Government initiatives, increased industry participation, involvement of start-up ventures and emergence of India as a tourist destination are some of the key factors that have fuelled the growth of Travel and Tourism sector.
Strong growth in per capita income, rising young population coupled with changing lifestyles are leading to greater expenditure on leisure services. Indian Tourism is booming, leading to a huge growth in both business and leisure travel by foreign and domestic tourists and is expected to generate approximately US$ 275.5 billion by 2018.
A study report published by the World Travel & Tourism Council (WTTC) says that the year 2020, tourism in India could add another INR 8, 50,000 Crores to the GDP.
Over the decades, tourism has experienced continued growth and deepening diversification to become one of the fastest growing economic sectors in the world. Modern tourism is closely linked to development and encompasses a growing number of new destinations. These dynamics have turned tourism into a key driver for socio-economic progress.
Today, the business volume of tourism equals or even surpasses that of oil exports, food products or automobiles. Tourism has become one of the major players in international commerce, and represents at the same time one of the main income sources for many developing countries. This growth goes hand in hand with a increasing diversification and competition among destinations.
This global spread of tourism in industrialised and developed states has produced economic and employment benefits in many related sectors – from construction to agriculture or telecommunications.
The contribution of tourism to economic well-being depends on the quality and the revenues of the tourism offer. UNWTO assists destinations in their sustainable positioning in ever more complex national and international markets. As the UN agency dedicated to tourism, UNWTO points out that particularly developing countries stand to benefit from sustainable tourism and acts to help make this a reality.