NEW DELHI: India needs to tap into a relatively easy opportunity for job creation in the tourism sector at a time when the rise of AI, protectionism and supply concerns are challenging the services and manufacturing sectors, the Bureau of Economic Research said on Monday.
India’s tourism industry is showing signs of recovery post-pandemic, with the country expecting to attract over 9.2 million foreign tourists in 2023, up 43.5% from the previous year. Meanwhile, the hospitality industry is set to create a record amount of new supply by adding 14,000 rooms in 2023 to cater to the growing needs of tourists, the report noted.
Citing the World Economic Forum’s (WEF) Travel and Tourism Development Index (TTDI) 2024 report, the Economic Survey 2023-24 highlighted the need to improve tourism services and infrastructure, and develop a skilled workforce.
“While the environment for service sector job creation due to the rise of AI and manufacturing job creation due to rising protectionism, transport costs and supply concerns is challenging, the tourism sector is a relatively easy area for job creation. India must not miss out on this opportunity,” asserted the study tabled in Parliament on Monday.
To formalise employment in this sector, the Ministry of Tourism has launched the ‘Incredible India Tourism Facilitator Certification Programme’.
The organisation said it aims to develop a talent pool of skilled tourism facilitators across the country through its digital platform which will provide online learning opportunities and certification courses.
The survey acknowledged that India’s Travel and Tourism (T&T) sector, like other economies, is being affected by global inflationary pressures and slow capacity recovery.
“However, the decline in price competitiveness since 2021 has been modest, at just 0.7 percentage points compared to other countries. India’s decline is particularly small at just 0.1 percentage points compared to 2021, reflecting the government’s consistent efforts to maintain stability despite the economic slowdown caused by the COVID-19 pandemic,” it said.
India has earned foreign exchange earnings of over Rs 23 lakh crore through tourism, showing an increase of 65.7% over the previous year.
According to the survey, the country’s foreign exchange earnings as a share of global tourism receipts will increase from 1.38% in 2021 to 1.58% in 2022.
Similarly, he said the hospitality industry has grown to meet the needs of a growing number of tourists and improve the overall experience of guests.
“An additional 14,000 rooms will be added in 2023, creating the highest new supply ever, taking the total chain-affiliated hotel rooms in India to 183,000,” the survey said, adding that hoteliers are increasingly leveraging technology to personalize guest experience and improve operational efficiencies.
Hotels are also adopting innovative operational strategies such as leasing or managing external restaurant, spa and lounge brands to leverage existing concepts that attract hotel guests and increase revenue. The average room rate increased to Rs 7,616 from Rs 6,704 in FY24, up 13.6% year-on-year.
The study noted that the tourism industry is embracing the digital revolution, saying, “One such initiative is e-marketplaces designed to facilitate interaction between tourists and accredited tourism facilitators and guides through web and mobile applications.”
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Published on July 22, 2024 at 11:27 IST
