G20 summit will boost India's travel and tourism industry

With the rapid improvement in infrastructure and connectivity, the country has become an attractive global destination

The tourism sector is considered a key driver for inclusive economic growth, involving local people and environmental sustainability. The historic G20 meetings in Delhi, attended by top world leaders, have been a spectacular success. Coming on the heels of India’s glorious Chandrayaan-3 and solar missions, the G20 summit has added to India’s crowning world stature and heft. Today, the world recognises it is India’s moment. As the world’s fastest growing economy, it is attracting a lot of business travellers. With the rapid improvement in infrastructure, connectivity and beautification of various towns with G20, India now provides an attractive global destination for travel and tourism.

 

During India’s G20 Presidency, tourism was taken up as one of the key sectors. Four G20 tourism working groups were set up for developing policies to promote sustainable and inclusive tourism. Several themes were identified, including green tourism, adventure tourism, digitalization, destination management, skilling and MSMEs. All concerned, including various states, worked together to strengthen infrastructure, promote cultural heritage, preserve diversity and achieve sustainable development. Prime Minister Narendra Modi at the G20 summit on tourism in Goa emphasised the sector’s "great potential for employment generation, social inclusion and economic progress."

In the run-up to the G20 meetings, tasks were taken up to replenish the heritage monuments, upgrade infrastructure and improve connectivity. These included advancements in transportation, accommodations, and conference facilities. Numerous airlines planned addition of huge fleets of aircraft and direct flights to various unconnected destinations. One has to experience Delhi now after the recent G20 meetings to see the difference.

The Ministry of Tourism designated 2023 as the 'Visit India' year. When more than 60 cities were selected to hold more than 220 meetings till November, several non-metro cities like Udaipur, Guwahati, Indore, Jodhpur, Surat and Thiruvananthapuram were included. As per sources, these cities have already started recording a surge in hotel prices, pointing to a surge in tourists.

India is a remarkable tourist destination, offering myriad experiences, including 40 UNESCO World Heritage sites, archaeological remains of ancient civilisations, wildlife in national parks and sanctuaries, the world’s highest mountain ranges, expansive beaches, the magnificent desert and a rich cultural heritage. India is an all-embracing confluence of religions, traditions, and customs. The highlights of heritage lie in its unparalleled treasure of its art, diversity, cultural traditions, architecture, classical dance, music, cuisine, flora and fauna and the innate secular philosophy of its people. Every state is resplendent with different styles of temples, gurdwaras, mosques, monasteries, and churches, many of which have been declared heritage sites for their antiquity and craftsmanship. Sacred cities such as Varanasi, Haridwar, Amritsar and Bodh Gaya offer a tranquil environment of religious beliefs and spirituality.

The government’s thrust can be seen from the surge in the budgetary allocation of $ 2.1 billion for the travel sector in this year’s Union Budget, along with identifying 68 destinations/sites under the PRASAD (Pilgrimage Rejuvenation and Spiritual Augmentation Drive) Scheme.

In addition to the themes identified above, a destination-centric approach was adopted for the coordinated development of 50 new destinations as tourism centres. These included several new locations like Kashi, Kedarnath, Statue of Unity and various Buddhist sites, etc. In accordance with the theme of digitalisation, there were deployment of technologies like artificial intelligence, AR/VR etc. to help travellers plan their visits and provide virtual tours and simulations of historical sites and cultural experiences.

To gauge the significance of this sector, according to the World Travel & Tourism Council (WTTC), this sector contributed Rs. 15.7 trillion to the Indian economy in 2022; the number is expected to grow to Rs 16.5 trillion this year. By 2030, the tourism sector may contribute $250 billion to the country's gross domestic product (GDP), generate employment for 137 million people, and earn $56 billion in foreign exchange.

According to the India’s Tourism Minister, the arrivals of foreign tourists surged 166 per cent in the first four months of 2023 compared to the same period in 2022. Between September 7 and 11 (when Delhi hosted G20 delegates), the average daily rate (ADR), a key metric used by hoteliers to measure room revenue, surged four-fold to Rs 26,000 from the average Rs 6,000 in 2022, according to data by RateGain Travel Technologies’ Adara division. Travel companies, like tourHQ, have recorded an upsurge in demand for tour guides, especially in the cities hosting the G20 meetings. With the current global focus on India and huge improvement in infrastructure and connectivity, it is expected that the trend will continue even after the meetings end in November.

During the April Meeting in Siliguri, focus was given to adventure tourism as a "vehicle for achieving Sustainable Development Goals by 2030." Adventure travel is inherently connected to the well-being of both natural environments and local communities, making it a sector that can readily contribute to sustainable development.

Tourism has wide-ranging implications for the economy and some of it may be seen only subtly. As an economic activity, it creates an ecosystem which supports inclusive growth, be it hiring local youth, encouraging participation of women or promoting local arts, crafts culture and cuisine. Leveraging the supply chain, the industry can provide business opportunities to small and medium enterprises thereby enabling local livelihoods. The sector presents a multi-pronged development opportunity enabling both employment generation and infrastructure development thereby creating a sustainable pathway for our citizens.

As India hands over the G20 presidency to Brazil in November and South Africa takes the post in 2024, the spotlight would shift to those regions. The thrust on tourism in India would continue. Altogether, the G20 forum would have provided a booster to tourism in these regions.

(The writer has been India’s executive director in the World Bank; secretary, culture, government of India; and chairman of the Competition Commission of India)

These are the personal opinions of the writer. They do not necessarily reflect the views of www.business-standard.com or the Business Standard newspaper)