India’s travel and tourist sector is experiencing a significant upward trend, with the World Travel and Tourism Council predicting an annual GDP growth of 7.1% over the next decade. This sector has a profound impact on the economy, contributing USD 199.6billion to GDP. With the recent allocation of INR 2 479 crore by the Union Budget 2024-25, further potential can be unlocked. This funding is expected give the industry a strong boost and propel it to new levels in the coming year.
Sachin Alug (CEO, NLB Services) highlighted India’s unique place in the global tourism scene due to its rich culture, diverse religions and varied natural landscapes. Alug stated that India is one of the most popular tourist destinations in the world, offering a variety of experiences ranging from culinary and wellness tourism to spiritual and adventure tourism.
The tourism sector is expected to be a major driver for job creation in India as it expands. By 2024, it is expected that the sector will generate 39.5 millions jobs. This number will rise to 42.3 by 2025. Alug argues that tourism is a powerful multiplier of employment. “Each direct tourism job generates multiple indirect employment across related fields, such as hospitality, logistics, IT and local artisanship.”
About 31 per cent of the jobs will be direct jobs, including tour guides, hotel employees, and tour operators. The remaining 69 per percent will be indirect jobs, which include supply chain management, logistic support, IT support and landscape maintenance. The integration of technology in the travel industry, especially with online booking systems, data analysis and other technologies, is also driving the demand for IT professionals.
In India’s tourism industry, emerging trends show a growing demand for adventure tourism, wellness retreats and culinary experiences. Travellers increasingly seek immersive experiences to learn about local culture and taste. Alug said that India’s culinary and wellness tourism, along with its adventure and adventure offerings, are attracting both domestic and international tourists.
Spiritual tourism is a major attraction. Cities like Varanasi and Bodh Gaya continue to attract visitors looking for spiritual enlightenment. India’s health tourism sector is expanding rapidly. India, which is currently ranked 10th on the Medical Tourism Index(MTI) for 2020-2021 will likely climb higher up the global rankings. This surge in medical travel is projected to increase healthcare employment. The number of nurses will rise by 12 percent, doctors by 10%, and other healthcare workers by 15%.
Hilton’s report reveals that Indian young travellers are motivated by sports, entertainment, and outdoor adventure. Sport tourism is on the increase, with 47 percent of Gen Alphas and Gen Zs planning trips around major sporting events such as the FIFA Club World Cup & Women’s ODI Cricket World Cup. Music festivals, particularly K-pop concerts are also on the list. 38 per cent of Indian travellers are eager to attend live events.
India’s backpacker market is also growing, as it caters to younger travellers who are looking for budget-friendly options with opportunities for socializing and exchange of cultures. This segment creates new roles for hostel manager, event coordinators and digital marketers. According to industry insights this market could add an additional 5% to the overall employment in tourism.
The demand for eco-friendly and sustainable properties is increasing. Travellers are seeking out more authentic, environmentally-friendly experiences. It is also notable that “workcations” or weekend getaways have become more popular, especially among professionals seeking to combine work with leisure. Alug explained that “flexible work arrangements allow professionals the freedom to choose scenic places to work from. This in turn boosts creativity and productivity.”
India’s tourism and travel industry is set to grow in the future, with both domestic and foreign tourism expected to increase. This expansion will be driven by visa exemptions, increased international flight options and the desire for personalized travel experiences. India will remain a top destination for travellers as they seek unique and tailored travel experiences.
The sector’s robust development, coupled with emerging trend and government support, signals an exciting future for India’s Tourism Industry, creating significant economic contribution and job opportunities in a wide variety of sectors.
