India’s Sustainable-tourism Industry To Grow Upto $152 Mn By 2032
India's sustainable tourism market, valued at USD 26.01 million in 2022, is projected to reach USD 151.88 million by 2032, growing at a compound annual growth rate (CAGR) of 19.3 per cent, according to a joint report by the Federation of Hotel and Restaurant Associations of India (FHRAI), KPMG and the PHD Chamber of Commerce and Industry (PHDCCI).
The report highlighted the market's potential to fuel the services sector and facilitate long-term development.
Amid mounting concerns about climate change, India's travel industry faces pressure to adopt more environmentally friendly practices. Despite India's comparatively low per-capita consumption rate, it is anticipated to emerge as the third-largest emitter of greenhouse gases globally.
The report underscored the need for India to decouple its economic growth from greenhouse gas emissions, especially with the rise in travel and tourism, which is contributing to a rise in per-capita emissions.
Titled 'Sustainability in Tourism,' the report emphasised the necessity for India's tourism and hospitality industry, projected to generate over USD 59 billion by 2028, to embrace responsible tourism practices promptly to minimise its carbon footprint and enhance its attractiveness as a tourist destination.
A significant shift towards sustainability is evident in the sector, with hotels and resorts increasingly adopting renewable energy sources such as solar, wind and geothermal energy to reduce their environmental impact. FHRAI anticipates this trend extending beyond large hotel chains to encompass smaller, individual establishments.
Eco-tourism, a pivotal segment within the industry, is forecasted to grow at a rate of 15.7 per cent from 2019 to 2027, reaching USD 4.55 billion. The report attributed this growth, in part, to the pandemic acting as a catalyst for the burgeoning interest in sustainable and experiential tourism.
In alignment with the sector's growth trajectory, the interim budget for FY25 allocated Rs 2,449.62 million to the tourism sector. The government aims to develop tourism infrastructure and promote various forms of tourism, including adventure tourism, eco-tourism, business tourism and religious tourism.
Additionally, measures will be taken to preserve tourist sites and protected areas to harness the sector's full potential.
