Infrastructure development
Destinations circuits, resorts, hotels, etc.
Snapshot
Incredible India
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.
- By 2028, Tourism & Hospitality is forecasted to earn $ 50.9 bn as visitor exports compared to $ 27.3 bn earned in 2017
- By 2028, direct contribution to employment is expected to grow to 5.3% of the total employment from the current contribution of 4.9% in 2017
- By 2030, India is expected to be among the top five business travel market
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
1.2 %
Share in World Tourist Arrivals
1.9 %
Share in World Tourism Receipts
13.4 %
Growth in Foreign Tourist Arrival
10.2 %
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)
Industry Scenario
$ 424 bn contribution to India's GDP by 2027
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.
Growth Drivers
Incredible India campaign
Extending international tourism business in IndiaE-Tourist VISA facility
e-Tourist VISA, e-Business VISA & e-Medical VISA (currently, 163 countries have e-tourist visa facility)Special Tourism Zones (STZ)
5 STZs in partnership with states to boost tourism in IndiaMedical tourism
Economical treatment, quality healthcare infra & highly skilled doctorsCoastal tourism
Promote intra-regional trade among Indian Ocean Rim (IOR) countries
Recent Announcements
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
Emerging segments
Rural, Adventure, Medical, Pilgrimage, Film, Sustainable Tourism
Business segment
Meeting Incentives Conferences & Exhibitions (MICE)
Support functions
Packaged tour operators, cab services and recreational facilities etc.
Investible Projects
Investment Opportunities in Tourism & Hospitality
-
Projects
264
-
Opportunity
$5.4 bn
-
Promoters
96
-
District
114
-
Private Projects
6
-
Govt. Projects
258
Major Investors
Data on Map
Latest in Tourism & Hospitality
Report
Travel & Tourism Economic Impact 2018: In…
Report
Incredible India 2.0: India’s $20 Bn Tourism…
Report
India Tourism Infrastructure Report
Project
Adopt A Heritage
Magazine
Atulya Bharat (Apr- Jun 2018)
Scheme
Swadesh Darshan
Event
The Great Indian Travel Bazaar '19
Event
SATTE 2019 - South Asia's Leading Travel…
FAQ
Frequently
Asked Questions
What is the minimum eligibility for sponsorship of events having potential for promotion of tourism to and/or within India?
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.What rates will be applicable for travel by air?
The GST rates applicable on air tariffs are as below:
1. Travel by economy class - 5 %
2. Travel by other than economy class - 12 %What rates will be applicable for accommodation in various hotels/ guest houses/ inns in India?
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 %How much FDI is allowed under tourism & hospitality?
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.
What are the initiatives taken by the Indian government in the cruise tourism sector?
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.
Stakeholders
Government Ministry/Department
Industry Associations
- Association of Tourism Trade Organizations, India
- Adventure Tour Operators Association of India
- Federation of Hotel & Restaurants Associations of India
- Hotel Association of India
- Indian Association of Tour Operators
- Indian Exhibition Industry Association
- Indian Heritage Hotels Association
- National Restaurant Association of India