Role of Tourism Industry in India GDP
has been quite alarming since the past few decades.
Tourism industry has contributed enormously in the flourishing graph of India's economy by attracting a huge number of both foreign and domestic tourists traveling for professional as well as holiday purpose.
The tourism industry in India witnessed a stupendous growth in 2006. The growth in the inflows in India's tourism industry is calculated both in terms of business and vacations.
The number of foreign tourists arriving from all over the world rose from 0.37 percent to 0.53 percent as has been stated by UN World Tourism Organization (UNWTO) in the year 2006. This remarkable growth in the graph of tourism industry in India popularized the entire South Asia as one of the most spectacular tourist terminal. Indian tourism industry contributes to around 5.9 percent of the country's GDP and it provides employment to around 41.8 million of inhabitants.
Some of the most significant features of India's tourism industry or the Role of Tourism Industry in India GDP have been listed below:
- The percentage of foreign tourists in India has increased by 12.4 percent in one year, that is, from 2006 to 2007. In 2006, Indian tourist industry witnessed a growth of 14.3 percent, which reached around 3.89 million in 2007
- The foreign tourists arrival led to a robust growth in the foreign exchange earnings that increased from USD 5.03 billion during January-October 2006 to USD 6.32 billion during January-October 2007, which is apparently a 25.6 percent rise.
- Deeming the growing rate of the tourists arrival in the country, the Indian tourism industry designed a wide spectrum of holiday packages and cheaper airfares to attract more tourists.
- Nonetheless, the outgoing graph of tourism industry in India is in no way lagging behind from the inbound one. People traveling from India to abroad or states within India have increased by 25 percent.
- The United Nations World Tourism Organization (UNWTO) has estimated the outgoing tourists to reach around 50 million by the year 2020.
- According to the European Travel Commission, the average expenditure per trip of Indian tourists traveling abroad has increased from USD 611 in 2000 to USD 822 in 2006
- The booming success of Indian tourism industry has led to a drastic change in the hospitality department as well. The increase in the ratio of tourists resulted in the increase of room rates and also setting up of a wide range of hotels and other residing areas.
- A number of international hotels such as the Hilton, Accor, Marriott International, Berggruen Hotels, Cabana Hotels, Premier Travel Inn (PTI) and Inter Continental Hotels groups have professed about making some large-scale investments to append 65,000 additional rooms to suffice the needs
- India is most likely to set up forty hotels of global brands by 2011. The hospitality segment in India is assumed to reach USD 11.41 billion in the coming two years
Following are the few benefits ensured by the tourism industry in India GDP in order to boost up the GDP of India:
- The Indian tourism industry offers online booking system, one of the basic proofs of technological advancement in this sector. These online bookings are applicable for booking the air tickets via Internet by logging on to the website and also booking the hotel room of the place to be visited
- The online tourism industry has accounted for a turn over of USD 800 million which is apparently 14 percent of the entire travel and tourism industry
- The Role of Tourism Industry in India GDP also features medical tourism that includes traditional therapies like yoga, meditation, ayurveda, allopathy and other conventional systems of medicines is currently estimated at USD 333 million and is most likely to reach USD 2.2 billion by the year 2012.
Major Industries in India GDP