Wednesday, June 26, 2024

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The World Travel and Tourism Council (WTTC) 2024 Economic Impact Research (EIR) highlights a significant recovery in India’s travel and tourism sector, with domestic tourism as the key driver.

Research suggests that while domestic tourism is fueling the sector’s recovery, international travel spending is still below pre-pandemic levels.

According to the latest findings, the sector’s contribution to India’s GDP has reached INR 19.13TN in 2023, surpassing the 2019 level by nearly 10%.

Employment in the travel and tourism sector grew by 10%, reaching just under 43MN, up 8% from 2019.

Domestic visitor spending was 15% higher than in 2019, totaling INR 14.64TN. However, spending by international visitors was down 14% compared to 2019, with international visitors spending INR 0.4TN less last year compared to 2019.

The significant growth in domestic visitor spending shows that domestic tourists have been crucial in the region’s post-pandemic recovery.

Julia Simpson, WTTC President and CEO, said; “India’s travel and tourism sector is bouncing back with considerable vigour, driven by a surge in domestic tourism.

“While international visitor spending is still growing, the incredible support of domestic tourists demonstrates the resilience and potential of this dynamic sector. With continued strategic efforts, India is poised to shine as a global tourism powerhouse.

“Government of India’s ambition to facilitate 100MN inbound tourists on India’s independence anniversary in 2047, as part of the @2047 ambition, will supercharge the Indian economy and make India one of the world’s most popular travel destinations.”

Regional Outlook:

WTTC predicts that travel and tourism across South Asia will contribute INR 25.1TN this year, with sector-supported jobs reaching 54.77MN by the end of 2024. Spending by domestic visitors is expected to reach INR 18.3TN, while spending by international visitors is estimated to reach INR 3.8TN.

Annual Forecast:

Across all metrics, the sector is expected to surpass 2019 levels by the end of this year.

WTTC projects that travel and tourism will contribute about INR 21.15TN to the Indian economy in 2024, up 21% from 2019. Employment is forecast to grow by 2.45MN, representing one in 11 jobs in India.

International visitor spending is expected to grow by over 17% to reach INR 2.85TN, while domestic visitor spending is expected to increase by 9.6% to over INR 16TN.

Decade Forecast:

With the right government support, WTTC predicts that the sector can increase its annual GDP contribution to INR 43.25TN by 2034, accounting for 7.6% of the Indian economy, and potentially employing around 63MN people across the country.

As part of the @2047 vision, the Indian government’s goal of attracting 100MN inbound tourists by the 100th anniversary of India’s independence in 2047 is set to significantly boost the economy and establish India as one of the world’s leading travel destinations.

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