Economic survey shows rise in foreign tourists in India, indicates revival in tourism

India sees increase in foreign tourist arrivals pin 2023, showed economic survey.

In the post-pandemic period, India's travel and tourism sector has shown strong signs of revival with foreign tourist arrivals (FTAs), one of the laggards in this space, showing signs of growth, the Economic Survey 2023-24 highlighted.

The industry recorded over 92 lakh foreign tourist arrivals in 2023, clocking a 43.5 percent year-on-year (YoY) increase.

The tourism sector in India is rapidly expanding, with India being ranked 39th in the World Economic Forum's Travel and Tourism Development Index (TTDI) 2024, the survey said.

India earned foreign exchange receipts of over Rs 2.3 lakh crore through tourism, indicating a 65.7 percent YoY increase. India's share of foreign exchange earnings in world tourism receipts increased from 1.38 percent in 2021 to 1.58 percent in 2022.

Domestic tourism

When it comes to domestic tourism, 29 new sites have been identified for development under the PRASHAD (Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive) scheme which caters to the augmentation of tourism infrastructure at pilgrimage and heritage sites.

Out of the total sanctioned amount of Rs 1,621.14 crore for the projects under the scheme, 62.7 percent has been disbursed, the survey added.

The government has also revamped its Swadesh Darshan scheme in the form of Swadesh Darshan 2.0 with an outlay of Rs 3,800 crore. The mission aims to create a robust framework for the integrated development of tourism destinations. Under the scheme, 57 destinations across 32 state government and Union Territory administrations have been identified to date. Twenty-nine projects have been sanctioned at a total cost of Rs 644 crore.

Job creation

The economic survey also mentioned that India's travel and tourism (T&T) sector has been influenced by global inflationary pressures and delays in the recovery of T&T capacity, similar to other economies. However, the decline in price competitiveness since 2021 has been minimal compared to its peers, with only a 0.7 percent drop. India's decline is particularly slight at just 0.1 percent from the 2021 levels, which reflects the government’s consistent efforts to maintain stability despite the slowdown caused by the Covid-19 pandemic, the survey said.

The World Economic Forum's TTDI (Travel & Tourism Development Index) 2024 report emphasises the need for improvements in tourist services and infrastructure, and the development of a skilled workforce.

In a challenging environment for employment generation in services due to the rise of AI and manufacturing due to rising protectionism, transportation costs and supply concerns, the tourism sector represents a relatively low-hanging fruit for job creation, according to the survey which added that India has to seize this opportunity.

To formalise employment within this sector, the Ministry of Tourism has initiated the Incredible India Tourism Facilitator Certificate Programme. This programme aims to create a skilled cadre of tourist facilitators nationwide through a digital platform that offers online learning opportunities and certification courses, the survey added.