India underperforms its tourism potential

Source-This post on India underperforms its tourism potential has been created based on the article “Making Incredible India work” published in “Business Standards” on 27 May 2024.

UPSC Syllabus–GS Paper-3– Changes in Industrial Policy and their Effects on Industrial Growth.

Context-The article highlights India’s 39th ranking in the World Economic Forum’s latest biannual Travel and Tourism Development Index (TTDI), which indicates a below-par performance in a high-potential business opportunity. The industry accounts for about 6 percent of GDP and provides just 80 million direct and indirect jobs.

What are the findings of the index?

1) India’s Recovery and Positive Aspects in the TTDI-Despite the ranking not being strictly comparable to the 2019 study due to changes in index parameters, several data subsets suggest that India has recovered since the pandemic.

A) India is among the top 10 countries in three resource criteria: natural (sixth), cultural (ninth), and non-leisure (ninth).

B) The country also ranks 18th for price competitiveness, 26th for competitive air transport, and 25th for ground and port infrastructure.

2) India has the largest travel and tourism sector in South Asia and is ranked as the top lower-middle-income economy in the study, which covered 119 nations.

Read more-Tourism Sector in India

What are the challenges faced by the tourism sector?

1) Critical Enabling Gap –There are key enabling gaps, such as internet connectivity, health and hygiene and environmental sustainability etc.

2) India’s Share and China’s Impact- In 2021, India received 1.54% of international tourist arrivals, with a considerable portion being non-resident Indians. Despite China’s extended lockdown in 2021, India doesn’t seem to have gained much, given that China ranks eighth in the latest TTD.

3) Lack of Quality Infrastructure in Tourism– In India, besides metro rail in two cities, public transportation like inter-city buses and trains isn’t as good as Indian airports and air travel. Unlike in the West, where people of all classes use public transport, rich and upper-middle-class Indians usually avoid it. This lowers India’s price competitiveness and affects tourism performance.

The government aims to boost GDP by $1 trillion by 2047 through tourism, aiming to make India a key tourism spot, as outlined in the Dharamshala Declaration at last year’s G20 meetings. Starting with improving cleanliness and livability for all citizens would be a good initial step.

Question for practice

What are the recent findings of the Travel and Tourism Development Index (TTDI)? Highlight the challenges faced by the tourism sector?