India needs to tap tourism potential

NEW DELHI India’s government must put tourism at the heart of its economic agenda and deliver on its manifesto promise of 2014, according to Tourism & Travel Council president and CEO David Scowsill.

Speaking at the recent Hotel Investment Forum India in Mumbai, Scowsill highlighted that India’s Travel & Tourism sector has extraordinary potential and is forecast to grow by 7.5% per annum over the next decade.

But growth remains largely untapped due to a lack of a co-ordinated approach to tourism policies.

In 2015, Travel & Tourism contributed 6.3% to India’s GDP, which is well below the global average of 10%. Additionally, international arrivals were around 8 million visitors a 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,” Scowsill added.

Scowsill stressed six priorities, which WTTC believes the government should address urgently, to boost domestic business and leisure travel and to dramatically increase international arrivals.

He called for the government to put tourism at the heart of its economic agenda and deliver on its 2014 manifesto promise to prioritise the sector as a driver of economic growth.

Other recommendations:

Agree on a responsible rate of GST, rather than implement a level of 18% tax, a range of 9% to 14% to boost the social and economic potential of the sector.

Invest more in 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 the current 30 days.

Improve infrastructure and 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 and private sector plan for aviation to satisfy the fastest growing domestic aviation market in the world by planning for the next seven to 10 years.

Scowsill concluded: “We commend President 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.”