The Tourism and Hospitality industry is one of the largest service industries in India. Tourism is an integral pillar of the Make in India programme. Tourism plays a role of significant economic multiplier and becomes critical since India has to grow at rapid rates and create jobs.
India offers geographical diversity, world heritage sites and niche tourism products like cruises, adventure, medical, eco-tourism, etc. Incredible India has spurred growth in Tourists Arrivals and Employment.
India has moved 13 positions ahead from 65th to 52nd rank in Tourism and Travel Competitive Index (WEF); UNWTO Tourism Barometer (2016) currently ranks India at #40 in terms of global tourist footfalls.
Tourism tends to encourage the development of multiple-use infrastructure including hotels, resorts & restaurants, transport infrastructure (aviation, roads, shipping & railways) and healthcare facilities. Five tourism mega economic zones were announced in the previous budget to attract global tourism players to India and also drive tourism sector's contribution to GDP.
100% FDI allowed under automatic route
100% FDI allowed in tourism construction projects, including the development of hotels, resorts, and recreational facilities
For further details, please refer FDI Policy
Share in World Tourist Arrivals
Share in World Tourism Receipts
Growth in Foreign Tourist Arrival
Foreign Exchange Earnings growth rate
Seventh largest tourism economy in the world
Ninth largest in cultural resources and business travel in the world
14.62 mn jobs created by tourism in last four years (between 2014-2018)
India ranks first in the world in terms of direct contribution to employment (2016) by Travel and Tourism industry in India. Around 40.3 mn jobs were supported by Travel and Tourism in 2016 which accounted for 9.3% of the country's total jobs. Additionally, 25.9 mn new jobs were created by the industry in 2017.
The industry’s total contribution to GDP stood at $ 230 bn in 2017 accounting for 9.4% and is expected to further grow to $ 424 bn by 2027.
In 2016, foreign tourist arrival (FTAs) in India stood at 8.8 mn while domestic tourist visits to States/UTs stood at 1.6 bn. A growth of 8.4% was witnessed in FTAs in January 2018 over January 2017. 58.5% growth in FTAs was recorded for e-Tourist Visa in January 2018 over January 2017. By 2027, international tourist arrivals in India is expected to reach 15 mn, according to the World Economic Forum.
US company Airbnb has invested $ 75 mn in SoftBank backed hospitality firm Oyo in a funding round giving it access to Airbnb's global as well as Indian user traveller base
Realty firm Embassy group will invest $ 197.1 mn to develop four new hotels in Bengaluru as part of its expansion plan the in hospitality business.
Leisure Hotels Group to invest $ 14.6 mn to add 8 properties by 2020-end
Specialty Restaurants to invest $ 5.9 mn, to open 8-12 new outlets
Destinations circuits, resorts, hotels, etc.
Rural, Adventure, Medical, Pilgrimage, Film, Sustainable Tourism
Meeting Incentives Conferences & Exhibitions (MICE)
Packaged tour operators, cab services and recreational facilities etc.
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The Ministry of Tourism invites proposals to support cultural,music, dance, literary, sports, cinema and other events which have potential or create potential for attracting large number of tourists, both domestic and international. The support to these events would be decided on a case to case basis based on the potentialfor promotion of tourism as well as the benefits that would accrue from it for thepromotion of Incredible India brand, subject to the following basic minimum eligibility conditions:
(i) The event to be supported may be held in India or abroad.
(ii) The event should have been in existence since the last five years or should have completed at least 5 editions as of 31.12.2013 and should be supported by a certificate to this effect from a Chartered Accountant.
(iii) The event should have a total expenditure of at least INR 1.00 Crore for each edition supported by audited statements of expenditure on the event for last five years.
The GST rates applicable on air tariffs are as below:
1. Travel by economy class - 5 %
2. Travel by other than economy class - 12 %
The GST rates applicable for accommodation in hotels, inns, guest
houses, clubs, campsites or other commercial places meant for residential or
lodging purposes will depend upon the tariff per unit per day declared by the
respective accommodation establishment. The slabs of GST rates applicable
are given below:
1. Less than INR 1000- Nil
2. INR 1000 and above but less than INR 2500- 12 %
3. INR 2500 and above but less than INR 7500- 18 %
4. More than INR 7500- 28 %
i) 100% FDI is allowed under the automatic route in tourism and hospitality
ii) 100% FDI allowed in tourism construction projects, including the development of hotels, resorts and recreational facilities.
The following initiatives have been undertaken by GOI:
1. The government is in process to develop 5 ports as cruise tourism hubs. These are Mumbai, Goa, Mangalore, Chennai and Kochi. These terminals will have facilities such as hospitality, retail, shopping and restaurants.
2. 200 minor ports to be develop jetties for such cruise vessels.
3. The cruise tourism policy shall be introduced by government shortly.
By: Invest India
By: Invest India
By: Invest India
By: Invest India
By: Sanchi Padia
By: Preet Deep Singh
By: Anusha Agarwal
