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Reorienting Tourism in India

India’s tourism sector is at a pivotal moment, contributing 6.8% to the GDP and providing employment to 9.2% of the workforce, yet grappling with notable sustainability challenges. The way forward requires a transformative strategy centred on community participation, environmental protection, and the promotion of authentic travel experiences. As the global tourism industry evolves, India’s ability to harmonize economic growth with cultural preservation, environmental sustainability, and responsible tourism practices will determine its long-term success.

Current Status of the Tourism Sector in India

• Status: The tourism sector in India is experiencing a strong recovery and holds immense growth potential in the post-pandemic era, with domestic tourism driving the resurgence. India ranks 10th globally in travel and tourism GDP contribution, and international tourist arrivals are projected to reach 30.5 million by 2028, underscoring the sector’s promising future.
• Contribution: Tourism plays a significant role in India’s economy, with its total contribution to GDP recorded at USD 199.6 billion in 2022 and projected to rise to USD 512 billion by 2028. Growing at an annual rate of 7.1%, the sector is expected to create 53 million jobs by 2029, cementing its position as a key employment generator.
• Foreign Tourist Arrivals (FTAs): FTAs have shown remarkable growth, reaching 9.24 million in 2023, up from 6.43 million in 2022. The majority of FTAs were from Bangladesh (24.5%), the USA (20.4%), and the UK (6.9%).

Significance of the Tourism Sector for India

• Economic Catalyst and Employment Generator:
  Tourism serves as a key driver of economic growth by boosting income and creating employment opportunities across various sectors, including hospitality, transport, and retail.
  The sector is projected to generate approximately 39.5 million jobs by the end of 2024.
  Foreign Exchange Earnings (FEE) from tourism amounted to USD 28.1 billion in 2023, showcasing its critical role in bolstering foreign exchange reserves.
• Cultural Preservation and Global Soft Power:
  Tourism helps preserve India’s rich cultural heritage while strengthening its global soft power.
  Initiatives like Swadesh Darshan have rejuvenated heritage circuits, such as the Ramayana Circuit, attracting significant tourist interest.
  India’s 43 UNESCO World Heritage Sites, including the newly added Sacred Ensembles of the Hoysalas, draw millions of visitors annually, promoting cultural diplomacy and global recognition.
• Infrastructure and Regional Development:
  Tourism accelerates infrastructure growth, such as roads, airports, and regional connectivity, particularly in underdeveloped areas.
  Through the UDAN scheme, regional airports expanded to 148 by 2023, improving access to remote destinations.
  For example, Jammu & Kashmir welcomed over 2 crore tourists in 2023, boosting regional economies and addressing geographic inequalities.
• Environmental Sustainability through Ecotourism:
  Ecotourism promotes the protection of biodiversity while offering sustainable livelihood opportunities for local communities.
  Kaziranga National Park, for instance, generated ₹8.8 crore in revenue in 2024 due to heightened ecotourism activities.
  Programs like The Travel for Life initiative advocate low-impact tourism, fostering a balance between development and environmental conservation.
• Healthcare and Wellness Hub:
  India’s advanced yet affordable healthcare system has positioned the country as a leading global destination for medical and wellness tourism.
  The medical tourism sector reached USD 9 billion in 2022, with over 650,000 medical visas issued to international patients that year.
  Initiatives such as the E-Visa system, Ayush Visa, and Ayurveda-focused conferences further strengthen India’s standing as a hub for healthcare and wellness tourism.
• Strengthening Diplomacy and Multilateral Engagements:
  Tourism enhances India’s global reputation by showcasing its cultural diversity and infrastructure during international events.
  For example, the G20 Summit in 2023, hosted across more than 50 cities, spotlighted destinations such as Guwahati, Indore, Jodhpur, and Khajuraho, earning global recognition.
  Similarly, events like Pravasi Bharatiya Divas underline India’s commitment to using tourism as a tool for diplomacy and international engagement.
• Rural Development and Social Equity:
  Tourism plays a crucial role in bridging rural-urban disparities by creating income opportunities in remote regions and preserving local traditions.
  Kumbalangi near Kochi was recognized as India’s first model tourism village, while Ladpura Khas in Madhya Pradesh was named the Best Tourism Village by the United Nations World Tourism Organisation (UNWTO).
  Such initiatives empower rural communities while safeguarding their cultural heritage.
• Pandemic Recovery and Resilience:
  Tourism has been instrumental in India’s recovery from the pandemic, with domestic and international travel witnessing remarkable growth.
  Domestic tourist visits surged to 1,731 million in 2023, up from 677 million in 2021, showcasing the sector’s resilience.
  Foreign tourist arrivals also rose to 9.2 million in 2023, driven by campaigns like Dekho Apna Desh and initiatives linked to the G20 presidency.
• Promotion of Start ups and Entrepreneurship:
  Tourism fosters innovation and entrepreneurship, especially in sectors like adventure tourism and ecotourism.
  The National Tourism Policy 2022 supports rural entrepreneurs through funding and skill development programs, boosting micro-enterprises.
  India now hosts over 1,500 tourism-related startups offering solutions in travel planning, booking, and facility management, with cloud and SaaS technologies accelerating growth.

Key Issues Related to India’s Tourism Sector

1. Inconsistent Tourism Infrastructure Development:
   India’s tourism sector is hindered by inadequate and uneven infrastructure that falls short of global standards.
   Poor-quality roads, limited high-end accommodations, and a lack of amenities at heritage and ecotourism sites reduce its appeal.
   For example, states like Bihar and Jharkhand, rich in cultural and historical significance, attract significantly fewer tourists compared to Rajasthan.
   Additionally, rapid and poorly planned infrastructure development can lead to catastrophic outcomes, as witnessed in the Joshimath subsidence crisis.
   Transportation challenges and unresolved insurgency issues in the Northeast further limit the region’s tourism potential despite its natural and cultural wealth.
2. Environmental Challenges and Over-Tourism:
   Unregulated tourism and over-tourism have caused significant environmental degradation in many popular destinations.
   For instance, Shimla’s acute water crisis in 2018 was partly attributed to tourist numbers exceeding the city’s carrying capacity.
   Similarly, Goa produces approximately 2,700 tons of non-recyclable waste monthly, with plastic waste being a major contributor, despite ongoing cleanup campaigns.
   These examples highlight the urgent need for sustainable tourism practices to balance growth with environmental conservation.
3. High Dependence on Domestic Tourism:
   India’s tourism sector relies heavily on domestic tourism, limiting its potential for foreign exchange earnings and global competitiveness.
   While domestic visitor spending grew by 15% in 2023, reaching ₹14.64 trillion, international visitor spending fell short of 2019 levels by over 14%, with a ₹0.4 trillion deficit.
   This heavy dependence on domestic tourism constrains India’s ability to tap into the lucrative international tourism market.
4. Safety and Security Concerns:
   Safety issues, particularly for women and solo travelers, negatively impact India’s reputation as a tourist-friendly destination.
   According to NCRB data, 192 offenses were reported against foreigners (tourists and residents) in 2022, with incidents in Rajasthan and Goa drawing global attention.
   Natural disasters, like the flash floods in Himachal Pradesh in 2023, also exposed weaknesses in emergency response systems for tourists.
5. Lack of Skilled Workforce in the Tourism Sector:
   India’s tourism and hospitality industry faces a severe shortage of skilled professionals, impacting service quality and competitiveness.
   The sector is projected to face a shortfall of over 3.5 million skilled workers in areas such as hotel management, culinary arts, and travel operations.
   This workforce gap limits India’s ability to meet growing tourism demands effectively.
6. Insufficient Funding and Policy Fragmentation:
   Tourism in India suffers from inadequate funding and inconsistent policy implementation.
   Although the government increased the tourism budget, it reduced global promotion funding by 97%.
   Additionally, delays in finalizing the National Tourism Policy have resulted in fragmented and uncoordinated efforts at both state and national levels.
7. Cultural Erosion and Loss of Authenticity:
   Unregulated tourism often leads to the commercialization of cultural experiences, diluting their authenticity.
   For example, Jaipur’s traditional arts and crafts are overshadowed by mass-produced souvenirs, leaving artisans with only a small share of tourism revenue.
   UNESCO has warned about the “over-commercialization” of India’s heritage cities, emphasizing the need for cultural preservation strategies.
8. Lack of Focus on Digital and Smart Tourism:
   India lags in adopting digital tools and smart technologies for tourism management and promotion.
   While initiatives like Incredible India have integrated digital marketing, states such as Nagaland and Manipur lack robust digital ecosystems to attract and manage tourists effectively.
   Globally, countries like Singapore leverage AI and big data for personalized tourist engagement, giving them a competitive edge over India.

Measures to Promote Sustainable Tourism in India

1. Develop Sustainable Tourism Infrastructure:
   India needs to prioritize eco-friendly and sustainable infrastructure development, especially in ecologically sensitive regions.
   Green building practices, solar-powered accommodations, and efficient waste management systems can help minimize the environmental impact of tourism.
   The Swadesh Darshan 2.0 scheme, which emphasizes sustainability in destination development, is a significant step forward.
   Expanding green certifications for tourism establishments will further encourage environmentally responsible practices.
2. Promote Community-Based and Rural Tourism:
   Involving local communities in tourism activities ensures sustainability while safeguarding cultural heritage.
   Programs like the Rajasthan Rural Tourism Scheme can be scaled up nationwide to encourage village-based tourism that supports artisans and local entrepreneurs.
   For example, Gujarat’s Hodka village, a model for community-managed tourism, attracts thousands of tourists annually.
   Linking traditional crafts and local products to tourism circuits can create additional income streams and curb rural-to-urban migration.
3. Encourage Public-Private Partnerships (PPPs):
   Collaborations between the government and private sector can attract investments for sustainable tourism initiatives.
   PPPs can facilitate the development of eco-parks, heritage site restoration projects, and modernized infrastructure.
   For instance, the Statue of Unity project in Gujarat, developed through such partnerships, created employment while ensuring environmental preservation.
   Expanding similar models to lesser-known destinations can promote balanced tourism growth across regions.
4. Strengthen Waste Management and Pollution Control:
   Tourism destinations must adopt robust waste management systems and pollution control measures.
   Plastic-free zones should be implemented at all major tourist hubs.
   Beach destinations like Goa and Kerala can adopt marine pollution control strategies inspired by Japan’s successful beach cleanup initiatives.
   Government campaigns under Mission LiFE (Lifestyle for Environment) can educate tourists on responsible travel practices.
5. Leverage Technology for Smart Tourism:
   India can utilize technology to enhance sustainable tourism through smart ticketing systems, AI-driven crowd management, and virtual tourism experiences.
   For example, QR code-based ticketing at heritage sites like the Taj Mahal reduces paper waste while improving visitor experiences.
   Integrating AR/VR technologies on platforms like Incredible India can promote virtual tourism and attract tech-savvy tourists.
6. Integrate Renewable Energy Solutions:
   Tourism establishments, especially in remote or ecologically sensitive areas, should adopt renewable energy solutions to lower their carbon footprint.
   Solar-powered lodges in Ladakh are a successful example of sustainable tourism practices.
   Expanding subsidies under the Solar Charkha Mission to tourism-related businesses can support the transition to renewable energy.
   Providing tax incentives for carbon-neutral operations will further promote sustainability.
7. Implement Capacity Management at Popular Destinations:
   Carrying capacity studies should inform policies to regulate tourist numbers in fragile ecosystems and overcrowded destinations.
   For instance, destinations like Shimla and Manali, which face over-tourism, can adopt daily tourist caps through online permit systems, similar to Bhutan’s sustainable tourism model.
   Such measures ensure the preservation of natural resources and infrastructure for future generations.
8. Develop Low-Impact Transport Networks:
   Promoting sustainable transportation options like electric buses and bicycles can significantly reduce the carbon footprint of tourism.
   Kerala’s e-Mobility program, which introduced electric boats in its backwaters, can be replicated in other tourist regions.
   The Regional Connectivity Scheme (UDAN) can expand eco-friendly aviation practices, aligning with low-impact tourism goals.
   These measures align with India’s 2070 net-zero carbon target.
9. Establish Green Tourism Zones:
   Designating specific regions as Green Tourism Zones can promote sustainable practices and resource conservation.
   States like Uttarakhand have pioneered eco-tourism initiatives to protect fragile ecosystems while encouraging responsible tourism.
   Linking such zones to schemes like Swadesh Darshan and PRASAD (Pilgrimage Rejuvenation and Spiritual Augmentation Drive) can attract environmentally conscious travellers.
10. Preserve Cultural Heritage and Traditional Practices:
    Sustainable tourism must prioritize preserving India’s cultural and historical heritage.
    Integrating local cultural festivals into tourism circuits can highlight authenticity while supporting local traditions.
    Developing additional cultural tourism circuits, such as the Ramayana Circuit, can further promote India’s rich heritage and attract cultural tourist.

By promoting inclusive and responsible tourism, India can create meaningful jobs, protect its natural resources, and preserve its rich cultural heritage. This holistic approach positions India as a global leader in sustainable tourism, showcasing its commitment to environmental and social sustainability.

The End of the Blog: Reorienting Tourism in India