One of the oldest 
Most popular tourist destinations
Covers an area of 32, 87,263 sq. km, extending from the snow-covered Himalayan heights to the tropical rain forests of the south
7th largest country in the worldTourism is a state subject and quite often there are alignment, co-ordination and implementation challenges in terms of Centre-State coordination.
Lack of knowledge and training
There is excessive burden on hotspot destinations,
be it a hill stations or those located
seaside.
Regulatory environment
Need for tourism-friendly regulatory environment for ease of doing business and seamless travel
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From US$ 28.9 billion in 2018 to
US$ 50.9 billion Indian tourism and hospitality earnings as Visitor exports by 2028 |
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From US$ 75 billion in FY20 to
US$ 125 billion The travel market by FY27 |
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From US$ 32 billion in FY20 to
US$ 52 billion Indian hotel market including domestic, inbound and outbound by FY27 |
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From US$ 20 billion to US$ 40 billion Airline travel market by FY27 |
| Revive and develop declining urban infrastructure |
| Government lodges, Circuit houses, Duk Bungalows , Tea Estates etc can be revived under PPP model |
| Promote Wellness around the Pilgrimage Circuits |
| A Pilgrim will always be interested in various side activities beside doing “Darshan” which will help in rejuvenate the mind and body. Nothing better than promoting Yoga, Ayurveda, meditation and various traditional Indian naturopathy around the religious circuits |
| Investing on Caravan Tourism |
| The concept of Caravan tourism has gained immense popularity across the globe owing to the freedom and flexibility it provides, while holidaying vis-à-vis itineraries and accommodation. Considering the immense land area and the multitude of landscapes in India, Caravans and Caravan Parks are sure to add an exciting new facet to tourism in Incredible India. |
| Benchmarking the Identified Tourist Destinations & Improving Infrastructure & Connectivity to tourist destinations |
| Improvement on existing infrastructures like Last mile connectivity, Terminals, Helipads, Convention Centres, Parking facilities etc. |
| Leverage private-public partnerships (PPP) by encouraging participation |
| Make an assessment of the various state-owned Tourism Units and identify the units which can be operated on suitable PPP models and hereby promoting the various target opportunities. Promote investment in Tourism and Hospitality Sector, it is suggested that ‘Infrastructure’ status for hotel projects provided as per current cost-based criteria of `200 Cr. may be amended to `20-25 Cr. to enable inclusion of 2-3 star hotel category of hotels. Hence, reducing the cost of borrowing for potential investors and encourage creation of required tourism infrastructure. |
| Increasing Travel Facilitation |
| States may collaborate for core infrastructure development like Road, Railways and other Public Transportation across various identified integrated circuits. To promote ease of travel initiatives such as smart travel cards rail pass, tourist card etc can be introduced. |
| High-Value Offerings |
Allocate an amount of funding to developing ‘high-end’ tourism in India, to bring in wealthier visitors. This money can be spent on developing better transport infrastructure and encouraging innovation and digitalisation within the sector. |
| FEMA Rules |
| Re- look at policies of Reserve Bank of India ( FEMA ), so as to help make Indian travel companies global and address global markets, since India would be strong travel technology market. |
| Corpus Fund for Tourism |
| The government should create a dedicated corpus fund for tourism to encourage innovation, maintenance and development of existing and upcoming destinations as well as monuments. |
| Coverage Of Tourism Data Across Levels |
| Data will continue to be critical to delivering the Plan of building a Resilient Tourism Industry. The government needs to continue to make sure that public and private actors in the tourism sector have timely access to data on the ongoing impacts of the pandemic, the pace and nature of the sector’s recovery and consumer expectations and behavior. |
| New Rail Tourism Products |
| IRCTC should act like a GDS for Indian Railways. Coaches can play an active role by providing relatively low-cost transport and a means of inclusive access to destinations for those unable to access other modes of transport. Flexible Travel Passes across the network to spread the benefits of tourism across the country, as well as provide discounted attraction entry. Introduce more vista dome rail coaches as they provide an interesting facet to Rail Travel. Initiatives similar to Palace on Wheels should be developed across major tourist circuits. |
| Prioritize Destination Readiness |
| A coordinated multi-stakeholder approach that brings together the public sector with the private sector and the local community will be required in re-establishing operations and implementing effective policies when re-opening. In the current context, such plans will need to consider how to enhance the existing traveler journey experience by adding health components and integrating innovative technologies. The adoption of global health and safety protocols will also be essential in re-building traveler confidence as well as the continued support from government for the sector’s recovery. In addition to focusing on existing tourism hubs, particular emphasis should be placed on ensuring that secondary, tertiary, and even rural destinations, are equipped to accommodate future traveler inflows, while also ensuring safety of residents and visitors alike. |
FICCI
Federation House
Tansen Marg, New Delhi 110001
Ph: 91-11-23738760-70
Email: ficci@ficci.com; indiacentury@mckinsey.com
