According to the global tourism body’s latest research, the sector’s contribution to India’s GDP reached just over Rs 19.13 lakh crore in 2023 - almost 10% ahead of 2019 levels. Employment in Travel & Tourism grew by 10% to reach just under 43 million, 8% more than in 2019.

Domestic visitor spending was 15% ahead of 2019, reaching Rs 14.64 lakh crore however international visitor spending remained more than 14% behind 2019 last year - Rs 0.4 lakh crore less being spent by international visitors last year than in 2019.

Such strong growth in domestic visitor spending is evidence that domestic visitors have led the sector’s path toward post-pandemic recovery.

Foreign tourist arrivals to India improves

The foreign tourist arrivals (FTAs) to India increased at slowest pace in last 38-months at 0.3% to 6.00 lakh of FTAs in May 2024, compared with 41.3% surge to 5.98 lakh recorded in May 2023. The FTAs have increased 9.1% to 40.72 lakh in January-May 2024, compared with 133.1% surge to 37.32 lakh in January-May 2023.

Foreign exchange earnings (FEEs) from tourism rose 3.2% to Rs 17762 crore in May 2024 as compared to Rs 17206 crore in May 2023. FEEs moved up 22.5% to Rs 108362 crore in January-May 2024, as compared with Rs 88441 crore in January-May 2023.

FEEs in US$ terms during the month of May 2024 rose 1.7% to US$ 2130 million over May 2023. FEEs had stood at US$ 2095 million in May 2023. FEEs were US$ 13031 million in January-May 2024, up 21.1% as compared to US$ 10762 million in January-May 2023.

About 48.57% of FTAs were on account of leisure holiday and recreation, followed by Indian diaspora at 24.51%, business and professional 10.55%, medical 7.26% and others at 9.11% in January-May 2024.

Indian nationals departures

Indian Nationals Departures (INDs) increased 14.0% to 28.81 lakh in May 2024 from 25.26 lakh in May 2023. INDs have jumped 14.7% to 126.18 lakh in January-May 2023 from 110.00 lakh in January-May 2023. UAE account for 25.05% of INDs in January-May 2024, followed by Saudi Arabia 10.92%, USA 7.24%, Thailand 5.91% and Singapore 5.02%. Leisure holiday and recreation accounted for more than 40% of INDs, Indian diaspora above 30%, business and professional more than 15% and others close to 10%.

Outlook

As per the WTTC, the sector is forecast to be ahead of 2019 by the end of this year across all four metrics. WTTC projects that Travel & Tourism will contribute almost Rs 21.15 lakh crore to the Indian economy in 2024, an increase of 21% from 2019. Jobs are predicted to increase by 2.45 million this year, equivalent to one in 11 jobs in India. International visitor spending is expected to grow more than 17%, to reach Rs 2.85 lakh crore, while domestic visitor spending is projected to continue growing this year, with a 9.6% increase to reach more than Rs 16 lakh crore.

With the right government support, WTTC is forecasting that the sector could grow its annual GDP contribution to Rs 43.25 lakh crore by 2034, representing 7.6% of the Indian economy, and could potentially employ almost 63 million people across the country.

The Indian Government’s ambition to facilitate 100 million inbound tourists at the 100th anniversary of India’s independence in 2047, as part of the 2047 vision, will supercharge the Indian economy and make India one of the world’s most popular travel destinations.

WTTC forecasts that across South Asia, Travel & Tourism will contribute Rs 25.1 lakh crore this year, with jobs supported by the sector reaching 54.77 million by the end of 2024. Domestic visitor spending is expected to reach Rs 18.3 lakh crore this year whilst international visitor spending is anticipated to reach Rs 3.8 lakh crore.