India Needs Its Tourism Sector For Growth, Jobs; Centre Looks At A Holistic Development Plan

The state, spanning across just 3,702 sq.km, welcomed about 8.7 million tourists while Paris received about 37 million tourists in 2023, as per France’s tourism department. The Secretariat decided not to look at 2024 tourist footfall numbers—the tourist arrivals further surged in 2024, buoyed by the Olympic Games.

Foreign tourist arrivals in the entire country, as per the official statistics, were lower compared to Paris alone.  

The statistics are something that should concern the Indian policymakers. Tourism is a dynamic sector that can play a key role in India’s journey to achieving the status of a developed nation by 2047. Today, tourism contributes over 13% to India’s total employment, next only to agriculture. The sector contributes 5% to the overall economy.

In 2023, the country’s tourism sector, which accounted for 5% of the overall economy, created 7.6 crore jobs.

Prime Minister Narendra Modi, who earlier posted a series of photographs from his Lakshwadeep tour on his social media handle, urging Indians to opt for domestic destinations instead of international hotspots, recently announced plans to develop the sector to attract tourists. “Recently, I had the opportunity to be among the people of Lakshadweep. I am still in awe of the stunning beauty of its islands and the incredible warmth of its people. I had the opportunity to interact with people in Agatti, Bangaram, and Kavaratti. I thank the people of the islands for their hospitality. Here are some glimpses, including aerial glimpses from Lakshadweep," the Prime Minister had posted on social media. 

Developing Tourist Destinations

The government has now embarked on a massive mission of developing 50 top tourist destinations as hotspot destinations in partnership with states, ensuring world-class facilities and connectivity.

Speaking at a recent event in Gandhinagar, Rajiv Gauba, Niti Aayog member and former Cabinet Secretary, noted that India as a whole attracts only 1.45% of international tourists travelling worldwide. “We have huge untapped potential," he said.

It is neither a surprise nor a secret that even smaller countries in the neighbouring region, such as Sri Lanka, Malaysia, Vietnam, and Thailand, attract more international tourists than India. According to government estimates, Thailand earned US$48 billion in 2024, while India earned about US$35 billion. 

These countries, which have been crafting their tourism policy with care, have consistently emerged as convenient, affordable, and tourist-friendly destinations with strong global marketing, easy visa policies, and well-developed infrastructure.

Challenges That Need To Be Addressed

Pollution and women’s safety issues, which are often discussed on social media, need to be urgently addressed for India to emerge as a foreign tourist-friendly country. Not only do the authorities need to create the right environment, but regular campaigns are also needed to counter the negative publicity and help rebrand India as a safe, modern, and welcoming destination.

The government can play a key role by simplifying visa procedures, expanding visa-free and visa-on-arrival, and improving air connectivity across the nation to more international cities.

Strengthening road infrastructure, clean amenities, multilingual signage, and digital tourist information centres can also enhance the visitor experience. These steps could ensure that India claims its rightful spot as one of the top foreign travel destinations in the world.

Government’s Thrust

The Centre is now looking at a mechanism by which hotel tariffs can be reduced—something that is one of the major stumbling blocks for tourists.

Imagine this: You will be easily able to book a star hotel anywhere in Thailand for an average of ₹4,000 to ₹7,000 a day. In India, a star hotel at this price point is still a distant dream.

"The tourism industry should focus on improving service quality, professional training, and customer experience to match international standards. Private players can develop new tourism products like wellness retreats, eco-tours, adventure travel, and cultural experiences that appeal to modern travellers," Union Tourism Minister Gajendra Singh Shekhawat had told The Secretariat.

This effort sits alongside a broader push to lift India in international rankings. He noted India’s climb on the Travel & Tourism Development Index, from 54 to 39 in 2024, with an internal goal to reach the top-35 by 2029. He also said that in the next five years, India will see a big push to boost sports infrastructure, which will also augment travel.

The private sector feels that India has immense potential to improve its foreign tourist arrivals by enhancing infrastructure, simplifying travel processes, opening air connectivity, and diversifying its tourism offerings. Better air connectivity, improved roads, clean amenities, and modern facilities at tourist destinations can enhance the visitor experience.

Speaking to The Secretariat, Subhash Goyal, Chairman, STIC Travel & Air Charter Group, and Chairman, Aviation and Tourism Expert Committee of the Indian Chamber of Commerce (ICC), said, "Expanding direct international flights to more Indian cities and last-mile connectivity will make travel more convenient. Simplifying the e-visa process, offering visa-on-arrival to more countries, and introducing long-term or multiple-entry tourist visas can further encourage foreign visitors."

Most of the tour operators want expansion of the sector to look beyond traditional circuits like the Golden Triangle. They want promotion of destinations like the Northeast, Ladakh, and the Andaman and Nicobar Islands.

"India has the potential to double its foreign tourist arrivals in the next decade and emerge as one of the top ten global tourism destinations. With its unique strengths in heritage, spirituality, wellness, and nature-based tourism, India holds tremendous untapped potential," Goyal said.

Lakhs of Indian tourists are already booked to fly out of the country to celebrate Christmas and herald the new year over the next few weeks. In 2024, more than two million Indians visited Thailand. The need of the hour is to create the right ecosystem to not only hold back domestic tourists, but to attract foreigners as well.     

Global Tourism Rankings

In the Global Tourism Rankings, published by the World Economic Forum, in their biennial Travel and Tourism Development Index (TTDI) 2024, India has been placed at the 39th spot, reflecting the sector’s post-pandemic recovery and performance. According to estimates, about 1.4 billion international tourist arrivals were registered worldwide in 2024 — an increase of about 11% from 2023. 

Tourist Arrivals 

• France~102 million 
• Spain~93.8 million
• United States~72.4 million
• Turkey~60.6 million
• Mexico~45.0 million
• Germany~37.5 million
• Japan~36.9 million
• Greece~35.95 million
• Thailand~35.55 million
• Austria~32.2 million

(Source: Global Tourism Rankings published by the United Nations World Economic Organisation 2024)