India's forex earnings from tourism may touch $26 bn by 2015: Assocham

The country's foreign exchange earnings from the tourism sector are likely to grow at 13% per annum and touch $26 billion by 2015 from the current level of $20 billion annually, industry body Assocham today said.

"Growing at a compounded annual growth rate (CAGR) of 13%, India's foreign exchange earnings from the tourism sector are likely to reach $26 billion by 2015 from the current level of $20 billion," the chamber said in a statement.

Besides, the arrival of foreign tourists in India is likely to cross 80 lakh mark by 2015 from 70 lakh at present, with a CAGR of 7%, according to an analysis conducted by Assocham, ahead of the World Tourism Day tomorrow.

The state-wise analysis revealed that Maharashtra, Tamil Nadu, Delhi, Uttar Pradesh and Rajasthan are the top five destinations for foreign tourists and comprise 70% of the total number of foreign tourists visiting India.

Maharashtra tops the list with a share of 25%, followed by Tamil Nadu (17%), Delhi (11%), Uttar Pradesh (10%) and Rajasthan (seven%).

"The Centre should further push India's tourism industry as its contribution to the country's gross domestic product (GDP) is about 6.6% while its contribution to the total workforce is about 7.7% and accounts for six% of the total investments," Assocham secretary general D S Rawat said.

The foreign exchange earned through tourism is critical to combat the rising current account deficit (CAD) and the government should look to boost foreign tourist inflow by easing the visa regime and enter into agreements with various countries' to strengthen tourism cooperation, he added.

With over $17 bn earnings, tourism has emerged as India's fourth biggest foreign exchange earner after exports of petroleum at $60.8 bn, gems and jewellery ($43.3 bn) and transport equipments ($18.3 bn), the chamber said.

"In terms of growth in international tourism receipts, India has clocked a CAGR of 12.9% which is higher as compared to 9.5% at Asia-Pacific level and 6.1% globally," according to the analysis.

Tourists from the US constitute about 16% share in the total arrival of foreign tourists across India, followed by the UK at 11.9%.

Besides, Bangladesh at 7%, Sri Lanka (4.5% share) and Canada (3.8% share) are among the top five countries with maximum foreign tourist arrivals in India.