India’s travel and tourism sector, despite experiencing overall growth, has seen a decline in the World Economic Forum’s rankings, dropping to the 39th position in 2021. This is a drop of 10 places since 2019, placing India behind countries like China and Brazil. The index evaluates 119 countries on various factors related to tourism development, highlighting critical weaknesses in India’s sector such as inadequate transport, information technology, infrastructure, and tourist facilities, as well as a challenging business environment.
Despite India’s diverse culture and rich architectural heritage, the country only holds a 1% share of the international inbound tourism market. The tourism ministry has identified issues such as inadequate infrastructure, poor connectivity, safety and security concerns, lack of skilled manpower, promotion and marketing challenges, and poor hygiene and sanitation in tourist destinations. In response to these challenges, the finance minister announced a framework for rating iconic tourist destinations based on the quality of facilities they offer, providing states with long-term interest-free loans for development.
One of the setbacks for the Indian tourism sector in the recent fiscal budget was the slashing of the global tourism promotion budget by 97%, reducing it to just INR 30 million. Additionally, there has been a 60% reduction in the budgetary allocation for the regional connectivity scheme UDAN, which aims to revitalize unused and underused airports in tier-2 and tier-3 cities. These budget cuts hinder efforts to promote India as a tourist destination and improve connectivity within the country.
The ministry’s report emphasizes the need for further improvement in India’s tourism infrastructure, including accommodation, transport, and information and communication facilities. Despite high scores in price competitiveness and cultural and natural resources, India lags behind in tourism policies, air-transport infrastructure, and tourist service facilities. The sector has seen growth in areas like hotels, restaurants, first aid, hygiene facilities, and amenities, but challenges persist in ensuring quality and accessibility for tourists.
India’s travel and tourism sector remains the largest in South Asia, but its ranking decline in international assessments reflects the need for improvement in various areas. The World Economic Forum’s index serves as a reminder of the room for growth and advancement in India’s tourism industry. With ongoing efforts to address infrastructure shortcomings, promote tourism destinations, and enhance overseas promotion, India’s travel and tourism sector can work towards a more competitive position in the global market.
