The future of travel after Covid looks bright
By 2028, Indian tourism & hospitality is expected to earn $50.9 bn as visitor exports compared with $28.9 bn in 2018. The travel market in India is projected to reach $125 bn by FY27 from an estimated $75 bn in FY20
image for illustrative purpose
Before the onset of the pandemic, the Indian travel and tourism industry was expected to witness an annual growth rate of 6.9 per cent during 2019-2028 to reach $460 billion, approximately 9.9 per cent of India's GDP in 2028.
With a 10 per cent contribution to the GDP, over 15 per cent towards employment and foreign exchange earnings of Rs 211,661 crore in 2019, the case is ripe to seek the way forward for inbound, a segment that lies devastated by the pandemic.
Before the outbreak of the Covid-19 pandemic, tourism was one of the most important sectors in the world economy contributing to nearly 10 per cent of global GDP and providing employment to over 320 million people worldwide.
Further, the global tourism body highlighted that the sector could create 58 million jobs in 2022, to reach more than 330 million, just 1 per cent below pre-pandemic levels and up by 21.5 per cent of 2020 levels if — the vaccine and booster rollout continue at pace this year, and international travel restrictions are eased around the world throughout the year.
Further, the United Nations Conference on Trade and Development (UNCTAD) estimated a loss of $4 trillion to global GDP because of the losses incurred in the tourism sector. The travel and tourism sector's contribution to the global economy could reach $8.6 trillion this year, just 6.4 per cent behind pre-pandemic levels, new research from the World Travel & Tourism Council (WTTC) stated.
By 2028, Indian tourism and hospitality is expected to earn $50.9 billion as visitor exports compared with $28.9 billion in 2018. The travel market in India is projected to reach $125 billion by FY27 from an estimated $75 billion in FY20. The Indian airline travel market was estimated at $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 $32 billion in FY20 and is expected to reach $52 billion by FY27, driven by the surging demand from travellers and sustained efforts of travel agents to boost the market.
India showcased its different tourism products and potential at the Arabian Travel Market, Dubai -2022 as Middle-East has always been one of the major target markets for Indian Tourism. Tourism ministry also undertook 'NamasteIndia' campaign for encouraging international visitors to travel to India during this mega event. Several state governments from India did participate in the event, showcasing their major tourist destinations. India displayed itself as a holistic destination, revolving around major experiences, such as spirituality, heritage, adventure, culture, yoga, wellness and many more things.
The tourism ministry has been aggressively promoting different tourism products and destinations. The major focus has been given to the potential of MICE, Film Tourism, Wellness Tourism, Medical Tourism, Luxury Tourism, Wildlife Tourism and Adventure Tourism. By 2028, Indian tourism and hospitality is expected to earn 50.9 billion dollar and the travel market in India is projected to reach 125 billion dollar by FY27 from an estimated 75 billion dollar in FY20.
The importance of film tourism and the potential of India as an-important destination for film-making, having all physical geographical features and landscape were also discussed at length. The role of north-eastern states as a potential film shooting destination was also showcased. The role of Indian diaspora for publicity and promotion of India in the overseas market was also discussed and sought for.
India's rising middle class and increasing disposable income has supported the growth of domestic and outbound tourism. By 2028, Indian tourism and hospitality industry is expected to earn 50.9 billion dollar as compared with 28.9 billion dollar in 2018. The travel market in India is projected to reach 125 billion dollar by FY27 from an estimated 75 billion in FY20. The Indian airline travel market was estimated at 20 billion dollar 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 32 billion dollar in FY20 and is expected to reach 52 billion dollar by FY27, driven by the surging demand from travellers and sustained efforts of travel agents to boost the market.
Anita Mendiratta, Special Advisor to the Secretary General, UNWTO, said, "Sustainability has been redefined through Covid. We've recognised that sustainability is environmental, but it's also economic sustainability, cultural sustainability, social sustainability, and spiritual sustainability. The future is to make sure that all these are in balance," she added.
