India’s travel & tourism industry to grow 7.3 per cent in 2014: WTTC
ETW Staff– Mumbai
India’s travel and tourism industry is expected to grow by 7.3 per cent in 2014, outperforming the general economy by 2.5 percentage points, however average spending by international tourists is likely to fall, says World Travel and Tourism Council (WTTC) in its annual economic impact report.
Revenues gained from domestic tourism rose by 5.1 per cent in 2013 and is expected to increase by 8.2 per cent in 2014, WTTC said in its report released on March 19, 2014. However, the report says, amount that international visitors spent in the country can slow to 2.9 per cent compared to 6.2 per cent in 2013.
David Scowsill, president and CEO, WTTC, said, “Inbound tourism is continuing to grow both in terms of international tourist arrivals and international tourism receipts. But, it is the domestic market which will see particularly strong growth in 2014 with more investment and more Indians travelling.”
The Government of India has recently announced that it proposes to extend visa on arrival and Electronic Travel Authorisation for tourists from 180 countries and to speed up the application process for those still requiring a paper visa to only three days.
Scowsill says WTTC and WTTC India Initiative welcome this historic initiative. “It will give a necessary boost and competitive advantage to India against other destinations in South Asia and Middle East. This will also provide a major thrust to jobs and employment both direct and indirectly linked with the tourism sector in India. We hope the Government ensures an effective rollout of this much-anticipated programme before the ensuing tourist season in 2014. Long term, we would also encourage India to move towards e-visa applications.”
WTTC is the global authority on the economic and social impact of the travel and tourism industry. WTTCs annual economic impact report 2014 for India shows travel and tourism’s economic contribution is expected to grow by 7.3 per cent this year, outperforming the general economy by 2.5 percentage points.
A study undertaken by WTTC and UNWTO in 2012 (The Impact of Visa Facilitation on Job Creation in the G20 Economies, May 2012. UNWTO and WTTC) shows that India will gain from improvements to its visa regime. The research estimates that improved visa facilitation could result in up to six million more international visitors for India, resulting in US$ eight million more spend and creating 1.8 million jobs over three years.
Scowsill added, “This latest announcement is a significant step towards achieving these substantial economic gains. A simple additional step of adding the capability for multiple entry to these visas on arrival for a longer period such as six months could allow India to capitalise on the long-term potential from travel and tourism.”
According to the research, in 2013 travel and tourism contributed INR 6,631.6 billion to the economy of India and generated 35 million jobs.
