India Must Diversify Tourism Services To Tap New Markets: FHRAI Chief Pradeep Shetty

In an exclusive interview with Bizz Buzz, Pradeep Shetty, President of the Federation of Hotel & Restaurant Associations of India (FHRAI), emphasised the need for India to adapt to emerging tourism trends by diversifying its services and tapping into new market segments. “Eco-friendly accommodations and sustainable practices are crucial for balancing economic growth with environmental and cultural preservation,” Shetty said, advocating for a holistic approach to tourism development.

He also discussed the importance of government support in incentivizing private investments and simplifying legal procedures to boost the industry. Addressing the $3 trillion economy target by 2047, Shetty highlighted the sector’s potential to significantly contribute through targeted marketing and infrastructure development. “Expanding niche markets like wellness tourism and adventure travel can attract diverse traveler segments and drive economic growth,” he added

With a focus on sustainable growth, what are the key responsible tourism practices that should be implemented to balance economic benefits with environmental and cultural preservation?

Key responsible tourism practices include several crucial actions. Firstly, minimising environmental impacts through waste reduction, conserving water and energy, and utilising sustainable resources is vital. Secondly, preserving cultural heritage by respecting local traditions and supporting community-based projects helps maintain cultural integrity.

Eco-friendly accommodations and wildlife tours play a significant role in protecting natural habitats while providing economic benefits. Sustainable lodging options, such as green-certified hotels, reduce environmental footprints, while responsible wildlife tours ensure that animal welfare and habitat conservation are prioritised.

For example, eco-friendly accommodations and wildlife tours protect natural habitats and also provide economic benefits to local communities. Implementing these ensures that tourism contributes positively to both the environment and cultural preservation while also boosting local economies. We can achieve a balance between economic benefits and the protection of natural and cultural resources by integrating tourism operations with sustainability principles.

What specific steps can the Government take to support and incentivize private stakeholders in the tourism industry?

The government can play a significant role by putting in place a number of policies. Encouraging private stakeholders to invest in environmentally friendly initiatives can be done by providing tax incentives for businesses that use sustainable practices. The expansion of the business can be supported by grants and subsidies for infrastructure improvements, such as the construction of new tourist attractions or the renovation of old ones. Funding training programs for tourism professionals can improve service quality and industry skills. Public-private partnerships have the potential to promote creative and collaborations in the tourist industry. Simplifying legal procedures and improving marketing efforts to promote India as a travel destination will attract more international travellers, hence supporting total sector growth.

To further support infrastructure development, specific rewards or financial incentives could be introduced for projects that meet high standards of innovation, sustainability, and community impact. For example, rewards might include performance-based bonuses, expedited permits, or recognition awards for projects that demonstrate exceptional benefits to the tourism sector.

How can India’s tourism sector contribute to achieving the $3 trillion economy target by 2047?

India’s tourism sector can contribute significantly to reaching the $3 trillion economy target by expanding its market share and enhancing its global presence. This includes increasing the number of international and domestic tourists through targeted marketing and improving infrastructure.

Firstly, increasing the influx of international and domestic tourists is essential. This can be achieved through targeted marketing campaigns that highlight India’s diverse attractions, cultural heritage, and unique experiences. Improving infrastructure, such as upgrading airports, expanding transportation networks, and enhancing public amenities, will make travel within India more accessible and enjoyable. By investing in these areas, India can attract a larger number of tourists and improve their overall experience.

Developing niche markets such as wellness tourism, adventure travel, and cultural experiences can also boost the sector. These areas cater to specific interests and can draw diverse traveller segments, contributing significantly to economic growth. For instance, wellness tourism offers opportunities for luxury and holistic experiences, while adventure travel attracts thrill-seekers from around the globe.

In 2022, the tourism sector contributed around $250 billion to India’s GDP, demonstrating its substantial economic impact. The industry has the potential to boost economic growth and be important in achieving the $3 trillion target by 2047 if it keeps developing and enhancing its solutions.

What investment priorities should be established to enhance India's tourism offerings and infrastructure to meet future demands?

Investment priorities for improving India's tourism services should focus on a few important areas. Modernising infrastructure, including building new airports, upgrading roads, and improving public transportation, is essential for better connectivity.

Enhancing digital infrastructure to support tourism services and developing smart tourist hubs can significantly improve the visitor experience. Developing smart tourist hubs and incorporating advanced technologies can improve the visitor experience by providing seamless services and information. This includes implementing high-speed internet access and digital payment systems to cater to the needs of modern travellers.

Sustainable technologies and eco-friendly accommodations should be prioritised to attract environmentally-conscious tourists. Investments in green building practices and renewable energy sources align with global trends toward sustainability and can differentiate India’s tourism offerings. Additionally, investing in sustainable technologies and eco-friendly accommodations will appeal to environmentally-conscious travellers.

Further, creating high-speed train networks and improving local transport options will further boost accessibility and attractiveness. India can meet future demand and establish itself as a top global travel destination by prioritising investment in these areas.

How can India adapt to emerging trends in tourism, such as the rise of solo travel, digital nomadism, or sustainable travel preferences?

India can adapt to emerging tourism trends by diversifying its services and focusing on new market segments. For solo travellers, creating customised packages and providing safe, convenient accommodations can enhance their experience. To cater to digital influencers, investing in strong digital infrastructure and establishing co-working spaces in popular tourist destinations will support remote work.

For digital nomads, investing in robust digital infrastructure is key. Establishing co-working spaces in popular tourist destinations can support remote work while travellers are exploring India. These spaces should offer reliable internet access, comfortable working environments, and networking opportunities.

Sustainable travel preferences are increasingly important. Promoting eco-friendly destinations and ensuring that accommodations adhere to high environmental standards will attract eco-conscious travellers. Highlighting India’s efforts in sustainability and showcasing green initiatives will appeal to this growing market segment.

Emphasising sustainable travel by promoting eco-friendly destinations and ensuring that accommodations adhere to high environmental standards will attract eco-conscious travellers. India can better meet the evolving preferences of global tourists and stay competitive in the international market by following these trends.

What are the implications of changing global travel patterns and preferences for India’s tourism strategy, and how can the industry stay agile in response?

India's tourism sector must be flexible and responsive to shifts in international travel trends, such as the growing need for sustainable and personalised travel experiences. Investing in technology, such as AI-driven travel apps and virtual reality experiences, can enhance tourist engagement and personalization. The growing interest in meaningful and authentic encounters calls for a focus on unique local experiences and cultural authenticity. Tourism strategies should emphasise showcasing local traditions, cuisine, and heritage to attract visitors seeking immersive experiences.

Additionally, addressing safety and health concerns is crucial. Improving safety measures and health protocols will build trust among travellers and ensure their well-being during their stay. India can maintain its competitiveness and attractiveness in the changing global tourist scene by remaining flexible and adjusting to these trends. Adapting to emerging trends and evolving traveller preferences will help the industry continue to grow and thrive in a changing landscape.