Tourism Can Prove A Force Multiplier For Employment Generation

India has rapidly evolved into a unique tourist destination for the modern traveller because of its geographical diversity, rich ethnic heritages and diverse cultures. Through niche product offerings and supportive policies, India is slated to be among the top 10 tourism economies of the world by 2028, when international tourist arrivals are expected to touch a whopping 30.5 million.

The world over tourism is seen as a major driving force for an economy with a multiplier effect on associated industries like hospitality. The spill over of earnings from inbound tourism into other industries improves the economic conditions and standards of living of the local populace. 

The growth of the tourism sector, however, hinges on co-dependent metrics, like   connectivity and infrastructure, which in turn require construction of roads, airports, and railways by engaging the labour force efficiently. Ensuring the smooth supply of food for instance, necessitates that manufacturing, packaging, and transportation of food is done effectively. This co-dependency of tourism on associated sectors of the economy paves the way for employment generation across industries. 

Tourism generates approximately 12 per cent of India’s total employment annually. In 2019-20, tourism accounted for 15.34 per cent of the total jobs created in the country. By 2029, as many as 53 million jobs in the country are expected to spin out of tourism. 

 
(Source: Revised NAS 2020 for financial year 2013-14 to 2016-17 and NAS for financial year 2017-18 to 2019-20)

Unfortunately, the tourism sector suffered a setback during the past two years with the onset of the Covid-19 pandemic, the lockdowns that became imminent subsequently, and the travel restrictions imposed thereafter. Even during this period, however, the Union Ministry of Tourism took several measures to mitigate the effects of the pandemic on the sector. 

These measures encompassed realms such as fiscal and regulatory, confidence building and digitisation and are focussed on ensuring a higher growth trajectory for the tourism sector. The ministry has also nudged stakeholders, especially service providers, to engage with new innovations to help them cope with the pandemic induced shock.
 
The Emergency Credit Line Guarantee Scheme (ECLGS) covered through a liberal definition of MSME (micro small and medium enterprises) has been expanded to include tourism and hospitality stakeholders. Infrastructure status has been granted to exhibition-cum-convention centres. A separate liquidity window of Rs 15,000 crore has been released for the sector. Lenient loans have been approved for tour operators and guides, without collaterals.
 
The ministry has engaged with state governments to ensure that stakeholders in tourism were given relief on property taxes, water, electricity tariffs and that their tenure of licencing is extended. The ministry has also used its influence to ensure that revised incentives were available for MICE (meetings, incentives, conferences and exhibitions) events under the Champion Services Sector Scheme (CSSS). These initiatives have helped the sector recover and grow further. 

Notwithstanding the historic human misery brought on by the pandemic, all measures have been taken to bring about structural changes to ease the prick points of the sector, of which a significant step is the use of digital technology. The National Integrated Database of Hospitality Units (NIDHI) for creating a comprehensive national database of accommodation units in the country will help assess the availability of facilities at destinations and the requirement of human resources to help frame policies and strategies. This portal has now been expanded to cover tour operators and other tourism service providers. A taskforce has also been set up for the National Digital Tourism Mission for framing a road map and strategy for digitisation in the sector to enhance efficiency.   

To ease travels for international tourists, the Government of India has launched a scheme wherein five lakh tourists will get free visas. The Union Ministry of Tourism, in collaboration with the Union Ministry of External Affairs, has also appointed special officers for tourism in the top 20 Indian Embassies abroad. The strength of the tourism officers will be expanded based on the success of the initiative. Other schemes and plans are in the works that will promote Indian tourism and make India an extremely attractive destination for tourists.

The Purchasing Managers ‘Index (PMI), according to the estimates, was at a ten- and-a-half-year high in services at 58.4 in October 2021 (56.7 in August and 55.2 in September 2021) and continue to be in expansionary mode in March 2022. The dramatic jump in the PMI for services reinforces confidence in improved demand in the economy, which should lead to more jobs in the services sector, of which tourism is an important part. This turnaround in the sector has been possible because of the precautionary measures taken during the pandemic, including the rapid coverage of vaccination. Other steps taken during this period included strict SOPs for safety and hygiene, aggressive advocacy of Covid- appropriate behaviour   through social media, launch of SAATHI for awareness and training of stakeholders. 

The ministry has also utilised this period to effectively reinvent tourism in India. Keeping in mind the lifestyle and behavioural patterns that have become the new normal, focus is shifting towards creating a more sustainable, inclusive and resilient tourism sector. 

Another outcome of the pandemic that is already directly impacting the tourism sector in India, is the rise in preference for wellness and holistic holiday destinations by both international and domestic travellers. Increased awareness around India’s rich Ayurvedic culture and heritage is resulting in a major influx of health tourists. 

The Ministry of Tourism has also shifted its focus to boosting and promoting domestic tourism. ‘Dekho Apna Desh’ launched in 2019 is going to see more traction and promotion. With a crore vaccines being successfully administered, tourism is once again on the rise.  Domestic travel is already on the rise and is expected to reach higher levels than in pre-Covid times. The restrictions currently placed on international travels, ‘revenge’ tourism, and aggressive marketing have contributed to the trend. 

Direct employment generation from the sector is also expected to go back to pre-Covid levels with a restoration in consumer confidence, particularly because of the vaccination drive. According to an NCAER study, “with the suppressed desire to travel because of restrictions and reduced confidence levels during 2021-22, a 50 per cent increase can easily be seen in the subsequent year.”
 
The study also suggests that “if the government policies are to be prioritised and targeted towards the most important industries catering to tourists ‒ healthcare, food and transport; it will enable indirect employment generated through tourism to rise once again.”

Currently the Ministry of Tourism is working with the Ministry of Civil Aviation to increase connectivity in remote areas, with a special focus on the Buddhist Circuit. New international airports are in the pipeline and some older domestic airports are being upgraded to facilitate international travel. Lesser-known areas are also being promoted as tourist destinations and are being developed to include the requisite support infrastructure and amenities for the potential tourist influx. The Atmanirbhar Bharat Mission (ABM) will also get a fillip with India’s tourism industry playing a significant role in economic recovery creating new business opportunities and employment. 

(Article by Arvind Singh, Secretary, Ministry of Tourism, GOI)

Views are personal