10 Reasons Why the Indian Tourism Industry is a Great Investment Opportunity

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  1. The expanding middle class and increasing disposable income in the country are driving the growth of domestic and outbound tourism. Total outbound trips increased by 8.7 per cent to reach 19.9 million in 2015, while inbound tourist volume grew at a Compound Annual Growth Rate (CAGR) of 6.8 per cent during 2010–2015.
  2. Foreign Tourist Arrivals (FTAs) during the month of December, 2016 were 10.37 lakh as compared to 9.13 lakh during the month of December, 2015 and 8.85 lakh in December, 2014. There was a 13.6 per cent growth in FTAs in December, 2016 over December, 2015.
  3. Tourist arrivals on e-Tourist Visa (e-TV) witnessed a year-on-year growth of 196.6 per cent to reach 66,097 tourists in August 2016; this can be attributed to the e-TV visa being expanded to include 150 countries compared to the previous 113 countries.
  4. The hotel and tourism sector attracted around US$ 9.23 billion worth of Foreign Direct Investment (FDI) from April 2000 to March 2016.
  5. 86 Memoranda of Understanding (MoUs) worth around Rs. 15,000 crorewere signed at the first Incredible India Tourism Investment Summit 2016, for the development of tourism and hospitality projects.
  6. Foreign Exchange Earnings (FEEs) during the month of December, 2016 were Rs.16,805 crore as compared to Rs. 14,152 crore in December, 2015 and Rs.12,988 crore in December, 2014.
  7. The tourism industry is expected to generate 13.45 million jobs across sub-segments such as restaurants (10.49 million jobs), hotels (2.3 million jobs) and travel agents/tour operators (0.66 million).

 

  1. India’s Ministry of Tourism plans to help the industry meet the rising demand for skilled manpower by providing hospitality training to students as well as certifying and advancing the skills of existing service providers.

 

  1. India rose 13 places from the 65th to the 52nd rank in the World Economic Forum’s Travel and Tourism Competitiveness Index (TTCI) in 2015.
  2. India was the top international tourism source market for Dubai in 2016, and brought in 1.8 million overnight tourists, reflecting a 12 per cent growth over 2015.

 

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Sources: India Brand Equity Foundation, Travel and Tourism Economic Impact 2015 India, Ministry of Tourism Press Information Bureau (Government of India), BW Hotelier, The Huffington Post