The future of travel after Covid looks bright.
Posted on May 16, 2022 by Ghoomophiro
Before the onset of the recent COVID-19 pandemic, the Indian travel and tourism industry was one of the most critical sectors in the world economy, contributing to nearly 10 percent of global GDP and providing employment to over 320 million people worldwide.
It expected an annual growth rate of 6.9 percent during 2019-2028 to reach $460 billion or approximately 9.9 percent of the country’s expected Gross Domestic Product (GDP) in 2028.
It also gives a decisive 10 percent contribution to the Gross Domestic Product (GDP) of over 15 percent towards employment and foreign exchange (forex) earnings of Rs 211,661 crore in 2019.
Further, the global tourism body predicted that the sector could create an additional 58 million jobs in 2022, to reach more than 330 million, though it would still be 1 percent below pre-pandemic levels; it will be up by over one-fifth (21.5 percent) of 2020 levels. Of course, it is assuming that the vaccine and booster rollout will continue at a good pace this year, and international travel restrictions will continue to be eased throughout the year.
Further, the United Nations Conference on Trade and Development (UNCTAD) has estimated a loss of $4 trillion to the global Global Domestic Product (GDP) because of the losses incurred in the tourism sector. The travel and tourism industry’s contribution to the global economy could reach $8.6 trillion in this financial year. However, it would still be 6.4 percent behind pre-pandemic levels, claimed new research from the World Travel & Tourism Council (WTTC).
By 2028, Indian tourism and hospitality are expected to earn $50.9 billion as visitor exports, and it was $28.9 billion in 2018. The travel industry in India is projected to reach $125 billion by the financial year 2027 from an estimated $75 billion in the financial year 2020. The Indian airline travel market was then estimated at $20 billion and is projected to double in its income size by 2027 due to a tremendously improving airport infrastructure and growing access to passports. The Indian hotel market, including domestic, inbound, and outbound, was estimated at $32 billion in 2020 and is expected to reach $52 billion by the financial year 2027, driven by the increasing demand from travelers and sustained efforts of travel agents to boost the market.
India has showcased its different tourism products and potential at the recent Arabian Travel Market, Dubai -2022. The Middle East has always been one of the primary target markets for Indian Tourism. The tourism ministry has also undertaken a ‘NamasteIndia’ campaign to encourage international visitors to travel to India during this mega event. Several state governments from India also participated in the event, showcasing their major tourist destinations. India was a holistic 35-day destination revolving around significant experiences, such as spirituality, heritage, adventure, culture, yoga, wellness, etc.
The tourism ministry has been aggressively promoting different tourism products and destinations. The primary focus has been given to the potential of Film Tourism, Wellness Tourism, Medical Tourism, ecosystem tourism, Luxury Tourism, and Adventure Tourism. By 2028, Indian tourism and hospitality are expected to earn 50.9 billion dollars, and the travel industry in India is projected to reach 125 billion dollars by the financial year 2027 from an estimated 75 billion dollars in FY20.
The importance of film tourism and the potential of India as an an-important destination for film-making, as the country has all physical geographical features and landscape, was also discussed at length. The government also showcased the possibility of north-eastern states as potential film shooting destinations. The role of the Indian diaspora for doing the publicity and promotion of the brand India in the overseas market was also discussed and sought.
