India Tourism Sector Contributes 5 Per Cent to GDP in 2022-23 with the Growth in International Arrivals and Leisure Trip Highlight Travel Industry Potential – Travel And Tour World

Date:

Saturday, November 30, 2024

India’s tourism sector has reaffirmed its importance to the economy by contributing 5% to the country’s Gross Domestic Product (GDP) for the fiscal year 2022-23, according to Union Tourism Minister Gajendra Singh Shekhawat. In a written response in the Lok Sabha, the minister detailed the sector’s performance, noting the significant role played by foreign tourist arrivals, medical tourism, and leisure travel.

Tourism GDP Contribution Over the Years

The percentage contribution of the tourism sector to India’s GDP has shown notable fluctuations over recent years. While it stood at 5.01% in 2018-19, the COVID-19 pandemic caused a sharp decline to 1.50% in 2020-21. A gradual recovery began in 2021-22 with a contribution of 1.75%, reaching 5% in 2022-23. This rebound underscores the sector’s resilience and its critical role in India’s economic landscape.

Also Read: Indian Tourism Minister GS Shekhawat Shares “Chalo India” Campaign to UK and European Tourists at WTM London to Boost Travel Sector

Foreign Tourist Arrivals and Trends

India recorded 9.52 million foreign tourist arrivals in 2023, highlighting the country’s global appeal. Of these, leisure travel emerged as the dominant purpose, accounting for 46.2% of total arrivals. Meanwhile, the Indian diaspora contributed 26.9%, emphasizing their role in driving inbound tourism.

The data reflects a diverse range of interests among visitors, from exploring India’s rich cultural and natural heritage to reconnecting with roots. This diversity continues to position India as a favored destination across multiple demographics and geographies.

Also Read: Gajendra Singh Shekhawat Identifies Tourism as the Key to India’s Economic Leadership

Medical Tourism: A Growing Opportunity

Medical tourism remains a significant growth area for India, supported by government initiatives such as the e-medical visa and e-medical attendant visa, which are now available to nationals of 167 countries. India’s reputation for high-quality and affordable healthcare services has made it a top destination for medical travelers seeking treatments ranging from complex surgeries to wellness therapies.

This focus on medical tourism not only enhances India’s global tourism appeal but also contributes to the country’s economic growth, bringing in substantial revenue and creating employment opportunities.

Domestic Tourism and the Impact of Airfares

When asked about the impact of rising airfares on domestic tourism, the minister stated that no specific studies have been conducted by the Ministry of Tourism to analyze this issue. However, the interplay between airfare affordability and domestic travel demand remains a critical area for consideration as the sector continues to recover post-pandemic.

Domestic tourism forms the backbone of India’s travel industry, and ensuring affordability and accessibility for Indian travelers will be key to sustaining long-term growth.

Key Government Initiatives Supporting Tourism

The government’s efforts to boost the tourism sector have included a range of initiatives aimed at improving accessibility, infrastructure, and services. The extension of e-medical visa facilities to 167 countries demonstrates a commitment to fostering international travel for specific purposes, such as medical treatment.

Furthermore, ongoing campaigns like Incredible India and state-specific promotions highlight the country’s diverse offerings, from historic landmarks and cultural experiences to adventure tourism and wellness retreats. These initiatives aim to position India as a top destination for both foreign and domestic travelers.

Also Read: Union Minister Gajendra Singh Shekhawat Inaugurates 7th India International Hospitality Expo, Celebrates Significant Role in Advancing India’s Hospitality Industry : What you need to know

Future Prospects for India’s Tourism Industry

India’s tourism sector is poised for continued growth, driven by its diverse attractions, government support, and evolving travel trends. As the world continues to recover from the effects of the pandemic, India’s ability to adapt to changing traveler preferences will be key to maintaining its competitive edge.

Investments in infrastructure, digitalization, and targeted marketing campaigns can further enhance India’s appeal as a global tourism destination. Addressing challenges such as rising airfares and ensuring equitable access to travel opportunities will also play a pivotal role in sustaining growth.

India’s tourism sector has demonstrated remarkable resilience and potential, contributing 5% to GDP in 2022-23 and attracting 9.52 million foreign tourists. With significant growth in leisure travel, diaspora-driven tourism, and medical tourism, the industry continues to be a cornerstone of the nation’s economy. As India builds on these achievements, its tourism sector is set to play an even greater role in driving economic development and cultural exchange on the global stage.

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