India has always been a popular choice for tourists worldwide, showcasing rich heritage, diverse cultures, and breathtaking landscapes. According to the World Travel and Tourism Council, India ranks 6th in terms of Travel & Tourism’s total contribution to GDP in 2021. However, the tourism sector is not free from challenges.
Government Policies & Interventions in Indian Tourism
Recently, parliamentary committees have indicated that formulating a National Tourism Policy alone will not spur the growth of the tourism industry. They proposed expediting the establishment of a National Tourism Council similar to the GST council. This body would provide direct recommendations to both Central and State governments on various tourism-related issues.
Concerns Highlighted by the Committee
A dominant concern put forth by the committee is the inclusion of tourism in the concurrent list. The committee believes that such an inclusion will ameliorate problems plaguing the pandemic-hit Indian tourism sector since tourism involves multiple sectors.
Further, the committee seeks clarification from the Tourism Ministry about why many States have been reluctant to grant industry status to hospitality projects. Presently, only eight States — Maharashtra, Gujarat, Madhya Pradesh, Kerala, Karnataka, Punjab, Rajasthan, and Uttarakhand — have given industry status to such projects.
Discontentment was expressed over the slow progress rate of projects sanctioned five years ago or before 2017-18. The committee fears that projects extending beyond five years may result in cost and schedule overruns, leading to further financial stress and resource crunch for the ministry and concerned agencies.
Draft National Tourism Policy Highlights
The draft policy outlines the granting of industry status to the tourism sector and infrastructure status to hotels to draw investments. The next ten years will see significant focus on five areas — green tourism, digital tourism, destination management, skilling the hospitality sector, and supporting tourism-related MSMEs.
The policy will advocate appropriate tax and subsidy policies to encourage sustainable tourism activities and discourage unsustainable ones. While the draft policy doesn’t tackle specific operational issues, it offers a framework to augment the sector, particularly in light of the pandemic.
Present Status of Indian Tourism
India ranks 54th on the 2021 World Economic Forum’s Travel & Tourism Development Index. With 40 sites, India features on the UNESCO World Heritage List as of 2021, including Dholavira and Ramappa Temple, the latest additions. In FY20, tourism contributed to creating 39 million jobs, accounting for 8% of the nation’s total employment, expected to rise to 53 million jobs by 2029.
Government initiatives like the Swadesh Darshan Scheme, Dekho Apna Desh Initiative, National Green Tourism Mission, PRASAD scheme, and Buddhist Conclave were put into action recently.
Challenges in the Tourism Sector
Despite its potential, Indian tourism still grapples with infrastructure-related problems like inadequate roads, poor water supply, subpar sewer systems, shortage of hotels, and limited telecommunications. The safety and security of tourists, particularly foreign nationals, pose a significant challenge, with incidents involving these tourists raising questions about India’s capacity to host foreign visitors.
Further issues include the lack of skilled manpower, lack of basic amenities like drinking water, clean toilets and cafeterias at tourist spots. Seasonality is another concern, with peak season confined to six months from October to March, causing heavy rush in November and December.
A Look Ahead: Ensuring Inclusive Growth in Tourism
Given India’s rich cultural and heritage offering, tourism can be a fantastic vehicle to elevate India’s soft power and attract foreign revenue. The Indian philosophy of ‘Vasudhaiva Kutumbakam,’ which sees the world as one family, strengthens India’s belief in multilateralism.
A focus on inclusive tourism growth can create opportunities for marginalized sectors of society, including those in remote areas. Extensive market research can help identify desired tourist destinations across the country and major markets.
Several questions remain about how to restore the mountain ecosystem from the negative impact of developmental initiatives and tourism. There’s also a critical evaluation of the ecological capacity of several states due to tourism. Through concerted effort and strategic planning, a flourishing and sustainable tourism sector is achievable.
