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 the 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)
Travel and Tourism being the largest service industry in India was worth $234 bn in 2018. The industry has become the third-largest Foreign Exchange Earner in India with a 17.9% growth in Foreign Exchange Earnings (in rupee terms) in March 2018 over March 2017.
According to The World Travel and Tourism Council (WTTC), tourism generated $240 bn or 9.2% of India’s GDP in 2018 and supported 42.67 mn jobs which is 8.1% of its total employment.
The sector is predicted to grow at an annual rate of 6.9% to $460 bn by 2028 which is 9.9% of GDP.
FTAs in April 2019 were 7,71,353 viz-a-viz 7,45,051 in April 2018 registering a growth of 3.5%. Further to this, FTAs during the period January-April 2019 were 39,35,293 viz-a-viz 38,60,871 in January- April 2018 registering a growth of 1.9%.
During April 2019 total of 2,01,137 tourist arrived on e-Tourist Visa as compared to 1,57,094 during the month of April 2018 registering a growth of 28.0%. Further to this, during January- April 2019, a total of 11,08,665 tourist arrived on e-Tourist Visa as compared to 9,18,792 during January-April 2018, registering a growth of 20.7%.
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 Great Indian Travel Bazaar '19
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.
For more information, click here.
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.
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 %
The following initiatives have been undertaken by GOI:
1. A new category of visa "Medical Visa" has been introduced by Ministry of Home Affairs, Government of India, which can be given for specific purpose to foreign tourists coming to India for medical treatment
2. The Ministry of Tourism has included the promotion of Medical Tourism as new initiatives. The Marketing Development Assistance Scheme (MDA), administered by the Ministry of Tourism, Government of India, provides financial support to approved tourism service providers.
3. To boost medical tourism, the government today announced setting up of the National Medical and Wellness Tourism Board to provide help to those visiting the country for health care need. The Board, besides Ministry officials, will include other stakeholders such as hospitals, hoteliers, medical experts and tour operators.
The GST rates applicable on air tariffs are as below:
1. Travel by economy class - 5 %
2. Travel by other than economy class - 12 %
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