Committee Report - Tapping India’s Tourism Potential | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

India's diverse regions boast rich cultural heritage, including handicrafts, vibrant fairs, captivating folk dances, and mesmerizing music, making it a prime destination for tourism. The tourism sector serves as a significant source of employment, engaging both skilled and unskilled workers, while fostering national unity and global camaraderie. India stands out globally for offering a plethora of destinations, catering to diverse preferences and interests.

Impact of COVID-19 on Travel and Hospitality Sector:

• Acknowledging the profound impact of COVID-19 on the tourism and hospitality industry, the Committee proposed several recommendations, including:
• Temporarily suspending all working capital, principal, and interest payments for businesses in the sector.
• Extending repayment timelines or allowing for loan restructuring in line with relief measures announced by the central government and the Reserve Bank of India.

Adventure Tourism:

• Recognizing the growth potential of adventure tourism, the Committee highlighted that inbound adventure tourism in India sees an annual growth rate of 5-7%, while domestic adventure tourism experiences a substantial 20-25% growth. It proposed initiatives to promote India as a premier adventure tourism destination and encouraged the development of amusement parks in collaboration with states and union territories.

Potential and Prospects

Economic Impact and Employment Generation:

• Tourism has become a crucial driver of income and job creation in India, playing a pivotal role in poverty alleviation and sustainable human development. 
• It currently contributes 6.23% to the national GDP and accounts for 8.78% of total employment, providing livelihoods to nearly 20 million individuals across the country.

Foreign Exchange Earnings:

• India's tourism sector serves as a significant source of foreign exchange earnings, positively impacting the country's balance of payments. In 2008, the industry generated approximately US$100 billion, with expectations of reaching US$275.5 billion by 2018, fueled by a robust annual growth rate of 9.4%.
• Additionally, tourism has the potential to foster the emergence of micro-entrepreneurs, thereby generating further employment opportunities and yielding a high multiplier effect.

Global Impact and Growth Potential:

• Globally, tourism plays a vital role, contributing 10% to the world's GDP, 7% to global trade, and generating one in every 11 jobs worldwide, as per the World Tourism Organisation. 
• In India, the travel and tourism sector has the potential to expand significantly, potentially supporting 46 million jobs by 2025, contingent upon continued investments and implementation of favorable policies.

Government Initiatives and Investment:

• Efforts to develop 10 tourist destinations and enhance infrastructure under the Amrut programme signify a strategic commitment to bolster tourism in India. 
• Furthermore, the allocation of funds for modern amenities such as WiFi and CCTVs in the Indian Railways demonstrates a proactive approach to bolster domestic tourism, thereby stimulating growth in the hotel and aviation sectors and augmenting overall employment and GDP contribution.

Rural Development and Cultural Promotion:

• Tourism holds immense potential to uplift rural areas by spotlighting local culture and handicrafts, thereby enhancing living standards and curbing urban migration pressures. 
• It contributes to national income generation, employment expansion, tax revenue growth, foreign exchange earnings, and regional economic transformation.

Diverse Cultural Offerings:

• India's rich cultural tapestry, traditions, festivals, and myriad attractions make it an enticing tourism destination. 
• The country's cultural and traditional diversity is reflected in its tourism offerings, presenting a wide array of captivating experiences for visitors.

Conclusion

To realize the vision of positioning India as a premier global tourism destination by 2047, concerted efforts are needed to integrate various ministries' schemes and engage diverse stakeholders and local communities. Prioritizing interventions at both urban and rural levels is imperative to harness the full potential of India's tourism sector.