India’s tourism sector expected to spike this holiday season

ASSOCHAM says that there could be a 30% increase in tourism activity during holiday season this year; Rajasthan a preferred destination for inbound tourists The Dollar Business Bureau

Tourists take boat ride in front of City Palace in Udaipur, India. Tourism plays an important role in economic growth and employment generation in Rajasthan

Despite a sharp increase in airline fares and a slowing economy, the tourism sector in India could witness a leap this holiday season, according to a survey conducted by the Associated Chambers of Commerce & Industry of India (ASSOCHAM). According to the survey, the upcoming holiday season in India is expected to witness about 30% increase in the tourism activity comprising domestic tourists, outbound holidayers and inbound foreign visitors. While domestic, well-off outbound tourists are booking for destinations like Dubai, Hong Kong, Thailand, Malaysia, Singapore, Maldives and South Africa, those settling for domestic spots would be heading for Goa, Kerala beaches, and hills of Himachal Pradesh and Uttarakhand. Some area heading for Darjeeling, and other North Eastern destinations. These areas, besides Rajasthan, would be great hits among the foreign tourists landing in India, said ASSOCHAM. The number of Foreign Tourist Arrivals (FTAs) has grown steadily in the last three years reaching around 6.58 million in January – November 2014, but annual growth remains below the over 9% growth witnessed in 2011. The y/y growth in FTAs during January – November 2014 stands at around 7.1%, but this could increase sharply this year. According to ASSOCHAM estimates, the bookings for Christmas and New Year eve celebrations have been on a steady incline. D.S. Rawat, Secretary General, ASSOCHAM, said, “The improving business and economic sentiment have made high end professionals in the private sector as well as others inclined to spend more on leisure tourism this season as compared to last year 15%.” “The increase in the number of travellers for the New Year has kept the cash register ringing, bringing smiles back in the travel and hospitality trade,” added Rawat. Tourism plays a key role in the revival of Brand India and accounts for around 12.4% of the total employment in India. Globally, tourism ranks fifth as an export category after fuels, chemicals, food and automotive products. The international tourism industry is growing at the rate of around 3-4% annually and international tourist arrivals are expected to grow from approximately one billion in 2013 to around 1.8 billion by 2030.

This article was published on December 22, 2014.

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The Dollar Business Bureau - Dec 22, 2014 12:35 IST

India’s tourism sector expected to spike this holiday season

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