Tourism the next driving factor of Indian Economy

Aug 08: Indian tourism industry from the last couple of years has emerged as a major factor in the growth of Indian economy with substantial foreign exchange earnings. As tourism constitutes various other related sectors including hotels, hospitals, aviation, and shipping, it has a significant contribution to the over all revenue.

If we throw a glance at the statistical data, we will be pleasantly surprised to know that tourism as an industry has recorded a 12 per cent growth as far as foreign exchange earnings is concerned with the increasing number of inbound travellers. Though foreign tourists are the prime source of growth but complimentary sectors also make a good contribution to India’s GDP.

As per the latest research by an organisation, the inbound tourist flow has been increasing and is expected to increase at a rate of more than 12 percent in the coming four to five years. Again the health care sector that attracts foreigners on a large scale especially from developing countries can boost Indian contribution to global tourism, which is now less than 1%.

In fact it is now the ‘medical tourism’ that is gaining momentum in India with inexpensive and probably some of the best medical facilities in the world. According to the latest report of tourism industry, India’s medical tourism has registered an annual growth rate of 25 per cent and is expected to touch the $2 billion mark by 2012.

Various private healthcare-centres are providing world-class health care services at a very affordable price and primarily attracting patients from the South Asian countries along with Britain, United States, Gulf region and Africa. Realising the potential of tourism industry the Union Government has been allowing more and more patients by providing a special medical tourism visa, which can again facilitate the process of tourist inflow.

The popularity of India as one of the most favoured tourist destinations is also a result of extensive advertising and marketing strategy of the government, which it has started under the banner of ‘Incredible India’ and a great success so far. Again as tourism is an individual state-affair, states also realise the importance of natural heritage as prime source of income and started promoting domestic tourism by diversifying tourism products. Improved facilities in luxury hotels, beach resorts, with winter sports, adventure sports and others are to expand foreign tourist inflow to India.

The recent growth can also be seen on the web, as a huge number of travel and tourism websites have been made so far with the participation of private sector whose profit is based on the amount of queries (both inbound and outbound) they generate. As a result tour and travel companies along with hotel industry, car rental and aviation have registered some strongest influence in the growth chart. No doubt by 2020 tourism will contribute a lot to India’s GDP.