hospitality and tourism industry

The Indian hospitality and tourism business has emerged as one of the critical drivers of growth of the professional services industry in India. Tourism in India has considerable potential thinking about the rich cultural and historic tradition, variety in ecology, terrains, and areas of natural beauty disperse throughout the nation. Tourism can be a possibly large job generator apart from being a substantial source of foreign exchange for the nation. In FY20, 39 million jobs have been created in the tourism industry in India; that accounted for 8.0percent of the entire employment in the nation. The amount is predicted to grow by just two% annum to 52.3 million projects by 2028.

Based on WTTC, India ranked 10th among 185 nations concerning travel & tourism’s total contribution to GDP in 2019. Throughout 2019, the participation of tourism & travel to GDP has been 6.8percent of the entire market, ‘’ Rs. 13,68,100 crore (US$ 194.30 billion).

Economy Size

India is the most digitally advanced traveller state concerning electronic tools used for planning, booking, and undergoing travel. India’s rising middle class and rising disposable income has supported the increase of domestic and outbound tourism.

Throughout 2019, overseas tourist arrivals (FTAs) in India stood at 10.89 million, reaching a growth rate of 3.20percent y-o-y.

Global hotel chains are increasing their presence in the nation, and it’ll account for approximately 47 percent share in the hospitality and tourism industry of India by 2020 and 50 percent by 2022.


India was internationally the third biggest concerning investment in tourism and travel with an inflow of US$ 45.7 billion in 2018, accounting for 5.9percent of the entire investment in the nation.

The Indian Government has realized that the nation’s capacity in the tourism business and has taken a few actions to make India an international tourism hub.

A number of the major initiatives planned by the Government of India to improve the hospitality and tourism industry of India are as follows:

The initiative is part of 17 new jobs which are planned. Also, the government may even establish seaplane service from Ahmedabad to the Statue of Unity at a significant drive to India’s tourism.
The Ministry of Tourism created an initiative Named SAATHI (System for Assessment, Awareness & Training for Hospitality Industry) by Dealing with the Quality Council of India (QCI) at October 2020. The initiative will efficiently ■■■■■■■ guidelines/SOPs issued with regard to COVID-19 for secure operations of resorts, restaurants, B&Bs along with other components.

Ministry of Tourism established the Dekho Apna Desh webinar series to give information on several destinations and absolute depth and expanse on the tradition and culture of India.
Ministry of Tourism established Audio Guide facility Program named Audio Odigos to get 12 sites in India (such as iconic websites ).
Prime Minister, Shri Narendra Modi encouraged individuals to see 15 national tourist destinations in
India by 2022. It’s the maximum standing statue on earth at a height of 182 metres. It’s expected to increase the tourism industry in the nation and place it around the world tourism map.
The government of India is currently working to reach a 1 per cent share in the world’s global tourist arrivals by 2020 and 2 per cent share by 2025.
Underneath Budget 2020-21, the Government of India has allotted Rs. 1,200 crore (US$ 171.70 million) for growth of tourist circuits beneath Swadesh Darshan for 2 Northeast states.
In 2019, the Government decreased GST on hotel rooms using tariffs of Rs. 1,001 (US$ 14.32) into Rs. 7,500 (US$ 107.31) per evening to 12 percent and people preceding Rs. 7,501 (US$ 107.32) to 18 percent to raise India’s competitiveness as a tourism destination.

Following are the accomplishments of this Government through 2019-20:

Throughout 2019-20, extra finance of Rs. 1,854.67 crores (US$ 269.22 million) was sanctioned for new jobs under the Swadesh Darshan scheme.
Ministry of Tourism sanctioned 18 jobs covering most of the North-Eastern States to get Rs. 1,456 crore (US$ 211.35 million) to build and market tourism in the area beneath Swadesh Darshan and PRASHAD schemes.
Statue of Sardar Vallabhbhai Patel, also called a condition of Unity’, has been inaugurated in October 2018 and the entire revenue generated until November 2019 stood at Rs. 82.51 crore (US$ 11.81 million).