Begin typing your search...

India emerging biz travel market

By 2030, India expected to be among top-5 business travel markets

India emerging biz travel market

Incredible India has been the buzz words for promoting The Tourism and Hospitality industry which is one of the largest service industries in India. Tourism industry in India plays a role of significant economic multiplier and becomes critical since India has to grow at rapid rates and create jobs.

India offers geographical diversity, world heritage sites and niche tourism products like cruises, adventure, medical, eco-tourism, etc. Incredible India has spurred growth in Tourists Arrivals and Employment.

Tourism tends to encourage the development of multiple-use infrastructure including hotels, resorts & restaurants, transport infrastructure (aviation, roads, shipping & railways) and healthcare facilities.

By 2030, India is expected to be among the top five business travel markets. Tourism offers a wide range of benefits, including economic benefits for countries attracting a large number of visitors, due to the money they spend not only on their actual stay, but also on local businesses. It also provides a large number of jobs for people working in the transport and hospitality industry, among others.

The airline industry plays a vital role in the modern travel industry, providing passengers with access to both domestic and overseas flights, allowing them to quickly reach their intended destinations via commercial aircraft. Airline services are generally divided into scheduled and chartered flights.

Coach and bus services assist airport passengers with travel to their accommodation, taking groups of tourists on day trips to local attractions or popular tourist destinations, and offering access to other nearby towns and cities.

Rail travel provides a means for travellers to get to their destinations not always accessible by air. It is also a cheaper and more convenient mode of transport The accommodation sector is central to the travel and hospitality industry, because people travelling to different areas require somewhere to stay, rest, sleep and unwind. In fact, by many definitions, a tourist is only classed as such if their stay exceeds 24 hours and they use some form of overnight accommodation.

Cruises also come under the accommodation sector, because cruise liners serve as a form of accommodation in their own right. Typically, on a cruise, travellers will be allocated their own cabin and the cruise itself will last a set length of time, with tourists staying on the cruise ship for the majority of the duration.

Catering is usually recognised as the provision of food services at more remote locations. Within this sub-section would be the various foods and drink offerings found at hotels and other accommodation types, as well as on planes, cruise ships or trains. It also includes offerings at many tourist attractions or entertainment sites.

Bars and cafés are an important part of the local economy in many travel destinations, offering tourists a more relaxed location to consume refreshments, drink alcohol and socialise with locals or other tourists.

Some tourists travel to new locations in the pursuit of entertainment. Such travellers may be drawn to entertainment options that are not available in their home location, or they may simply require more general entertainment, which would be accessible almost anywhere in the world, as part of their trip. Casinos are entertainment facilities centred around gambling activities especially at MICE destinations. The retail industry and the travel industry are closely connected and most major tourist destinations will also provide shopping facilities. Tourist guides provide tourists with access to organised tours of local attractions, landmarks, educational buildings and other places of interest.

In 2020, the travel & tourism industry's contribution to the GDP was $121.9 billion; this is expected to reach $512 billion by 2028. In India, the industry's direct contribution to the GDP is expected to record an annual growth rate of 10.35 per cent between 2019 and 2028.

By 2028, Indian tourism and hospitality is expected to earn $50.9 billion as visitor exports compared with $28.9 billion in 2018. International tourist arrivals are expected to reach 30.5 million by 2028.

The travel market in India is projected to reach $125 billion by FY27 from an estimated $75 billion in FY20. In FY20, tourism sector in India accounted for 39 million jobs, which was 8.0 per cent of the total employment in the country. By 2029, it is expected to account for about 53 million jobs.

The hotel & tourism sector received cumulative FDI inflow of $15.89 billion between April 2000 and June 2021. India's share in global tourist arrivals is 1.5 per cent. The share in International Tourism Receipts is 1.3 per cent and the Foreign Exchange Earnings (FEEs) is $30 Billion. At present, there are around sixteen major airports in the country, but by 2033, these are expected to increase to forty-five. These airports are likely to boost tourist arrivals and give a fillip to domestic tourism.

Vincent Fernandes
Next Story
Share it