We often get carried away with small successes, which should not be the case. A prime example is travel and tourism. The recently released Economic Survey highlights that the sector has returned to pre-pandemic levels and currently contributes around 5 per cent to GDP. What it does not mention, however, is that in previous years, this sector accounted for over 6 per cent of GDP. Globally, travel and tourism contribute 9 per cent to GDP. To put this into perspective, the sector contributes 9.5 per cent in the UK, 9 per cent in the USA, 11 per cent in Germany, 8.8 per cent in France, and 10 per cent across the EU.
Clearly, we have a long way to go, even if we aim merely to approach the levels achieved by other nations. Even within India, in 2015, travel and tourism accounted for over 6 per cent of GDP. In 2024, in absolute terms, we generate just slightly over one per cent of the total $2.36 trillion earned by the USA from this sector. The World Economic Forum’s Travel and Tourism Development Index 2024 has placed India at 38th among 139 countries. While we may take some solace in having improved from 54th place in 2021, there is still much progress to be made.
Surprisingly, India has everything needed to attract foreign tourists. The country boasts a wealth of heritage sites, spiritual tourism, river cruises, adventure tourism, wildlife experiences, natural wonders, and several cities ideal for MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism. Best of all, India has an extensive coastline with numerous beaches. By and large, Indians are also more hospitable than many other nationalities. The ongoing Maha Kumbh Mela, which has already drawn over 100 million visitors, is just one example of the vast potential for spiritual tourism. Certain northern and northeastern states, such as Assam, Arunachal Pradesh, Meghalaya, and Sikkim, derive a significant percentage of their GDP from tourism.
It is not that the government is unaware of this potential. Under the Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD), formerly known as Swadesh Darshan 2 (2022), the government approved 34 projects with an initial allocation of Rs800 crore. The problem, however, is that these allocations are meagre compared to the ambitious goals set. In the recently announced Budget, the Union government has proposed Rs3,300 crore in 50-year interest-free loans to states to develop iconic tourist destinations that meet global standards.
Given India’s rich history, every state has numerous places and monuments that could be promoted as iconic. UNESCO has already identified 43 World Heritage Sites, with the latest additions including the Moidams (burial mounds of the Ahom dynasty) in Assam, the Hoysala temples of Belur, Halebid, and
Somanathapura in Karnataka, and Shantiniketan. Beyond historical, cultural, and
spiritual attractions, India also offers breathtaking natural beauty. While the Taj Mahal and the Golden Triangle have been heavily promoted, it is time for state governments to take the initiative in marketing their own tourist destinations and creating attractive travel packages.
From January to October 2024, the latest period for which data is available, nearly 45 per cent of foreign tourists visited India for leisure, holidays, and recreation. Given this, states must identify key sites and invest in the necessary infrastructure, ensuring safety, security, and good connectivity to airports. Simply identifying and developing a tourist destination is not enough – global promotion is essential. One approach could be for state cabinets to hold meetings in different districts, following the example set by Modi in Gujarat, where national functions were celebrated in various locations to assess officials’ preparedness and encourage them to explore different regions. This also instils a sense of pride among locals regarding their state’s heritage.
International travel fairs could be organised to showcase newly developed tourist destinations, while MICE tourism should be actively encouraged. Effective communication is crucial – international tourists need to know that these are new, unexplored destinations off the beaten track. Legends and stories associated with these places should be widely publicised to attract interest.
Once states recognise the potential of tourism and the immense benefits it brings – job creation, hospitality sector growth, and foreign exchange earnings – each state will strive to maximise footfall at its tourist destinations, both old and new.