Recent years, and 2022, have seen significant shifts in the tourism industry because of worldwide events. The Indian economy showed resiliency and growth even while the rest of the globe struggled with rising inflation, interest rates, and a cost-of-living crisis.
The combination of fewer income shocks, robust local demand, and helpful government policies helped India achieve this outperformance.
The growth of India’s tourist sector is expected to continue. Travel bans and vaccine mandates may remain in effect for some time while the world continues to deal with the consequences of the COVID-19 epidemic.
However, there is reason to be hopeful about the future of tourism in the region, as the Indian economy has shown resilience and growth, and as popular places like the Maldives have seen outstanding recovery.
About Travel & Tourism Industry in India – Significance & Rising Trends
With so many unique sights to see and a long and illustrious history, this country consistently ranks among the top tourist hotspots in the world. Because of its unique history and culture, as well as its varied plant and animal life, the country’s tourism business has flourished.
The tourism industry is India’s eighth largest contributor to GDP. In 2018, India’s tourist industry brought in US$247.3 billion, up 6.7% over the previous year, and accounting for 9.2% of the country’s GDP.
Let us see the key factors driving the rise of the tourism industry in India post-Covid-19.
1. Vaccination Drive
Immunisation efforts against COVID-19 in India began on January 16, 2021. The primary objective of the campaign was to provide all citizens with free vaccinations. Nearly 200,000,000 doses of vaccination were given out in the first 18 months of this programme, proving its success. This helped open up the Indian economy and attract tourists.
2. Wellness and Health Travel
India has a very affordable healthcare system with access to top-tier medical professionals and cutting-edge technology. The health and wellness sector in this country has gained international recognition. Bringing together Eastern healthcare philosophy with Western medical competence, India has seen a significant increase in medical tourism.
In May of 2022, the government of India launched two initiatives called “Heal in India” and “Heal by India.” The overarching goal of these initiatives is to fortify India’s traditional medicine sector and elevate the country to the position of a global medical value hub.
3. The Growth of Domestic Travel
Domestic tourism in India saw a huge uptick in the wake of the outbreak. Rising disposable income and a larger working class in India are likely driving this expansion. Leisure travellers have spent more money in the country than business travellers have.
Apart from these, there are some Government initiatives that also helped the growth of the travel and tourism industry in India. These initiatives include:
- Swadesh Darshan Scheme – The Ministry of Tourism started this flagship programme in 2014–15. The program’s objective is to maximize India’s potential as a tourist destination by promoting theme-based tourism.
- NIDHI [National Integrated Database of Hospitality Industry] – is geared towards enabling enterprises via the use of technology. The scope, scale, structure, and capability of the global hospitality industry are the focus of this programme.
- E-Tourist Visas – This programme was first introduced by the Indian government in October 2014. The goal of this initiative is to make it easier for visitors from other countries to get tourist visas. As a result of this programme, tourism in the country has increased.
- Advertising via campaigns – Through its ‘Incredible India’ campaign, the Indian government has encouraged international travel and brought international attention to India’s storied cultural traditions. The campaign’s ultimate goal is to increase foreign interest in visiting India.
Future of Travel & Tourism Industry in India – Why 2023, is the right time to grow your tourism business?
The World Travel & Tourism Council (WTTC) predicts that by 2024, the travel and tourism industry in India would have contributed more to the country’s economy than it did before the pandemic began.
The travel industry can expect a number of new developments in 2023 thanks to the restoration of normalcy and the subsequent increase in tourism.
Travel Trends in 2023 – Here’s What to look out for.
1. Indians will make travel a priority.
In 2023, Indian tourists are expected to spend more than any other nationality. In addition, there are still a lot of people at well-liked tourist destinations, and flights are selling out quickly.
Weekend trips will increase in popularity this year as a means of vacationing. Those between the ages of 23 and 40 are the most likely to indulge during their vacations.
2. Currency fluctuations
Currencies are very volatile because ongoing wars, war hysteria, and pandemics all influence economies. Even with advanced reservations, the fluctuating value of the Indian rupee means that travel expenses can easily derail a traveler’s well-laid-out spending plan.
3. Discounts and special offers can really boost traffic
Before committing to a primary service provider, customers investigate available discounts and special offers. Now that money isn’t just a means of payment but also a commodity to be traded, it’s crucial for travel companies to be listed on the platforms of money service businesses if they want to remain competitive.
4. “Save while you spend” is a way to plan a trip
This option will remain popular. Travelers have grown accustomed to the concept of “travel now, pay later” during the previous two years. Fear of another pandemic-like crisis prevents most people from spending their savings on vacation, even when they wish to do so.
That’s why it’s reasonable to spread out the cost of a trip across several installments. This way, after using the services, people don’t have to worry about spending all their savings.
5. The demand for travel agencies will rise.
The travel industry is expected to grow as a result of rising demand, although the offline segment (bookings made through traditional travel agents) is expected to grow at a faster rate and capture a larger share of the market.
Travel agencies will need to increase their spending on web technologies to make bookings easier for customers if they want to survive. Largely due to POS solutions and technology, this will allow airlines to concentrate on features like self-service, touchless travel, biometrics, and artificial intelligence.
Also Read: How the travel market globally is also showing rapid growth and the factors driving this growth.
Key Takeaways,
Despite the operational challenges that were faced by the Travel & Tourism Business in India, post-pandemic, travel is back to where it was before the pandemic. Travelers would be expected to go to all parts of the world, even if that means splurging sometimes.
Planning would seem to be a regular theme. So, doesn’t it look like a promising opportunity to grow your tourism business in India now?
Tourism Business in India FAQs
Q.1. What is the travel industry growth rate in India?
The travel and tourism industry is expected to generate $18.91 billion by the end of 2023. With a compound annual growth rate (CAGR) of 13.47% from 2023 to 2027, the market is expected to be worth US$31.35bn by that year.
Q.2. What is the future of the travel & tourism business in India?
The travel and tourism sector is becoming more forward-thinking as a result of the incorporation of new travel trends into the sector’s ecology, making travel more accessible to the general people. Most transactions now take place digitally, and most users prefer contactless payment options.
Q.3. What is the future of travel agency business in India?
The travel business will always have to adapt to new trends and a changing environment. Online booking has been a big reason why travel agencies have gained so many customers.
Q.4. Is the travel and tourism business profitable in India?
One of the most profitable companies in the tourism business is a travel agency. At the same time, to grow a business in the market, you need a good plan and other things.
Q.5. Why is it important to grow your tourism business in India in 2023?
It makes up 6.23 percent of the national GDP and 8.78 percent of all jobs in India. Nearly 20 million people now work in the tourism business in India.
To Conclude,
The Indian government has invested much in infrastructure improvements to attract more tourists, and this trend is expected to continue. The FICCI predicts that by 2027, India’s tourism industry will be worth US$ 125 billion.
Contact us at Sparkleminds, if you are one of those successful business owners looking to expand your travel & tourism business in India in 2023.
