Contribution of travel, tourism to GDP to rise by 7.5% in 2014

The contribution of travel and tourism to the country's GDP is expected to rise by 7.5 per cent to Rs 2,34,145 crore this year.
Travel and tourism had contributed Rs 2,17,810 crore to the GDP in 2013, showed a sectoral document for Tourism and Hospitality sector under the 'Make In India' campaign.
"Tourism is a big employment generator. For every USD 1 million invested in tourism creates 78 jobs," it added.
The document listed a series of factors as key drivers for tourism in the next decade. These include a growing recognition of tourism's contribution to employment and economic growth, availability of better infrastructure, focused marketing and promotion efforts and liberalisation of air transport.

Besides, it also cited growth of online travel portals, growing intra-regional corporation and effective public private partnerships that would fuel growth of the sector.
The reason to invest in the sector is that, "tourism in India accounts for 6.8 per cent of the GDP and is the third largest foreign exchange earner for the country", it added.

The UNWTO (World Tourism Organisation) has forecast that the travel and tourism industry in India will grow by 8 per cent per annum between 2008 and 2016, the document said.
Foreign exchange earnings from tourism are likely to show annualised growth of 14 per cent during the same period. The sector is the third largest foreign exchange earner after gems, jewellery and ready made garments, it added.

As per the document, initiatives such as availability of visa on arrival significantly influences tourist's travel plans to the country.
Recently the Indian government has also released a fresh category of visa - the medical visa or M visa to encourage medical tourism in India, it added.