Tourism sector has recovered impressively in recent years following the immensely challenging times in pandemic periods in India as well as around the world. Following the Union Budget 2023, Prime Minister Narendra Modi said that tourism has always been a part of our social and cultural civilization. India`s tourism comprises of multiple aspects and can be promoted as coastal tourism, wildlife tourism, adventure tourism, cultural tourism, beach, mangrove, Himalayan, spiritual tourism and others. Last year`s Budget prioritizes the development of tourist destination in a holistic manner and it aimed to develop at least 50 tourism destinations which can then be promoted globally. PM stated that with the development of tourist amenities at destinations, the tourism sector will definitely flourish. With the reconstruction of the Kashi Vishwanath Temple corrido, 7 crore tourists have visited the city. Kashi Vishwanath Dham and Kedarnath Dham are live models highlighting the fact that ease of travelling encourages increased tourist footfall. There has been an increase in the number of foreign tourists visiting India. With a proper strategy to promote India globally, the footfall is also bound to increase substantially. The Union Budget 2023-24 allocated an amount of Rs 2400 crores to the Ministry of Tourism.
Meanwhiel, PM GatiShakti National Master Plan is transforming the logistics ecosystem in the country and is supportive for hotels and tourism industry. India’s Growth Story is backed with solid structural reforms, robust macroeconomic management, and investment in physical, digital and social sector infrastructure. This investment in social infrastructure will lead to multiplier effect in the country and contribute to economic growth. PM GatiShakti, currently being rolled out at district-level, will soon be promoted as global public good. Infrastructure and logistics are key drivers of the economic growth. Through launch of PM GatiShakti National Master Plan and National Logistics Policy, government has prioritized large-scale infrastructure projects and improved logistics service efficiency respectively.
The President of India, Droupadi Murmu has also stated in her 2024 Budget session address that Tourism is a big sector providing employment to the youth. In the last 10 years, the government has done unprecedented work in the field of tourism. Along with the number of domestic tourists in India, the number of foreign tourists coming to India has also increased. President noted that the reason for the growth in the tourism sector is owed to India’s growing stature. Today the world wants to explore and know India. Apart from this, the scope of tourism has also increased due to excellent connectivity. Building of airports at various places is also advantageous. Now, North East is witnessing record tourist arrivals. Now there is heightened excitement about Andaman-Nicobar and Lakshadweep islands”.
Government has laid emphasis on the development of pilgrimage destinations and historical sites across the country. This has now made pilgrimage in India easier. At the same time, there is a growing interest in the world towards heritage tourism in India. In the last one year 8.5 crores of people have visited Kashi. More than 5 crores of people have visited Mahakaal. More than 19 lakh people have visited Kedar Dham. In the 5 days of “Pran Pratishtha” 13 lakh devotees have visited Ayodhya Dham itself. There is unprecedented expansion of facilities at pilgrimage sites in every part of India, East-West-North-South, stated the President.
Budget Expectations:
Prime Minister Narendra Modi has described Destination Weddings as an upcoming niche and emerging sector which had the potential for increasing tourism. The exchange of intercultural wedding rituals amongst the States can boost the sector further. Further events like global Conferences and sporting events has the potential to create stupendous level of infrastructure. He cited the example of the FIFA World Cup 2022, which benefitted Qatar`s economy massively. It is expected that the Union Budget 2024 will offer some incentives for facilitating such events in India.
Religious tourism will gain fervor following the opening of the Ram Mandir in Ayodhya which is expected to transform the city into a sought-after destination for pilgrims and tourists alike. The Centre's Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme, coupled with various state government initiatives is set to play a role in developing the spiritual travel industry in India over coming years.
Technological advances and digitalization with better infrastructure and cleanliness will help to boost tourism. Apps for tourists and digital connectivity can be modernized to make it accessible to all tourists. The government’s unwavering focus on Digital India and technological up gradation will likely be a beneficial factor for the tourism sector.
Outlook:
According to World Travel And Tourim Council or WTTC, in 2022, the Travel & Tourism sector contributed 7.6% to global GDP; an increase of 22% from 2021 and only 23% below 2019 levels. In 2022, there were 22 million new jobs, representing a 7.9% increase on 2021, and only 11.4% below 2019. Domestic visitor spending increased by 20.4% in 2022, only 14.1% below 2019. International visitor spending rose by 81.9% in 2022, but still 40.4% behind 2019 numbers. Prior to the pandemic, Travel & Tourism (including its direct, indirect, and induced impacts) accounted for 1 in 5 new jobs created across the world during 2014-2019, and 10.3% of all jobs (334 million) and 10.4% of global GDP (US$ 10 trillion) in 2019. Meanwhile, international visitor spending amounted to US$ 1.9 trillion in 2019. Tourism has been thriving in India too and with around two third of the total population or more than 80 crores being below the age of 35, rampant potential is likely to emerge in this sector.