The travel and tourism industry has tremendous potential to rise by 2.5 per cent provided the budgetary allocation is enhanced from the current 0.9 per cent of the total allocation to atleast 0.15 per cent in 2018-19, a study conducted jointly by ASSOCHAM-Yes Bank has said. It has proposed developmental interventions including tourism infrastructure development and the emergence of tourism themes.
Releasing the study here recently, the ASSOCHAM spokesperson said, “The formation of National Tourism Authority (NTA) also needs to be taken up on priority and position it as an important authority.
“NTA could be the nodal agency for several activities like investment promotion, marketing, escalation resolutions, capturing and dissemination of more real-time tourism statistics, developmental planning and implementation coordination, extending support to State counterparts etc.” The study also called for lower GST slabs for the Tourism Industry to make it more competitive as compared to other affordable global destinations.
Also India is fast developing into a medical & wellness tourism hub of Asia because of superior quality healthcare services at a low treatment cost. Treatment of major surgeries in India costs around 20 per cent of that in developed countries, the study said favouring creation of medical hubs through PPP to boost medical tourism. “Wellness tourism should be promoted by marketing indigenous methodologies such as Yoga and Ayurveda,” said the study.
The total contribution of travel and tourism to Indian GDP was $208.9 billion ie 9.6 per cent of GDP in 2016, and is forecast to rise by 6.7 per cent in 2017 and 10.0 per cent of GDP in 2027. Further travel and tourism investment in 2016 accounted for 5.7 per cent of total investment ($34.bn).
It should rise by 4.5 percent in 2017 and 5.7 percent per annum over the next ten years to USD 61.8bn in 2027, 5.7 per cent of total, as per the business chamber.
It also noted that India witnessed 8 million foreign tourist arrivals in calendar year 2015. As per Economist Intelligence Unit (EIU) estimates, the number of foreign tourist arrivals is expected to rise up to 12 million by 2019, growing at a CAGR of 9.2 per cent.