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Hospitality And Tourism Sector Likely To Grow To $48 Billion By 2020.

India has a remarkable growth in the travel and tourism sector and is expected to create 13.45 million jobs across sub-segments such as Restaurants (10.50 million jobs), Hotels (2.3 million jobs), and travel agent/ tour operator (0.66 million) in the coming years.

Indian hospitality and tourism industry has moved up 13 positions to 52nd rank from 65th in Tourism & Travel competitive index.

"The inbound tourism industry in India is in a great shape currently. The rising interest of travelers from across the globe indicates a healthy shift and a growth in the Indian tourism sector. Unlike the past, there is an increase in the number of visitors looking to spend their vacation or explore exotic Indian destination. This growth can also be attributed to the introduction of e-visas to many countries coupled with decreasing airfares. The number of FTAs (foreign tourist arrivals) in January 2016. The government has taken a series of proactive steps to promote India as a great round the year tourist destination for the international tourists", said Pradip K Das, Director Finance and CFO, India Tourism Development Corporation (ITDC) Ltd, while speaking with BW Businessworld.

With an expanding middle class, better infrastructure, extension of e-tourist visa to 150 countries and several initiatives by the government such as Incredible India and Atithi Devo Bhava, the country is witnessing a phase of incremental growth in the sector.

According to the data released by Department of Industrial Policy and Promotion (DIPP), during the period April 2000-December 2016, the hotel and tourism sector attracted around $9.93 billion of FDI.

Das appreciates the government’s effort to boost the sector saying, “There is a great opportunity for tourism in India. The government has already given high priority to tourism as a contributing segment for economic growth. The target is to achieve the 16-million-tourist mark by 2020. This will give a lot of opportunities to tour operators, tourist guides, hoteliers, and transporters. It will also give an opportunity to the government to collect more taxes.”

India is expected to move up five spots to be ranked among the top five business travel market globally by 2030, as business travel spending in the country is expected to treble until 2030 from $30 billion in 2015.

However, with growth come challenges too. “The biggest challenge being untrained efficient workforce. Though many institutions provide knowledge, lack of practical training has hit the industry hard. But soon this issue would be resolved as the government is taking special initiatives under Skill India to promote practical exposure,” said Das.

International hotel chains will likely increase their expansion and investment plans in India and are expected to account for a 50 percent share in the Indian hospitality industry by 2022, from the current 44 percent.

 

The sector will have to counter stiff competition from nearby destinations like Singapore, Dubai, Malaysia, Thailand, China, and others to stay in the bright spot for a long time.