India's heritage sites lag in forex earnings

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India's heritage sites lag in forex earnings

Sunday, 09 July 2023 | Archana Jyoti | New Delhi

India's heritage sites lag in forex earnings

A report by the Government’s think tank Niti Aayog has highlighted that despite being home to over 40 World Heritage Sites, India’s foreign exchange earnings in 2019 were meager, amounting to USD 30 billion.

This figure pales in comparison to countries like the UK and USA, which have 34 and 24 such sites, respectively.

The report emphasises the need for an aggressive marketing strategy to showcase India as a popular tourist destination and capitalise on the benefits of having a rich collection of heritage sites recognised by UNESCO.

India boasts a total of 32 cultural and seven natural World Heritage Sites.

The recently released report titled “Restoring Growth of Tourism in the Wake of the Pandemic” comes at a significant time as India hosts the G20 Summit. The report highlights the severe impact of the COVID-19 pandemic on the tourism industry, which was previously experiencing a growth rate of 3.5 per cent compared to the global economic growth rate of 2.5 per cent in 2019. However, during the pandemic, the industry has experienced a significant downturn.

The tourism sector's contribution to global GDP and employment has declined by 49 per cent and 19per cent respectively, despite government efforts to boost the industry. In 2019, tourism accounted for 8.8 per cent of total employment, 5.8 per cent of total exports, and 6.9 per cent of GDP, but these figures have significantly dropped to 4.7per cent, 7.3per cent, and 2.5per cent respectively.

A report highlights India's low share of the international tourism market at 1.2 per cent in 2019, compared to countries like Spain, the USA, China, the UK, and Thailand with larger shares ranging from 2.7per cent to 5.7per cent. The report attributes this disparity to poor infrastructure, connectivity, safety and security, lack of skilled manpower, inadequate promotion and marketing, and poor hygiene and sanitation.

To revive the sector, the report suggests focusing on cleanliness and sanitation, using a Safe Travel Stamp to rebuild tourist confidence. The stamp, launched by the World Travel & Tourism Council (WTTC), identifies governments and companies that have adopted global health and hygiene protocols. Many countries are currently using the Safe Travel Stamp to attract tourists.

The report also emphasises the importance of promoting Wellness Tourism and integrating it into the mainstream. It recommends providing skills and infrastructure for the alternative medicinal sector to tap into its potential and maximise its value within the tourism industry.

Additionally, the report highlights the disrepair of important monuments in India due to the lack of basic infrastructure and illegal construction activities. Efficient management of tourist sites, preserving cultural treasures, and enhancing the overall tourist experience are crucial to attract more visitors to India's historical landmarks.

The report criticises the poor functioning of the Swadesh Darshan Scheme for developing theme-based tourist circuits, calling for a review of fund disbursal processes and monitoring of tourist circuit projects.

India should explore adventure tourism, cruise tourism, and medical value tourism as potential sources of revenue. The report suggests waiving customs duty on adventure equipment imports, rescheduling loan dues, waiving statutory dues, and increasing insurance premiums.

Furthermore, the report proposes the creation of a 500 crore fund with annual investments to sustain the industry during crises like the COVID-19 pandemic.

NITI Aayog also recommends aggressive marketing of tourist sites through social media platforms, leveraging India's ranking as a low-cost destination with abundant natural and cultural resources to attract more tourists.

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