India's Inbound Tourism To Grow At 12% CAGR From 2022-2027: Report
The number of tourists coming to India and the tourism businesses are expected to expand thoroughly at a compound annual growth rate (CAGR) of 12 per cent from 2022 to 2027, according to a recent Nangia Andersen report. An increase in disposable income, growth of the middle class, and increasing awareness of India as a tourist destination are cited as the major causes of India's growth in inbound tourism.
According to the report, the top source markets for India’s inbound tourism are the United Kingdom, the United States, Sri Lanka, Canada, and Bangladesh.
Tourism is a sector that includes various industries such as hospitality, railways, aviation, food & beverages. Due to the pandemic, inbound tourism in India was severely affected, and the number of foreign tourist arrivals (FTAs) declined by over 80 per cent in 2020 compared to the previous year.
Suraj Nangia, Managing Partner and Head (of Government and Public Sector Advisory), Nangia Andersen LLP, said, “The report aims to provide insights into the current scenario of Inbound tourism in India. It can be leveraged to create and implement policies and initiatives that aim to enhance the attractiveness of India for visitors and improve their experience during their stay. Additionally, the report is anticipated to assist investors and developers in identifying opportunities for growth and investment in the tourism industry.”
The report also highlights the economic benefits as well as the economic challenges in the inbound tourism sector.
According to the data collected by the report, the Golden Triangle (Delhi, Agra, and Jaipur), Goa, Kerala, Rajasthan, and the Himalayas are listed among the most attractive tourist places.
Inbound tourism in India also generates several employment possibilities, and growth opportunities for small and medium-sized enterprises and also prospers foreign exchange earnings.
The report also identifies that safety measures, the working of bureaucrats, and the lack of ample infrastructure can impose serious challenges to the growth of inbound tourism.
"Our comprehensive report addresses five key priority areas within the tourism industry, namely Green Tourism, Digitization, Skill Development, Nurturing Tourism MSMEs, and Destination Management, added, Poonam Kaura, Partner, Government & Public Sector Advisory, Nangia Andersen LLP said.
There is a need for public and private synergy to boost this inbound tourism, the report concluded.
The Knowledge report was presented and released during the 12th edition of the Great Indian Travel Bazaar (GITB) in association with FICCI, organized by the Ministry of Tourism, Government of India, and the Tourism Department of Rajasthan, held in Jaipur.
