospitality (iv) To increase private sector investment in tourism and hospitality (v) To preserve and enhance the local cultural and natural resources  

Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) scheme focuses on developing and identifying pilgrimage sites across India for enriching the religious tourism experience. It aims to integrate pilgrimage destinations in a prioritised, planned and sustainable manner to provide a complete religious tourism experience. As on date, total number of destinations/sites identified for development under the scheme at present are 68 in 30 states/UTs.

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India’s travel and tourism sector: steering towards a brighter future.

Rajesh Magow

Rajesh Magow

Rajesh Magow is the Co-founder and Group CEO of MakeMyTrip.

As we review 2023, the Indian travel and tourism industry’s role in fueling the nation’s economic resurgence stands out prominently. The sector’s post-pandemic rebound was remarkable, not just in its pace but also in its contribution to the Indian economy. According to WTTC, the industry’s contribution to the GDP has seen a steady increase, with a projection of about INR 16.5 trillion in 2023, underlining its vital role in the country’s economic fabric. This growth is a reflection of a sector that has not only recovered but also adapted and innovated to grow out of unprecedented challenges. The resilience of the travel and tourism industry is a beacon of hope and a benchmark for other sectors. This growth trajectory speaks volumes about the sector’s untapped potential as a key driver for economic growth, employment generation, and infrastructural development. 

In 2023, there was an increase in travel frequency among Indians, with the majority still favoring popular tourist hotspots. Still, a small yet growing number of travelers were more willing than ever to explore uncharted destinations such as Varkala (Kerala), Yercaud (Tamil Nadu), Mandarmani (West Bengal), Gokarna (Karnataka), Kumbhalgarh (Rajasthan), and more. This emerging trend hints at a larger opportunity for destination diversification to give some much-needed time to the hotspots to make infrastructure improvements and increase capacity. With its kaleidoscope of cultures, landscapes, and historical sites, India offers immense potential for expanding the travel canvas. The Government of India, recognizing this opportunity, has actively promoted lesser-known destinations through initiatives such as ‘Dekho Apna Desh’ and ‘Swadesh Darshan’. These programs encourage exploration of the nation’s hidden gems and aim to create a more balanced tourism ecosystem.

The network of roads and airways in India has dramatically improved, reducing travel time and making travel more accessible. Major projects such as the Bengaluru-Mysore Expressway, Delhi-Jaipur Expressway, and the ongoing Delhi-Amritsar-Katra Expressway, among others, are helping reshape road travel in the country. Further, Air transportation is now reaching most corners of the country, with more than 85 new sectors added since April 2023.

By promoting such diversity, the government and the travel industry can work together to alleviate the pressures of over-tourism in traditional hotspots while simultaneously boosting local economies elsewhere. This strategic shift towards promoting undiscovered locales is pivotal in distributing tourism’s economic and social benefits, thereby fostering sustainable growth across the country. Technology-led platforms are doing their bit by increasingly nudging travelers to explore lesser-known destinations, helping expand the horizons beyond traditional tourist hotspots.

Another important catalyst in the sector has been advancement and integration of technology over the past few years both on the demand and supply side. While the overall digitization drive in the country across sectors remained the highlight of 2023, the Travel Tech industry continues to march ahead in taking the lead in leveraging cutting-edge technologies to help solve customer and supply-side complex issues. These platforms have moved beyond basic online booking systems to embrace sophisticated technologies like Big Data analytics, AI, and Machine Learning to provide personalized experiences to customers. The impact of these technologies is profound, offering a seamless and customized journey for travelers while ensuring operational efficiency for businesses. The sophistication of these tools has allowed the travel tech industry to curate unique, memorable travel experiences that cater to individual preferences and needs. This evolution of technology in travel is not just enhancing customer experiences; it is reshaping the industry’s approach to user experience, service delivery and customer engagement, setting new benchmarks for excellence and innovation.

The driving force behind innovation within the travel industry in 2023 has been Big Data. The ability to process and analyze vast amounts of data has empowered companies to understand and offer innovative products to customers. The application of data analytics extends beyond customer-facing features; it encompasses operational efficiency, market analysis, and strategic planning. As companies leverage these insights, they can create more tailored and diverse offerings, opening up new avenues for exploration and discovery. This innovation-centric approach is setting the stage for a future where travel is not only about where you go but how uniquely you experience it.

Looking ahead, the future of the Indian travel and tourism industry is marked by an exciting blend of growth, innovation, and delightful experiences. The industry’s commitment to leveraging technology and innovation is vital to sustaining this momentum. With a focus on technological integration, sustainable practices, and innovative thinking, the travel industry is poised to contribute significantly to India’s economic future. As we step into 2024, the industry stands at a juncture of transformation, ready to embrace new challenges and opportunities. The journey ahead promises not just growth but a redefinition of what travel means for India, both as an economic powerhouse and as a cultural mosaic.

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Tourism's contribution to India's GDP and employment falls 36.3% and 20.8%, respectively

On World Tourism Day, here's a look at the impact of Covid-19 on India's travel and tourism industry

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India: Travel and Tourism

Indian visitation to the United States grew from 1.12 million in 2015 to 1.5 million in 2019, and in 2018 India broke into the top ten visitation nations list for the first time. Tourism receipts from Indian visitors to the United States reached $16.5 billion in 2019, making India the fifth largest spending market.

Just 335,990 Indians traveled to the U.S. in 2020 (a decrease of 77 percent over the previous year) and 92,710 visited in the first quarter of 2021 (a decrease of 60 percent over the same period in 2020). The ongoing pandemic, the Presidential Proclamation prohibiting travel from India, and the cancellation of flights to the United States, make it difficult to predict visitation figures for the remainder of 2021. Industry sources, however, currently do not expect a return to pre-Covid aviation levels until 2024. The Travel and Tourism sector was hit hard in India itself, with an estimated 38 million people losing their jobs due to the pandemic. 

Outlook for Recovery of Travel

Travel and Tourism is particularly sensitive to individual perceptions of safety and security, and Covid-19 has severely impacted the sector in that regard. The industry is slowly working towards its response and recovery mechanism and is seeking assistance in the form of economic relief (e.g., the availability of low interest loans with flexible repayment options) and the easing of travel restrictions. The sector will continue to face ongoing challenges in the form of travel restrictions, testing and vaccination requirements, and quarantines rules.

Despite these challenges, the United States has remained a destination with high travel demand. Indians want to travel to the United States, and due to the severity of the pandemic in their country do not feel endangered in doing so. In 2020, 52 percent of Indians visiting the United States were leisure travelers, demonstrating that the U.S. remains among the top aspirational travel destinations for Indians. Many Indians traveled to the U.S. to receive their Covid-19 vaccinations, and travelers are circumventing the Presidential Proclamation by staying in alternate locations (e.g., Mexico) for 14 days. Additionally, the target segment of Indian travelers is expected to be fully vaccinated by the end of 2021.

India is one of the few countries where new routes have been launched during the pandemic.  Both American and Indian carriers have announced new flights, including:

  • United Airlines began its Chicago-Delhi route in December 2020 and will launch its San Francisco to Bengaluru (Bangalore) route in October 2021. 
  • Air India, India’s national carrier, launched its new San Francisco to Bengaluru and Chicago to Hyderabad routes in January 2021. 
  • American Airlines is scheduled for its India debut in October 2021, with two new routes:  New York’s JFK to New Delhi and Seattle to Bengaluru.  
  • Vistara Airways, one of India’s domestic airlines, has received approval for operating flights between the U.S. and India, and plans to launch a new flight between Newark and New Delhi beginning in October 2021.  

Air connectivity between the two countries is expected to increase in the future based on robust two-way demand, but it may take several years to rebuild flight inventories to pre-Covid levels.

As world economies ease lockdowns and travel restrictions, there is some optimism that travelers who have been at home for many months will begin to travel again. The industry expects domestic and regional tourism to rebound first, setting the pace for increased international tourism. 

For more information on opportunities in the above sector, please contact your nearest local U.S. Export Assistance Center or e-mail to Commercial Specialist Shibu Mathews in New Delhi.

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    Ask Skift: How Is India Marketing Tourism?

    Rashaad Jorden , Skift

    June 11th, 2024 at 10:53 AM EDT

    As India's role in the global travel industry continues to grow enormously, here's a look at how Indian authorities market tourism.

    Rashaad Jorden

    India’s clout in travel is booming, especially as the country’s growing middle class is poised to play a major role in the industry’s growth . India is also the world’s largest emerging outbound tourism market .

    But India has been prioritizing domestic tourism, having recently cut its overseas promotion budget by 97%. Of the 1.7 billion trips Indians took in 2022, 99% were domestic.

    As India’s travel and tourism industry is projected to generate nearly $24 billion of revenue in 2024 , how is India marketing tourism?

    We asked our intelligence chatbot Ask Skift the question. Ask Skift used information appearing in our past news coverage and research, and we also conducted additional reporting on the matter.

    What Ask Skift Said:

    India has been actively marketing its tourism through various strategies. According to articles from Skift published in May 2024:

    • The Indian Ministry of Tourism and state tourism boards have been participating in international travel trade events such as the Arabian Travel Market and IMEX in Frankfurt to attract international travelers .
    • The country has been promoting unexplored destinations like Lakshadweep and Ladakh to diversify its tourism offerings.
    • To facilitate foreign arrivals, efforts have been made to liberalize, streamline, and simplify the visa regime .
    • India has developed a national strategy for sustainable tourism with a goal to strive for carbon-neutral, and resource-efficient tourism while safeguarding natural and cultural resources. Goa state tourism has launched a regenerative tourism campaign to nullify the negative impact of tourism and make a net-positive impact on the environment and local communities.

    Ask Skift Is the AI Chatbot for the Travel Industry

    Go deeper into the business of travel with Skift’s new AI chatbot.

    What Else You Need to Know:

    India’s Union Budget for the 2024-2025 fiscal year included a big increase in funding , with Skift reporting that domestic tourism was the primary focus for Indian authorities.

    Himmat Anand, founder of A Dog’s Story, one the first chain of pet-friendly boutique hotels in India, said Indian authorities would emphasize religious tourism, which should give domestic tourism a boost.

    But Rajeev Kohli, joint managing director of Creative Travel India, believes Indian officials aren’t consciously marketing religious tourism.

    “The government has had a focus on religious sites as a part of large politics, but that is a bit different from marketing them as tourist places. The discourse is a bit convoluted,” Kohli said. “Pilgrimage tourism has always been significantly large … The major change has been the newfound media interest in the story.”

    Indian authorities have emphasized a growing emphasis on sustainable tourism. The Ministry of Tourism formed the National Strategy for Sustainable Tourism in 2022 as part of the industry’s strategy to bring sustainability into the mainstream. The ministry had launched the previous year the Travel for LiFe campaign to encourage responsible tourism.

    In addition, the Madhya Pradesh Tourism Board runs a Responsible Tourism Mission , which the agency’s Managing Director Sheo Shekhar Shukla said promotes organic farming and locally sourced cuisine. Visitors to the state have the opportunity to participate in activities such as pottery, bamboo craft and cooking.

    Indian officials are also promoting some of the country’s less visited destinations, with Prime Minister Narendra Modi notably promoting his January trip to Lakshadweep on social media . Google searches for the archipelago surged to an all-time high shortly after Modi’s visit. Online travel company MakeMyTrip reported a 3,400% increase in searches for Lakshadweep after the prime minister’s trip.

    However, India’s popular attractions aren’t poised to see the same level of promotion overseas. While Shukla said the Madhya Pradesh Tourism Board would participate in events such as ITB Berlin and the World Travel Market in London, the amount the Union Budget set aside for overseas promotion during the 2024-2025 fiscal year decreased substantially — a 97% reduction to roughly $361,000 (30 million rupees) .

    In addition, the Indian government has closed several India Tourism offices worldwide.

    “(Thirty million Indian rupees) for overseas tourism promotion is a joke, and make no mistake, the joke’s on us,” said Himanshu Dwivedi, director of Monkfoot Travels .

    Kohli cites a lack of political interest as the reason why the country hasn’t marketed itself heavily overseas.

    “I hope the new government will change that,” Kohli said. “We need political leadership that cares about doing their job. We need to allow our bureaucrats and policymakers some freedom to run their ministries and remove the level of political interference we currently have.”

    More From Ask Skift

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    Tags: ask skift , india , india travel , tourism marketing

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    • Travelling through time - The growth of Indian travel industry

    indian travel and tourism industry

    • Rahmatullah Shaikh ,
    • ETHospitalityWorld
    • Published On Nov 28, 2023 at 01:00 PM IST

    Joining the travel & tourism industry for many of the Baby boomers, was not a real passion but it so happened, while they were searching for a future source of income. However, I was fortunate to have a vision of tourism and was blessed enough to get a job of my choice in the Gulf Tourism Industry . I add here my observations on the growth of this wonderful industry, to which I have been connected for over 45 years. In India, during 1961-62, there was a drop in Foreign Tourist Arrivals. This prompted, in March 1963, for the Government of India, to appoint an Ad hoc committee on Tourism, named L K Jha Committee Their report suggested setting up of three government corporations to develop hotels, transportation and entertainment facilities, in order to get more tourists to India. It was the beginning of a new era. The travel agents started experiencing the growth of inbound and outbound travel. The process of arranging travel during this time was quite different from today, as it occurred before the widespread use of the internet and online booking platforms. These usages were not even visible on the horizon. Advt Travel Agents played a crucial role in helping people to plan and book their trips. IATA Travel Agents opened offices located in commercial areas, for the travellers to visit them and discuss their travel plans, face-to-face. Non IATA Agents were limited but all were heavily dependent on printed materials such as brochures and catalogues from airlines, hotels, and tour operators, advising on destinations, accommodation options, and tour packages. Booking airline tickets was a more manual exercise, compared to today's electronic ticketing systems. Travel agents would issue paper tickets, and changes or cancellations required direct communication with the airline. Travel agents assisted clients in obtaining passports and visas. Communication was primarily done through phone calls, snail mails, or personal meetings and not email or instant messaging payment was typically done in cash or cheques, at the travel agency office. Credit card usage was not as it is today. The process was more manual, and technology had not yet transformed the industry as it has in subsequent decades, Airlines would provide the agency with ticket stock and later their 'plate' so they could issue handwritten paper tickets. These chosen agents reported sales monthly and they then had 30 days to pay airlines. Most agencies were financially successful. An agent back in the 70s may have had lots of travel that was free and part of the job. Partly that was the reason why agents were paid so little because of the perks of job. However, that ended a long time ago and the wages never increased dramatically to compensate for it. Most agencies were financially successful. They were earning 9 percent commission. Ticketing agents were operating with booking record cards, manually checking flight and seat availability, filling in passenger info by hand. Advt Paper plane tickets were the norm and in case of loss of a ticket, huge amounts of documentation and delays used to happen. Planes had smoking and non-smoking sections. The Industry existed without Facebook, Insta, Twitter, Online Web Portals and Booking Engines. Social media didn’t exist. In a way, it was a blessing. Mass tourism didn’t exist or was considered as a damage to the growth of industry. A visa or stamp of a previously visited country could create problems for the tourists. The Israeli arrival stamp posed a serious problem for travellers to Arab countries. Likewise, Taiwan Visa created problems while entering Communist China . The grey market foreign exchange was a source of getting better value supporting travel budgets. Airport security didn’t exist. Tourists were out of touch with world news, depending on word of mouth, or the headlines of English language newspapers. Travelling felt safer, though it probably wasn’t. As always, the winds of change kept blowing and things continued to evolve. As a result, the GDS Global Distribution System and Computer Reservation System (CRS) were born. Introduction of computerised systems emerged to streamline reservation practices. The travel agency business has evolved significantly over time, adapting to changes in technology, consumer preferences, and the overall travel industry landscape. Now the Technology has made travel easier, for checking the weather, transportation, opening hours, and how to travel at any time. We can book and pay for travel within minutes. Satisfy our curiosity by looking up something on the social media and web portal. We can now communicate at no cost, or in a foreign language with the help of Google Translate . The wealth of information on the internet makes us a better-prepared and better-informed traveller. E-Boarding passes and web check in is now a norm that was earlier a part of long queues at the departure airports. Online Travel Agencies (OTA) and the Internet helped the growth. Increased competition and price transparency is an open knowledge. The arrival of smartphones, websites and mobile apps further transformed the industry. Travel agencies had to adapt to mobile-friendly platforms to remain competitive. Growing awareness of environmental issues, amongst eco-friendly travellers has led to an increased focus on sustainable and responsible tourism. In summary, the travel agency business has evolved from traditional storefronts to highly digital and personalised services. From humble beginnings to a robust and dynamic sector, the industry has not only adapted to changing trends but has also played a major role in shaping India's global image. As we reflect on its growth, it becomes evident that the weaving of technology, changing consumer preferences, and a commitment to sustainable tourism practices will continue to drive the industry forward. The future holds immense potential for the Indian travel sector, promising not only economic prosperity but also the enrichment of cultural exchanges and cross-border connections. Rahmatullah Shaikh is an assistant professor at the D Y Patil Deemed to be University School of Hospitality & Tourism Studies, Navi Mumbai.

    • By Rahmatullah Shaikh ,
    • Updated On Nov 28, 2023 at 01:00 PM IST

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    Top 10 countries for travel and tourism in 2024: Where does India rank?

    10 best countries to travel in 2024: as the travel and tourism industry recovers from the pandemic, here are the top 10 countries for globetrotters in 2024.  .

    indian travel and tourism industry

    The World’s Top Travel Destinations for 2024: The travel and tourism industry has significantly contributed to the global economy, with millions of people travelling to various destinations worldwide each year. Despite the challenges posed by the pandemic, the industry is set for a significant rebound and is expected to drive global international tourist arrivals. According to the World Economic Outlook Report, the tourism sector grew by 2.9% in 2024 and by 3% in 2023.

    The World Economic Forum, in its recently released Travel and Tourism Development Index (TTDI), shares the top countries gaining popularity in the travel and tourism industry. Notably, in Southeast Asia, India ranks 39th as the TTDI’s top lower-middle-income economy. India’s strong Natural (6th), Cultural (9th) and Non-Leisure (9th) resources drive its travel industry, with the country’s being only one of three to score in the top 10 for all the resources pillars, the WEF said.

    indian travel and tourism industry

    The TTDI measures the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country. Among the 119 countries, here are the top 10 countries for travel and tourism in 2024 attracting travellers from all over the globe.

    The top 10 countries for travel and tourism in 2024 are:

    Source: World Economic Forum, compiled by the United Nations World Tourism Organisation.

    1. The United States of America:

    United States of America

    The United States remains a top travel destination, ranking first in the TTDI for 2024. With iconic landmarks like the Statue of Liberty and the Grand Canyon, the US offers visitors a diverse range of experiences, from vibrant cities to stunning natural wonders. In 2023, the US welcomed over 80 million international tourists, contributing $1.8 trillion to the country’s GDP.

    Festive offer

    Spain, ranked 2nd in the TTDI, continues to captivate travellers with its architectural marvels, such as the works of Antoni Gaudí in Barcelona and the historic Alhambra in Granada. The country’s stunning beaches, lively festivals, and delectable cuisine make it a top destination for tourists seeking a blend of history, culture, and relaxation. According to the TTDI 2024, Spain received over 70 million international visitors in 2023, generating $150 billion in tourism revenue.

    Japan (Source: Freepik)

    Japan, ranked 3rd in the TTDI, offers a unique blend of ancient traditions and modern innovations, from the serene temples of Kyoto to the bustling streets of Tokyo. The country’s rich cultural heritage, delicious cuisine, and stunning natural landscapes make it a must-visit destination for travellers. In 2023 (TTDI 2024), Japan welcomed over 30 million international tourists, contributing $300 billion to its economy.

    France (Source: Freepik)

    France, ranked 4th in the TTDI, showcases the elegance of Paris and the charm of its countryside, promising a journey filled with art, history, and gastronomy. From the iconic Eiffel Tower to the picturesque villages of Provence, France offers a timeless appeal that attracts over 80 million visitors annually, generating $200 billion in tourism revenue (TTDI 2024).

    5. Australia:

    Australia (Source: Freepik)

    Australia, ranked 5th in the TTDI, offers a kaleidoscope of natural beauty and wildlife encounters, from the Great Barrier Reef to the Outback. The country’s vibrant cities, such as Sydney and Melbourne, also offer a dynamic mix of culture, cuisine, and entertainment for travellers. According to the TTDI 2024, Australia welcomed over 8 million international tourists in 2023, contributing $60 billion to its GDP.

    6. Germany:

    Germany (Source: Freepik)

    Germany, ranked 6th in the TTDI, presents a dynamic travel experience blending tradition with innovation. The country’s rich history, delicious cuisine, and stunning natural landscapes make it a popular destination for travellers seeking a unique cultural experience. In 2023 (TTDI 2024), Germany received over 35 million international visitors, generating $100 billion in tourism revenue.

    7. United Kingdom:

    United Kingdom (Source: Freepik)

    The United Kingdom, ranked 7th in the TTDI, offers a blend of historic sites, such as Edinburgh Castle and Stonehenge, and the rugged beauty of Scotland’s Highlands. The country’s vibrant cities, including London and Edinburgh, also attract visitors with their culture, entertainment, and shopping. According to the TTDI 2024, the UK welcomed over 30 million international tourists in 2023, contributing $120 billion to its economy.

    China (Source: Freepik)

    China, ranked 8th in the TTDI, provides a fascinating juxtaposition of ancient wonders, like the Great Wall, and the modern skyline of Shanghai. The country’s diverse landscapes, from the Himalayan mountains to the tropical beaches of Hainan Island, offer a range of experiences for travellers. In 2023 (TTDI 2024), China received over 50 million international visitors, generating $200 billion in tourism revenue.

    Italy (Source: Freepik)

    Italy, ranked 9th in the TTDI, promises a journey through art, history, and culinary delights, from the ancient ruins of Rome to the romantic canals of Venice. The country’s stunning coastlines, charming villages, and world-renowned wine regions make it a top destination for travellers seeking a blend of culture and relaxation. According to the TTDI 2024, Italy welcomed over 60 million international tourists in 2023, contributing $150 billion to its GDP.

    10. Switzerland:

    Switzerland (Source: Freepik)

    Switzerland, ranked 10th in the TTDI, offers a picturesque escape into nature and culture with its Alpine landscapes, pristine lakes, and charming cities like Zurich. The country’s efficient transportation system, high-quality accommodations, and diverse range of activities make it an ideal destination for travellers seeking a well-rounded experience.

    Cherry Gupta

    Cherry Gupta, a Digital Journalist at The Indian Express, is responsible for crafting compelling narratives, uncovering the latest news and developments, and driving engaging content based on data and trends to boost website traffic and audience engagement. One can connect with her on LinkedIn or by mailing her at [email protected].   ... Read More

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    indian travel and tourism industry

    Modi govt 3.0: Making Incredible India tourism a national priority

    A s a first, budgetary allocation for the Union ministry of tourism must be enhanced. A National Tourism Policy must be launched with much fanfare at the earliest. There is need for tourism synergy at the national level, and the government should consider putting tourism on the Concurrent List. An open skies policy and enhanced air connectivity across the country will expedite the intended boost for tourism. 

    Visitor experience

    The 'visitor experience' in India must be taken to the next orbit. As per Indian travel industry estimates, approximately 200 tourism products provide 80 per cent of the business. We need to focus on these products and make them the best in the world. Let us make 'Incredible India' speak for itself—a safe, clean and transformational experience. Enhance connectivity and facilities at tourist destinations, including better roads, airports and public amenities, to provide seamless travel and showcase India as an emerging global power. 

    We must leverage our rich cultural, natural and historical heritage, identify 100 new tourism products, and develop them to international standards in a sustainable manner while being mindful of the carrying capacity. As an example, the Harappan site Dholavira near the Rann of Kutch in Gujarat could be developed into an international tourism hub.

    The Himalayan region has huge potential for adventure tourism, which must be developed in a sustainable manner. Expediting the mega trails for trekking and adventure in the Himalayan region and the Ganga nature and heritage trail will be game changers. After 'Swachh Bharat', 'Surakshit Bharat' is the way forward. India must become the safest place in the world for travellers, especially women. 

    Ease of travel

    India must become a 'hassle-free travel experience'. Our online visa process needs an urgent review.  The government could consider offering visa-on-arrival facilities and shortening of processing time. This will attract more international tourists. The governments of Thailand and Sri Lanka have recently waived visa fees for Indian tourists. To expedite the post-pandemic recovery of the sector, the government could consider free visa on arrival for tourists from the top 10 source countries and top 10 emerging countries for the next three years. Entry and exit from India, safety and security of travellers, road, rail and air travel infrastructure, and health and hygiene have to add up to make 'Incredible India' a seamless travel experience. 

    WEF ranking

    India's ranking in the World Economic Forum's Travel and Tourism Development Index has improved to 39 in 2024, from 54 in 2021. While our natural, cultural and non-leisure resources are ranked in the first 10, India must endeavour to be among the top 10 on the index by 2030. The ranking is based on five dimensions, 17 pillars and 102 indicators, and we must focus on each of these to create a world-class tourism experience. Skill development, capacity building, digital transformation, leveraging technology and focused masterplans for niche tourism segments, such as adventure, MICE (meetings, incentives, conferences and events), wellness, cruise, heritage, wildlife, medical, and special interest tourism, are critical. 

    Major promotion

    The Incredible India campaign needs a makeover, besides a global launch of Incredible India 2.0. Major tourism promotion in our missions abroad, appointing marketing agencies, reopening our overseas tourism promotion offices, focus on tourism promotion in 20 key source markets and 10 emerging markets, digital marketing, electronic media promotion, roadshows, marketing incentives for tourism MSMEs and support for tourism promotion must be high-priority areas. 

    Sustainable tourism

    The tourism ministry has set up the National Board for Sustainable Tourism. Sustainable practices in tourism, carrying capacity determination, and implementation of policies that promote eco-friendly tourism in order to protect natural and cultural heritage while ensuring long-term viability of tourism destinations must be a priority. The government should encourage tourism enterprises to adopt sustainable practices, offer incentives for eco-friendly initiatives and enforce environmental regulations. Government initiatives, such as the Sustainable Tourism Criteria for India and Travel for LiFE, must be promoted.

    Miles to go

    Streamlining and simplifying regulatory processes at the national and state levels will significantly enhance ease of doing business, policy consistency, easier access to finance, creating a nurturing and supportive ecosystem for tourism MSMEs, simplifying taxation, providing data and insights, digital transformation of the tourism sector, a resolute crisis management mechanism, infrastructure and incentives for rural tourism, tourism to border areas and vibrant villages.

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    Modi govt 3.0: Making Incredible India tourism a national priority

    A new itinerary for the tourism industry

    McKinsey spoke with more than 5,000 travelers across geographies and generations as part of a recently published survey  that reveals clear differences in behaviors, motivations, and expectations among a diverse set of tourists. On this episode of The McKinsey Podcast , McKinsey’s Margaux Constantin  and Jasperina de Vries speak with editorial director Roberta Fusaro about data that can help travel and tourism companies tailor their offerings and realize more bookings, higher satisfaction, and, ultimately, repeat visitors.

    In our second segment, from our CEO Insights series , McKinsey senior partner Kurt Strovink  shares an approach to help CEOs connect with stakeholders—a relationship that’s prized but too often elusive.

    This transcript has been edited for clarity and length.

    The McKinsey Podcast is cohosted by Lucia Rahilly and Roberta Fusaro.

    What motivates travelers to hit the road?

    Roberta Fusaro: We’re here to talk about the way we travel today, specifically about a piece of research that McKinsey did with more than 5,000 travelers from China, Germany, the United Arab Emirates, the United Kingdom, and the United States.

    We asked them about the motivations, behaviors, and expectations behind their travel experiences. One of the more interesting findings from the report is that travel isn’t just of “interest,” and I’m putting that word in air quotes. It’s becoming a priority for a range of consumers, including me. Margaux, why is this so?

    Margaux Constantin: We clearly see that for people all over the world, travel has never been so top of mind . And that might be because of more than just the pandemic. About two-thirds of the people we interviewed said they’re more interested in travel than ever before.

    If you take the younger generations, that number is even higher: 76 percent have never been so keen to travel. But that’s something that we’ve seen happening over the past decade, where there’s been a shift from spending on possessions to spending on experiences, particularly for the younger generations. Maybe the pandemic was a bit of a catalyst. But that really comes from a much longer cyclical trend in the industry.

    Roberta Fusaro: What differences did you see among travelers of different ages? What matters most to Gen Z, for instance?

    Jasperina de Vries: Gen Zers are interesting because travel has become a top priority for them. In fact, last year, millennials and Gen Zers took an average of nearly five trips versus less than four for Gen Xers and baby boomers.

    The number-one consideration we clearly see for Gen Zers when selecting a destination is experiencing something new. For the younger generations, there’s a real draw toward using travel as a means to interact with different cultures and explore the unknown.

    That makes international travel increasingly appealing for these younger generations. International travel feels more within reach for them. The cost has come down, especially with the abundance of low-cost airline seats. Travel has also become more convenient. It’s easy for them to get oriented in a destination before they travel. Mobile connectivity overseas has become cheaper. It’s easy to translate things when you get there.

    Social media is also helping younger generations shape their ideas about faraway destinations when they’re thinking about their next trip. And 92 percent of younger travelers reported that they were influenced by social media, in that sense. Social media makes the world feel smaller and bigger at the same time.

    Roberta Fusaro: What about Gen X and boomer travelers?

    Jasperina de Vries: For the older generations, the number-one travel motivator is friends and family—to either visit them or travel with them. That motivator is put far ahead of visiting a new place or going to a place that everybody’s talking about.

    Older generations are also very strategic about how they spend. Only 7 percent of the baby boomers we surveyed will go all out when they travel. But that doesn’t mean that they’re unwilling to spend, because baby boomers do spend three times more on travel than Gen Z.

    They are willing to make their trip easy and convenient. They are willing to spend to make things less burdensome. They’re willing to travel in the offseason. They’re less likely to try and save by taking longer or connecting flights. And they are almost twice as likely as younger generations to cut expenses when needed, but they place emphasis on the quality of their accommodations.

    Margaux Constantin: What’s interesting is that baby boomers spend three times more on travel than Gen Z. But Gen Z spends a much higher share of its disposable income on travel. That’s the big paradox here.

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    The role of technology in travel.

    Roberta Fusaro: How do different generations incorporate technology into their travel plans?

    Margaux Constantin: What we see with older generations is quite a bit of fatigue with technology in the travel process and a feeling that if you’re not a digital native, the steps of traveling have become quite challenging. That may or may not be correlated with the fact that they tend to visit destinations they’re more familiar with, that they have been to already, rather than explore new destinations. So they can rely a bit less on those tools.

    What that means is that travelers still like to have a digital and analytics-informed travel journey and travel process, but that doesn’t have to get in the way of human interaction. What we see with older generations is frustration that every site or attraction you try to go to now [involves] a machine that they’re struggling to interact with or to get the right information from. And that’s where some of the disconnect can happen.

    Traveler priorities across different global markets

    Roberta Fusaro: The survey also gets into some of the differences among travelers in different markets. We’re looking at travelers in China, the US, the Emirates, and some Europeans. What did you see there? What are travelers in different markets more or less likely to prioritize?

    Margaux Constantin: What’s quite interesting here is despite the world becoming more globalized or feeling like it’s become more globalized, the differences in travel preferences across those markets remain really strong.

    If you start with the Chinese travelers, they are changing a lot. There is still a very large chunk of that market that wants to prioritize these iconic travel experiences, these famous bucket list [trips]. About 69 percent of our Chinese respondents want that bucket-list-type holiday. For North American and European travelers, it’s only 20 percent.

    At the same time, we also see in the Chinese market a real enthusiasm and passion, fueled by the pandemic, of rediscovering their domestic heritage and traveling much closer to home. We see the Chinese domestic-travel market growing at about 12 percent in the coming years and overtaking, very quickly, the United States as the world’s largest domestic-travel market.

    If you compare this with travelers from the United Arab Emirates, there is also a strong preference, closer to the number of Chinese travelers, to visit iconic destinations. But what they’re really after are active, sport-heavy holidays—being outdoors, hiking, and doing some sort of exercise. On the other end, Europeans and North Americans are a lot more homogeneous in their preferences; 40 percent see their vacations as a way to just get away from it all, which is two times higher than the share of Chinese or UAE-based respondents. And, of course, the best way to get away from it all is the traditional beach holiday, which remains the top destination for those markets.

    Seven traveler archetypes

    Roberta Fusaro: As part of the research, you identified seven clusters of travelers, all of whom share a lot of the same attitudes and motivations toward travel. These include sun-and-beach travelers, culture-and-authenticity seekers, strategic spenders, trend-conscious travelers, cost-conscious travelers, premium travelers, and adventure seekers. Let’s tick through each and the preferences embedded within them.

    Jasperina de Vries: This is my favorite topic for two reasons. One is that these personas are intriguing. And two, there’s an especially key insight for travel players on going to the next level of customer understanding or guest understanding, in a similar way as we’ve done here in the research.

    We used machine learning to identify clusters of our respondents with similar behaviors and attitudes and then looked at the key differentiators between these groups. There are seven in total. One cluster is the culture-and-authenticity travelers. They love to sightsee, they prioritize new destinations, and they’re willing to spend on experiences.

    That contrasts with, for example, the strategic spenders, who are very careful about splurging on experiences and who also try to save on accommodations and flights. Another one that I would highlight is the trend-conscious jet-setters, who are ready to spend and who are very attentive to recommendations from friends and social media. These travelers would prioritize the more iconic or popular destinations.

    But a key learning for players in the sector is to use the data to better understand the exact traveler archetype that you are trying to attract and learn how to meet their needs.

    And in this sector, companies don’t always interact with their guests every day, as they do in, say, retail. But, still, our clients are surprised by how much they do know about their customers and how much privileged insight they have. Our research was based on 5,000 respondents. But imagine it’s hundreds of thousands or even millions of customers you have touched and what you can learn from them.

    Using data to tailor travel experiences

    Roberta Fusaro: Let’s pretend I own a company that organizes travelers around large safari expeditions and sightseeing experiences. How could I use the information in this report to boost sales or engagement?

    Jasperina de Vries: I hope that the research opens up the aperture for many players in the industry , like the safari provider, to think more deeply about the different pockets of demand out there and to build up their understanding of the pockets that they have not yet been specifically targeting.

    And this is the other point: it’s important to build out the understanding of your customer base and, from that, think through how that allows you to adjust your marketing approach.

    One of my clients, for example, is looking to increase direct bookings. That’s something that many of our listeners will try to pursue. What my client does is look at a cluster of guests that already has a high degree of direct bookings. That cluster is made up of relatively similar people, but there are also people in that cluster who do not yet book direct.

    The good thing is they look like those who do. And it’s relatively easy to nudge them into the type of behavior that you would ideally see, which is booking direct versus booking through an OTA [online travel agency]. And you can do the same with upselling and cross-selling, for example. This is more straightforward than you think, and it’s driven by the customer data you have today.

    It’s important to build out the understanding of your customer base and, from that, think through how that allows you to adjust your marketing approach. Jasperina de Vries

    Margaux Constantin: Adding further to this notion of the travel safari company, and being a bit more focused on older generations, because they do spend more than younger generations. They spend three times more. But if you start thinking, “Maybe there is a new market in the younger generations and Gen Z because they are willing to spend disproportionately on experiences,” then you could engineer experiences for them. They might come on a low-cost flight, and they might stay in cheaper accommodations, but they will spend the $500 entrance fee to go gorilla tracking and have that experience.

    There are these pockets of high willingness to spend. And that means you may also want to rethink your accommodation offering to be cheap without feeling cheap. It’s a lot about smaller rooms, shared rooms, but also high-quality shared spaces, high-quality open spaces, coworking spaces where people can mingle. We’re starting to see some players propose interesting things there.

    Roberta Fusaro: How much of that is happening within the ecosystem?

    Margaux Constantin: A lot of our clients are not sufficiently mining all the insights they have on what their travelers need. And there are so many more insights they could get. But a lot of our clients are also not sufficiently reactive or agile enough to act on those insights.

    So what you’re describing is an example of such an action. But it could also be to launch certain promotional packages, which is easier, or redo parts of your website, which is also easier. The translation to action remains slow.

    It usually takes three years to build a hotel. In those three years, how do you keep evolving your builds to meet the evolving needs of your travelers or, at least, build things in a way that gives you enough agility once the property opens?

    Jasperina de Vries: But, to your point, Roberta, in the ecosystem orchestration , we don’t see a lot of syncing up among players yet. But there is an increasing eagerness to grow tourism destinations, because folks are seeing that it’s important to build out full itineraries to make the most out of that first stay so that the traveler takes away a positive experience and goes back home and talks about it. It’s important for growing markets to build everything out in sync. And we see a lot of eagerness among stakeholders to get there. It’s easier said than done, of course.

    New opportunities

    Roberta Fusaro: Are new businesses  springing up out of this renewed zest for travel?

    Jasperina de Vries: For this year, we expect that tourism will be a full 9 percent of global GDP. So it’s creating a lot of new economic activity. And there is a lot of opportunity for stakeholders who can cater to the preferences of new travelers.

    Roberta Fusaro: Some travel companies  struggle with their data strategies. If you’re somewhere in the middle of the journey with your data strategy, are there things that you can do right now to start to understand customers better?

    Jasperina de Vries: Hospitality clients are surprised by how much they can do with the data and privileged insights they already have as first parties versus intermediaries. For example, we helped one company build out something basic to start with: sending out three types of messages to customers based on a best guess of their propensity to travel to a particular destination.

    We sent one set of customers an email about news from that destination and included a convenient travel offer for them. The second group we wanted to convince, so we sent them an email before their next estimated travel date and included a more price-sensitive offer. And for the third group of customers, who we think might not be highly likely to travel but who could be tempted, we tried to attract them with a special offer.

    So this is not about building out a full set of email journeys and cross-channel journeys. This can start really small and still be effective.

    Memorializing trips through social media

    Roberta Fusaro: Jasperina, you’d mentioned the use of social media among Gen Z travelers. I’m curious about this idea of memorializing the travel experience and how providers and players in the tourism ecosystem could think about that differently.

    Margaux Constantin: In our research, we see that more than 70 percent of travelers say they’ve posted photos of their vacation on social media in a very systematic way. And, of course, for younger generations, that share is north of 95 percent. It’s absolutely become the norm.

    Then, if we go back to the times of even ancient Greece, you will find various ways of capturing travel memories in some shape or form. As we mentioned earlier, more than 90 percent of Gen Z travelers will be influenced by social media posts when deciding to visit a certain place, especially posts they see from friends and families or from celebrities they trust.

    That creates several opportunities for the industry. Definitely everything related to social media  strategy, influencer strategy, encouraging folks who come to visit to repost about the hotel, repost about the attraction, repost about the destination, is key, given how big this is in the consideration funnel of travelers.

    But this is also creating opportunities for new businesses to emerge in this space of journaling, if you like. And we see microblogging platforms trying to give travelers a different way of sharing with friends and family outside of the traditional social media platforms, which is also interesting.

    Roberta Fusaro: I’m feeling bad for the seaside sketch artist who you would walk up to, and they would sit there with their pen . . .

    Margaux Constantin: Actually, that one, probably, has never been a bigger celebrity. There is so much they can do on social media, even if they have limited drawing skills. There’s a big career as an actor in that space.

    The impact of gen AI

    Roberta Fusaro: Jasperina, you mentioned the use of generative AI [gen AI] on the back end of travel experiences. Are there other applications of gen AI that you could see going forward?

    Jasperina de Vries: We saw in the survey that about a quarter of travelers have tried using AI or gen AI to plan a trip, and 80 percent said that they would be interested in trying to use AI or gen AI to plan a trip. So, there’s an expectation that the use will grow.

    We also see that the first versions of gen-AI-based travel planners  can only do so much. So this is definitely an evolving space that still needs time. But it is quickly evolving.

    And we talked about some of the use cases there. The gen AI piece that can come in is, for example, about making it easier to create marketing content. Going forward, we should also be mindful of the role that AI and technology plays and the implication it has on the workforce.

    What we continue to see for hospitality and tourism is if there’s one sector where the human touch and the tech enablement of that remains so important, it’s hospitality because this is a moment in time for all travelers, where they are keen to experience something new and they also want to be taken care of. And so we expect that frontline staff, travel advisers, etcetera, will continue to have an important role in that travel or booking experience , empowered by technology.

    If there’s one sector where the human touch and the tech enablement of that remains so important, it’s hospitality because this is a moment in time for all travelers, where they are keen to experience something new and they also want to be taken care of. Jasperina de Vries

    Destination overload

    Roberta Fusaro: We’ve been talking a lot about growth in the market. Is there something that the service providers or players in the tourism ecosystem have to be aware of, given all this fast growth?

    Margaux Constantin: The growth is not very evenly spread. What we tend to see is if you take the 15 destinations today that have the highest concentration of visitors per square kilometer, these are also the destinations that I expect to see the fastest growth of visitors in the coming years, so anything leading to 2030 from 20 percent further growth, all the way to 86 percent for places like Marrakesh and Morocco.

    At the same time, travelers say that when there’s just a bit too much of a crowd, it has a highly negative impact on their travel. Seventy percent of our respondents mentioned negative experiences related to overcrowding in their travel in the last 12 months.

    So as we grow, we really need to put in place the right measures and be very thoughtful  about how we ensure that visitors have the best travel experiences they can—whether it’s in more rural, quiet areas, but also in some of the most visited places—and really keeping that strong visitor experience.

    Why CEOs must connect with stakeholders

    Lucia Rahilly: Next up, senior partner Kurt Strovink says CEOs understand the importance of connecting with stakeholders, but too few know how to do it.

    Laurel Moglen: Stakeholders, like investors, customers, the media, and employees, all want to hear from CEOs on a wide range of issues. Kurt, through your conversations with CEOs, how important is it for CEOs to engage with the public?

    Kurt Strovink: It’s very important, and it’s becoming more important as time goes on. Communications and stakeholder engagement is one aspect that many CEOs are less prepared for, relative to what it takes. It’s not something they’ve necessarily encountered in previous roles before becoming CEO. And the enormity of the number of stakeholders, the balance between them, and how to manage and negotiate this is something that I think dawns on new CEOs quite quickly.

    Our own research suggests that 58 percent of CEOs think that external affairs is a top priority for them. But only 12 percent feel that they’re handling it really well. I would also say some of the leading CEOs, those who have become skilled at being a CEO over time and some of who we’ve profiled in our book CEO Excellence , have also drawn attention to this priority. 1 Carolyn Dewar, Scott Keller, and Vikram Malhotra, CEO Excellence: The Six Mindsets That Distinguish the Best Leaders from the Rest , New York: NY, Scribner 2022.

    Satya Nadella, the CEO of Microsoft, has talked about how important it is to be able to manage multiple constituents in the world—team members, employees, customers, governments. As a CEO, you need to create that sort of continuous balance between multiple constituents.

    Laurel Moglen: What’s the best way for leadership to adapt to this priority?

    Kurt Strovink: In terms of how to adjust to this priority, we’ve tried to synthesize our perspectives into an approach called EDGE. It’s an acronym that encompasses four ideas for CEOs to understand what’s important.

    The first idea is expanded . CEOs must think about themselves as a bridge to the outside world. They must recognize that they’re kind of public in all their comments at all moments. That’s a different mentality than thinking about yourself as a personal leader inside of a company, where your words won’t travel as far.

    The second idea is distinctive , by which we mean do only what the CEO can do or try to think about those things that can’t be delegated. There are many things that you can have other people do on your behalf, but some of the communication needs to be from the CEO seat itself.

    The third idea is growth oriented . Some of the best communicators and stakeholder balancers think a lot about growth in their communications. It’s something that’s ever present in the way that they interact with the outside world. It’s part of how they emphasize the upside of their companies, their contribution to the world.

    The fourth and final idea is engagement . This means going beyond influencing stakeholders to try to truly inhabit the mindsets that they have, meet them on their own terms, and work from there.

    This is one way to think about four important best practices that we think of in the context of communications with different constituent groups and to adapt to them.

    Laurel Moglen: As leaders incorporate all that EDGE means into their communications platforms, what strategies have you seen work for them?

    Kurt Strovink: I have seen a few strategies that work for CEOs and a few markers for progress as CEOs become more excellent on this dimension. I often will observe a CEO’s narrative itself—the way they talk about what they’re doing, what they’re here to do, what their company’s purpose is, how they engage their own employees—and I will listen for how proprietary that vocabulary is and how authentic it is to them. And we often find that CEOs who become skilled at this will have certain terms that they put more weight into, certain things that become meaningful. So this idea of the singular narrative with proprietary language is hard to encourage anybody to do, but we notice it as a distinctive strength.

    I also find that CEOs need creative ways to enrich this narrative over time, to have it take in additional elements of what happens around them. They must repeat this narrative, sometimes more than they’d like to in different settings. They should find energy and enthusiasm and vitality in doing that authentically. It’s very important to see yourself as a real communicator of this message in broadcast and in narrowcast forms. The former CEO of US Bancorp, Richard Davis, said the holy grail for him was to have 12 people on a management team who were equal voices and equal storytellers.

    What that means is that there are people who can speak for the team, for the company, not just for themselves. Sometimes, you see CEOs who develop enough of a narrative that they get another dozen people on their management team to really make it theirs and sound similar themes.

    These CEOs create propagation that’s much greater inside the company and outside the company because they have other people and their management team who are fully resonant with those messages.

    One last thing that I’ll share from our work with CEOs is what we call the four Ws: “who” “why,” “what,” and “when.”

    You have to think about “Who you are?” or “Who do you want to be?” You’re really thinking about the identity of the organization separate from the initiatives and activities that are under way.

    You also have to think about the why. “Why is it there?”

    This gets us to the what. “What is the purpose?” or “What’s a larger mission that motivates?” This leads you to think about the series of things you’re doing. And that ladders down into many aspects of strategy, initiatives, and the like.

    Lastly, you think about the timing, the execution of the plans, which is summarized by the when.

    But I do see a failure mode in CEOs. They’re very good about the what and the when, though maybe not as thoughtful as they could be about the who and the why.

    And in self-propelled organizations, especially organizations of high talent, there’s tremendous latent potential in deeper dialogues about the “who” and the “why.”

    I would encourage all CEOs to think about all four Ws evenly as they think about building some of these messages, these narratives of meaning, and as they chart the course to figure out what they’re solving for with so many different constituencies.

    Kurt Strovink is a senior partner in McKinsey’s New York office, Margaux Constantin is a partner in the Dubai office, and Jasperina de Vries is an associate partner in the Amsterdam office. Lucia Rahilly is the global editorial director of McKinsey Global Publishing and is based in the New York office, and Roberta Fusaro is an editorial director in the Boston office.

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    ITB India 2024 Conference to reveal key trends in the South Asia Travel Market

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    ITB India 2024 Conference will gather travel industry professionals from 11 – 13 September 2024, at Jio World Convention Centre in Mumbai, India. Under this year’s theme “Future-Ready Travel: Embracing Innovation, Sustainability, and Global Connectivity”, thought leaders and experts from the MICE, Corporate, Leisure and Travel Technology sectors will provide in-depth perspectives on trends, challenges, and the future of the fast-growing Indian and South Asian travel market across three conference tracks.

    India’s growing outbound and domestic travel

    India’s travel industry is on a remarkable growth trajectory, with total travel expenditure set to reach $410 billion by 2030 [1]  and outbound travel expected to surpass 80 million travellers by 2040 [2] . This growth in demand has reignited the industry’s focus on targeting travellers from this dynamic region. In light of this, the conference agenda promises to guide the global travel industry on current travel expectations and future trends, focusing on Indian and South Asian outbound and domestic travel. The second in-person edition of the ITB India Conference will cover a wide range of topics including adapting to changing contexts, emerging trends, and evolving consumer expectations, MICE tourism in South Asia in 2025, digital transformation in corporate travel, travel in the age of ChatGPT, the impact of smart technology on the hospitality industry, outlook and trends in the travel industry, as well as the interface between technology and the future of tourism.

    Among the local and international heavyweights who have confirmed their attendance are Krishna Rathi, Senior Country Director – India Sub Continent & Maldives, Agoda; Harshad Donde, Country Director, India, BCD Meetings & Events; Atul Jain, Chief Operating Officer, BWH Hotels – India, Bangladesh & Sri Lanka; Santosh Kumar, Country Head – Indian sub-continent & Indonesia, Booking.com; Prahlad Krishnamurthi, Chief Business Officer, Cleartrip; Kiran Bhandari, Director, India Office – Dubai Business Events, Dubai Department of Economy and Tourism; Darshana Shirodkar, Senior Director, Lodging Market Management – Southeast Asia and Indian Subcontinent, Expedia Group; Jude D’Souza, Meeting & Events Leader, India, FCM Meetings & Events; Vikram Cotah, Chief Executive Officer, GRT Hotels & Resorts; Neelu Singh, Senior Vice President APAC & Regional Lead Strategic Accounts, HRS Group; Mufaddal Dahodwala, Managing Partner, ICE India; Amaresh Tiwari, Vice Chairman, India Convention Promotion Bureau (ICPB); Indiver Rastogi, President & Group Head – Global Business Travel, Thomas Cook India Limited; Neil Patil, Founder & Director, Veena World; and Sunila Patil, Founder & Director, Veena World.

    Three Conference Tracks Set the Stage for Valuable Insights: Knowledge Theatre, MICE Show India and Travel Tech India

    As ITB India’s premier conference track, the Knowledge Theatre will host C-suite leaders and renowned industry experts who will share their strategic insights on the outlook of travel, present real-world case studies and provide views on the key considerations of today’s travellers. Attendees can look forward to learning about the latest trends and strategies shaping the future of travel, as well as the challenges and opportunities in different segments of the travel industry – from leisure to adventure, from luxury to budget.

    MICE Show India will set the focus on MICE & Corporate Travel, where leading MICE and corporate travel executives from convention and venue bureaus, meeting planners, event organisers, MICE technology, travel managers and travel management companies deliver insights into the transformative innovations that are reshaping the MICE and corporate travel industry in various conference sessions. As this year’s Knowledge Partner, the Network of Indian MICE Agents (NIMA) will be curating sessions aimed at the MICE audience. They will also look at the pressing issues and challenges currently facing the industry, as well as the opportunities that lie ahead for the vibrant industry in India and South Asia.

    Travel Tech India will give valuable insights to digital travel leaders. Leading travel tech experts and innovators will share their views on the impact of cutting-edge technology on enhancing the customer experience in the travel industry. Attendees can expect to hear from visionary speakers who will share their perspectives on the future of travel technology and gain insight into the unique challenges and opportunities in the travel technology landscape.

    Special rates are available for exhibitors: ITB India 2024 offers an Early Bird promotion: By registering before 15 July, exhibitors will receive discounted rates on booth registration and gain access to the show floor, conferences, pre-scheduled meeting slots with buyers. .

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    Contribution of travel and tourism to GDP of India 2019-2022

    Contribution of the travel and tourism sector to the gdp of india from 2019 to 2022, with projections for 2023.

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    Statistics on " Travel and tourism in Finland "

    • Share of the GDP of the tourism sector in Finland 2013-2028
    • Absolute economic contribution of tourism in Finland 2014-2029
    • Expenditure on international tourism in Finland 2014-2029
    • Monthly arrivals in tourist accommodation in Finland 2021-2023
    • Travel product online bookings in Finland 2024
    • Number of international arrivals in tourist accommodation in Finland 2012-2022
    • Number of overnight stays in Finland 2023, by country of origin
    • Number of airport passengers in Finland from 2016-2022, by airport
    • Passenger traffic in ports of Helsinki, Finland 2017-2022, by route
    • Number of domestic arrivals in tourist accommodation in Finland 2012-2022
    • Number of domestic leisure trips in paid accommodations in Finland 2012-2022
    • Number of outbound trips from Finland 2013-2023
    • Number of outbound trips from Finland 2013-2023, by type
    • Number of outbound leisure trips from Finland 2022, by destination
    • Number of outbound business trips from Finland 2022, by destination
    • Number of accommodation establishments in Finland 2022, by type
    • Number of hotels and similar accommodation in Finland 2012-2022
    • Number of hotel rooms in Finland 2012-2022
    • Hotel overnight stays in Finland 2023, by country of origin
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    • Hotel bedroom occupancy rate in Finland 2012-2022
    • Bed-place occupancy rate in hotels in Finland 2012-2022

    Other statistics that may interest you Travel and tourism in Finland

    • Premium Statistic Share of the GDP of the tourism sector in Finland 2013-2028
    • Premium Statistic Absolute economic contribution of tourism in Finland 2014-2029
    • Premium Statistic Expenditure on international tourism in Finland 2014-2029
    • Basic Statistic Number of arrivals in tourist accommodation in Finland 2012-2022
    • Basic Statistic Monthly arrivals in tourist accommodation in Finland 2021-2023
    • Premium Statistic Travel product online bookings in Finland 2024

    International tourism

    • Basic Statistic Number of international arrivals in tourist accommodation in Finland 2012-2022
    • Basic Statistic International visitor arrivals in Finland 2022, by country of origin
    • Basic Statistic Number of overnight stays in Finland 2023, by country of origin
    • Basic Statistic Visitor arrivals in Helsinki 2022, by country of origin
    • Premium Statistic Number of airport passengers in Finland from 2016-2022, by airport
    • Premium Statistic Passenger traffic in ports of Helsinki, Finland 2017-2022, by route

    Domestic tourism

    • Basic Statistic Number of domestic arrivals in tourist accommodation in Finland 2012-2022
    • Premium Statistic Number of domestic leisure trips in paid accommodations in Finland 2012-2022
    • Premium Statistic Number of outbound trips from Finland 2013-2023
    • Premium Statistic Number of outbound trips from Finland 2013-2023, by type
    • Premium Statistic Number of outbound trips from Finland 2022, by country of destination
    • Premium Statistic Number of outbound leisure trips from Finland 2022, by destination
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    • Premium Statistic Number of accommodation establishments in Finland 2022, by type
    • Premium Statistic Number of hotels and similar accommodation in Finland 2012-2022
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    Further related statistics

    • Basic Statistic Revenue share from tourism in India 2013-2022, by segment
    • Basic Statistic Travel & tourism direct economic impact in South Korea 2012-2028
    • Basic Statistic Contribution of travel and tourism to employment in the Canary Islands 2010-2018
    • Premium Statistic Tourism GDP in the Balearics 2016-2021
    • Basic Statistic Contribution of travel and tourism to GDP in the U.S. 2013-2017, by type
    • Basic Statistic Travel & tourism to GDP impact in South Korea 2017, by type
    • Basic Statistic Contribution of travel and tourism to GDP in Canada 2019-2022
    • Basic Statistic Travel & tourism economic impact in South Korea 2011-2028
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    • Basic Statistic Travel & tourism GDP direct contribution share in South Korea 2017, by travel type
    • Basic Statistic Travel and tourism's direct contribution to GDP in Europe 2012-2028
    • Premium Statistic COVID-19 impact on tourism GDP and national GDP in Spain 2020-2022
    • Basic Statistic Travel and tourism's direct contribution to GDP in Germany 2012-2028
    • Basic Statistic Travel and tourism's direct contribution to GDP in Turkey 2012-2028
    • Basic Statistic Monthly number of foreign traveler arrivals in South Africa 2020-2023
    • Premium Statistic Latin America: airlines' revenues growth rate Q2 2020, by type
    • Basic Statistic Monthly number of resident departures from South Africa 2019-2022, by airport

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    • Revenue share from tourism in India 2013-2022, by segment
    • Travel & tourism direct economic impact in South Korea 2012-2028
    • Contribution of travel and tourism to employment in the Canary Islands 2010-2018
    • Tourism GDP in the Balearics 2016-2021
    • Contribution of travel and tourism to GDP in the U.S. 2013-2017, by type
    • Travel & tourism to GDP impact in South Korea 2017, by type
    • Contribution of travel and tourism to GDP in Canada 2019-2022
    • Travel & tourism economic impact in South Korea 2011-2028
    • Tourism GDP in the Canary Islands 2015-2021
    • Travel & tourism GDP direct contribution share in South Korea 2017, by travel type
    • Travel and tourism's direct contribution to GDP in Europe 2012-2028
    • COVID-19 impact on tourism GDP and national GDP in Spain 2020-2022
    • Travel and tourism's direct contribution to GDP in Germany 2012-2028
    • Travel and tourism's direct contribution to GDP in Turkey 2012-2028
    • Monthly number of foreign traveler arrivals in South Africa 2020-2023
    • Latin America: airlines' revenues growth rate Q2 2020, by type
    • Monthly number of resident departures from South Africa 2019-2022, by airport

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    • Explore Maldives roadshow set to reignite Indian travel market in Bengaluru

    indian travel and tourism industry

    • Online Bureau ,
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    • Updated On Jun 22, 2024 at 01:59 AM IST

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    Maldives Tourism to organise three city India roadshow in July

    This roadshow will be held in three major cities: Bengaluru on July 22, Mumbai on July 24, and New Delhi on July 26. This strategic initiative aims to bolster the Maldives' presence in the Indian market, one of the fastest-growing outbound tourism markets globally. The roadshow will emphasise the Maldives' unique attractions, such as its pristine beaches, luxurious resorts and guesthouses, vibrant marine life, and rich cultural heritage.

    • By Online Bureau ,
    • Published On Jun 21, 2024 at 02:59 PM IST

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COMMENTS

  1. Travel and tourism industry in India

    While rail and road were economic means of travel, airlines made up nearly 20 percent of the tourism market in India. Domestic travel accounted for more than 60 percent of the sector. Home-grown ...

  2. Indian Tourism and Hospitality Industry Analysis

    The Indian travel and tourism industry is expected to record an annual growth at 7.1% per annum. In WTTC's Economic Impact 2023 report, India's Travel and Tourism GDP contribution grew by 5.9%. In 2021, the travel & tourism industry's contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028.

  3. Hospitality Sector, Tourism In India

    The Indian travel and tourism industry is expected to record an annual growth at 7.1% per annum. In WTTC's Economic Impact 2023 report, India's Travel and Tourism GDP contribution grew by 5.9%. In 2021, the travel & tourism industry's contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028.

  4. Indian Tourism Industry to Generate $24 Billion in 2024

    Learn More. The travel and tourism industry in India is projected to generate revenue of nearly $24 billion in 2024, according to industry promotions body India Brand Equity Foundation. At an ...

  5. Tourism Industry in India

    Revenue is projected at $7.66 Bn in 2023. CAGR of 8.29% between 2023-27. 61.3 Mn potential customers by 2027. Adventure Tourism. India has 70% of the Himalayas, a 7,000+ Km of coastline, ranks 10th in total area under forest cover, and is one of the three countries in the world with both hot and cold deserts.

  6. The growing potential of Indian tourists

    Indian travelers are not a homogenous group; destination preferences vary across regions. For example, travelers from North India constitute a large share of travel to the United States and Canada, while two-thirds of travelers from Kerala prefer destinations in the Middle East. 1 India tourism statistics 2020, Ministry of Tourism, Government of India, January 2021; MarketIS.

  7. Travel & Tourism

    The Travel & Tourism market in in India is projected to grow by 9.62% (2024-2028) resulting in a market volume of US$34.25bn in 2028. ... India's tourism industry is currently focusing on ...

  8. International tourism in India

    Total contribution of travel and tourism to GDP in India from 2013 to 2023 (in billion U.S. dollars) Basic Statistic Direct contribution of tourism and hospitality to GDP in India 2012-2028

  9. India's travel and tourism sector: Steering towards a brighter future

    Rajesh Magow. Rajesh Magow is the Co-founder and Group CEO of MakeMyTrip. As we review 2023, the Indian travel and tourism industry's role in fueling the nation's economic resurgence stands ...

  10. India Travel and Tourism

    According to NTTO statistics, a total of 1,256,915 Indians traveled to the United States, making India the 6th largest market for arrivals. The total value of U.S. tourism exports to India stood at $13.3 billion in 2022. With the number of visitations to the United States increasing year-on-year, industry sources forecast that India will ...

  11. India Tourism: From hurdles to heights, how India's tourism sector is a

    In India as well, up until the onset of the Covid pandemic, the Indian tourism and travel industry had been one of the major drivers of generating 87.5 million jobs (directly and indirectly). Worldwide hotel networks were expanding their presence in the nation accounting for 47 per cent of the total travel and tourism business in 2020 which was ...

  12. India

    Meetings, Incentives, Conferences and Exhibitions (MICE): India is poised to become the world's fastest growing source of MICE tourism, exceeding $45 billion by 2025. It is already the largest source for Dubai and Singapore. MICE groups are considered high spenders as travel and on-ground arrangements are most often paid for by employers.

  13. Changing Trends for Indian Travel & Tourism Industry

    The travel & tourism sector in India accounts for more than 9% of the total employment opportunities resulting in direct employment to 43 million Indians. COVID 19 pandemic impact on the sector is quite harsh and recovery is looking 3 to 4 quarters away. ... The whole tourism industry needs to focus on domestic tourism and recovery will be ...

  14. India: travel and tourism total impact to GDP 2023

    Published by Statista Research Department , Mar 11, 2024. In 2022, the travel and tourism industry in India contributed around 190 billion U.S. dollars to the country's GDP. In 2022, the country ...

  15. Indian Travel & Tourism: Tourism's Contribution To India's GDP And

    On World Tourism Day, here's a look at the impact of Covid-19 on India's travel and tourism industry. By Samidha Jain, Forbes India Staff. Published: Sep 27, 2021 04:59:38 PM IST .

  16. India: Travel and Tourism

    India: Travel and Tourism. Indian visitation to the United States grew from 1.12 million in 2015 to 1.5 million in 2019, and in 2018 India broke into the top ten visitation nations list for the first time. Tourism receipts from Indian visitors to the United States reached $16.5 billion in 2019, making India the fifth largest spending market.

  17. Travel and Tourism Sector in India:

    As per IBEF's report on Growth of Tourism and Hospitality Industry, Travel and tourism are two of the largest industries in India, with a total contribution of about US$ 178 billion to the country's GDP. The country's big coastline is dotted with several attractive beaches. With this, the travel market in India is projected to reach US ...

  18. Ask Skift: How Is India Marketing Tourism?

    As India's role in the global travel industry continues to grow enormously, here's a look at how Indian authorities market tourism. India's clout in travel is booming, especially as the country ...

  19. Indian Travel and Tourism Industry: Sustained Supply and ...

    India's travel and tourism sector is a major contributor to the country's economy. According to the Ministry of Tourism, Foreign Exchange Earnings in December 2023 reached Rs. 24,707 crores ...

  20. Travelling through time

    Joining the travel & tourism industry for many of the Baby boomers, was not a real passion but it so happened, while they were searching for a future source of income. However, I was fortunate to have a vision of tourism and was blessed enough to get a job of my choice in the Gulf Tourism Industry.I add here my observations on the growth of this wonderful industry, to which I have been ...

  21. Tourism Industry In India

    Importance of Tourism Sector. Employment Generation: Travel, tourism, and hospitality can exponentially create jobs, which is important for India's demographic dividend, as 72% of India's population is below 32 years with the average age of 29. Travel and tourism account for approximately 8.1% of the total employment opportunities.

  22. Top 10 countries for travel and tourism in 2024: Where does India rank?

    The World's Top Travel Destinations for 2024: The travel and tourism industry has significantly contributed to the global economy, with millions of people travelling to various destinations worldwide each year. Despite the challenges posed by the pandemic, the industry is set for a significant rebound and is expected to drive global international tourist arrivals.

  23. Modi govt 3.0: Making Incredible India tourism a national priority

    Visitor experience. The 'visitor experience' in India must be taken to the next orbit. As per Indian travel industry estimates, approximately 200 tourism products provide 80 per cent of the business.

  24. A new itinerary for the tourism industry

    Margaux Constantin: Adding further to this notion of the travel safari company, and being a bit more focused on older generations, because they do spend more than younger generations. They spend three times more. But if you start thinking, "Maybe, there is a new market in the younger generations and Gen Z because they are willing to spend disproportionately on experiences."

  25. ITB India 2024 Conference to reveal key trends in the South Asia Travel

    ITB India 2024 Conference will gather travel industry professionals from 11 - 13 September 2024, at Jio World Convention Centre in Mumbai, India. Under this year's theme "Future-Ready Travel ...

  26. India: contribution of travel and tourism to GDP 2023

    Published by Statista Research Department , Mar 11, 2024. In 2022, the travel and tourism sector in India contributed around 5.9 percent to the total GDP of the country. This amounted to over ...

  27. Explore Maldives roadshow set to reignite Indian travel market in

    Explore Maldives Roadshow: The roadshow aims to underscore the Maldives as a premier travel destination by engaging key stakeholders in dynamic networking sessions and captivating presentations. The roadshow represents a significant effort to strengthen tourism ties between India and the Maldives. As the travel industry recovers and evolves, such initiatives are essential for driving sustained ...

  28. Travel to Elektrostal : Trips to Elektrostal

    Visit Elektrostal on minube: sights to see, what to do in Elektrostal, restaurants, hotels... Everything you need to travel to Elektrostal