Tourism And Hospitality

"Customers may forget what you said but they will never forget how you made them feel".

This tourism and hospitality industry sector is viewed as one of the key drivers of the world economy, shaping its growth by contributing through employment and cultural exchange. This sector caters to a host of services and activities comprising traveling, accommodation, food, beverages, recreation, entertainment, and other ancillary services designed for unforgettable experiences created in the tourism segment for business and leisure travelers.

The tourism and hospitality sector in India has evolved into a vibrant and one of the crucial sectors of the Indian economy. It assembles varied experiences for domestic and international tourists. Fanned by strategic initiatives and investments, this sector is sure to further grow and contribute to the socio-economic progress of the country.

The industry is driven by digital transformation. Online reservation systems, virtual tours, artificial intelligence-powered customer support, and data analytics all contribute to raising the bar on customer experiences while improving operational efficiency. But experiential tourism—new and authentic experiences—are what today's travelers are on the lookout for. Indeed, this kind of demand has seen an upsurge in adventure, cultural, and gastronomic tourism.

According to WTTC, in 2019, the travel and tourism sector contributed about 9.2 percent to the country's GDP, with earnings of INR 15,24,000 crore (USD 200 billion), apart from livelihood to around 42.7 million people, that is about 8.1 percent of total employment in the country.

Key Segments of Tourism and Hospitality Industry in India

Domestic Tourism

Domestic tourism has been the mainstay of the industry, powered by rising incomes, connectivity, and a growing propensity to travel on the part of citizens. The destinations that enjoy maximum popularity are Rajasthan, Kerala, Goa, and the Himalayan states, which offer numerous experiences in heritage, culture, nature, and adventure.

Inbound Tourism:

The rich cultural heritage, historical places, and diverse landscapes make India a popular destination for millions of international tourists every year. Bangladesh, the United States, and the United Kingdom contribute the largest number of inbound tourists to India. In the year 2019, as many as 10.89 million foreign tourists visited India, earning an overwhelmingly large amount as foreign exchange.

Tourism for Medical Treatment

High-quality healthcare services provided by India at competitive prices make it an emerging Medical Tourism destination. State-of-the-art treatments and surgeries are available in India, which has started attracting patients not only from neighboring countries but also from far and wide across the globe. With continuous improvements in medical technologies and infrastructures, this medical tourism business is likely to continue its exponential growth.

Adventure Tourism

From the diversified topography, India has emerged as an idyllic destination for adventure tourism. Activities such as trekking, river rafting, paragliding, and skiing have turned significantly popular, especially in the states like Himachal Pradesh, Uttarakhand, and Sikkim.

The Ministry of Tourism of the Government of India has initiated various steps to promote tourism and associated infrastructure. This involves:

• Swadesh Darshan Scheme: It aims at integrated development of theme-based tourist circuits.
• PRASAD Scheme: Aims to identify and develop pilgrimage sites, hence promoting pilgrimage tourism.
• e-Visa Facility: This facilitates visa formalities and helps to welcome many international visitors to our country.
• Dekho Apna Desh: It facilitates the places of relative obscurity in the country to be explored by domestic travelers.

Notwithstanding growth, challenges persist in this sector of tourism and hospitality. These include:

• Infrastructure: The infrastructure is getting better, but there is still much that is needed, particularly in the rural and remote parts.
• Regulatory Hurdles: The environment remains challenging to regulate, with permits and licenses needed in various contexts.
• Sustainability: The effect of tourism on the environment remains an area of increasing concern, particularly in areas with ecologically sensitive locations.
• Skill Development: Trained manpower within the hotel and tourism sectors is needed to handle international service standards better.

Prospects Ahead

The tourism and hospitality industry in India reflects a promising future. With continued government support, investment in infrastructure, and growth in sustainable tourism, this sector might do well. No doubt, technological change, especially with online booking platforms and virtual tours, can make a difference in the future of travel and tourism for the country.

Budget 2024 sounds the death knell to an optimistic roadmap for India's dynamic Travel & Tourism sector, galvanized by the effective organization of G20 meetings at sixty places. The international platform has not only provided an insight into India's richness in culture and unbelievable dynamism in economics, but has also set this country in the league of the best destinations for conference and business tourists. Central in the agenda of the budget is the strategic creation of iconic tourist centres backed by robust branding and marketing at the world stage. In the same vein, the government will ensure that the visitor experience is enhanced and that the improvement is in line with quality standards set for boosting the competitiveness of the industry internationally. The provision of long-term interest-free loans to the state specifically for the development of tourism infrastructure reaffirms the strong commitment to fostering local entrepreneurship in the interest of sustainable tourism growth.

The budget, therefore, provides for enhancing tourism infrastructure, mainly in areas of scenic beauty, to meet the growing demands for domestic travel, such as the Lakshadweep islands. Infrastructure projects in port connectivity and tourism amenities are being created to promote domestic tourism, boost economic activity, and provide employment. By and large, the 2024 budget sets a strategic course for leveraging India's diverse tourism potential as an engine for inclusive growth and development, fostering economic prosperity with the parallel objective of preserving and promoting rich cultural heritage.

Corpseed’s team of experts brings extensive experience and knowledge of the tourism and hospitality industry. We offer personalized services tailored to the unique needs of each business, ensuring that our clients achieve their goals and thrive in a competitive market.