India’s travel and tourism sector has a huge potential, but growth remains largely untapped due to a lack of a co-ordinated approach to tourism policies, said David Scowsill, president and CEO, World Travel & Tourism Council (WTTC). Speaking at the Hotel Investment Forum India in Mumbai, Scowsill highlighted that India’s travel and tourism sector has extraordinary potential and is forecast to grow by 7.5 per cent per annum over the next decade.
In 2015, travel and tourism contributed 6.3 per cent to India’s GDP, which is well below the global average of 10 per cent. Additionally, international arrivals were around eight million visitors per year, which is substantially lower than other countries. China receives 57 million visitors annually and Thailand 30 million.
“Travel and tourism is growing in India, but it comes from a low base compared to other countries in Asia. With the forecast growth for domestic and international tourism, we now stand at a crossroads. Now is the time for India to take off and fulfil its potential,” added Scowsill.
Scowsill stressed six priorities which WTTC believes the government should address urgently, to boost domestic business and leisure travel and to increase international arrivals:
- Put tourism at the heart of its economic agenda: the government must deliver on its 2014 manifesto promise to prioritise the sector as a driver of economic growth
- Agree a responsible rate of GST: rather than implement a level of 18 per cent tax, a range of 9-14 per cent would certainly boost the social and economic potential of the sector
- Invest more into the Incredible India campaign: look at other sources of marketing monies, whether from visa fees or private sector matching funds
- Continue the electronic visa programme implementation: extend into other countries and consider a two-year multi entry approach rather than current 30 days
- Improve infrastructure; raise the level of investment in airports, road and rail networks to satisfy the projected domestic business and leisure market growth
- Implement a co-ordinated public/private plan for aviation: satisfy the fastest growing domestic aviation market in the world by planning for the next 7-10 years.
Scowsill concluded, “We commend PM Modi’s current efforts to drive the growth of travel and tourism. India is a beautiful destination with a great deal of tourism potential for domestic and international travellers. Everything required to make India one of the world’s biggest travel and tourism economies can now be put in place. We encourage the government to adopt these six priorities, to ensure that the sector can create more jobs and stimulate growth in the economy.”
