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Tourism has the potential to flourish across all regions—ranging from vibrant cities to remote rural, tribal, hilly, and forested areas. It is one of the few sectors that can simultaneously boost GDP, create employment opportunities, and enhance foreign currency earnings. The expansion of tourism often compels governments to improve infrastructure by building roads, developing diverse accommodations, and strengthening transportation networks.

Beyond economics, tourism fosters cultural exchange, connecting people from different parts of the world. As tourism expands into remote corners of the country, it not only drives regional development but also encourages local entrepreneurship. With the right initiatives, even the most marginalized communities can benefit. In short, tourism has the capacity to generate widespread income growth, stimulate employment at all levels, and act as a true multiplier for economic development.

Present Status of Tourism in India

According to the World Travel & Tourism Council (WTTC) Economic Impact Research 2024, India’s tourism sector has staged a strong recovery, with domestic tourism leading the revival. The sector’s contribution to GDP reached ₹19.13 lakh crore in 2023, nearly 10% higher than 2019 levels. While domestic visitor spending rose 15% above pre-pandemic levels to ₹14.64 lakh crore, international visitor spending remained more than 14% below 2019 levels in 2024.

WTTC President & CEO Julia Simpson noted in the Council’s June 28, 2024 report: “India’s Travel & Tourism sector is bouncing back with remarkable vigour, driven by a surge in domestic tourism.”

Tourism as an Employment Generator

India’s labour economists estimate that the country must generate 1.6 crore jobs annually over the next decade to achieve full employment. Of this, around 25% must be accessible to unskilled workers, about 50% for semi-skilled workers, and the remaining 25% for highly skilled individuals. Tourism stands out as perhaps the only sector capable of providing opportunities across all these categories—creating jobs for people with minimal education as well as for highly qualified professionals.

WTTC data indicates that in 2024, India’s tourism sector contributed ₹21.15 lakh crore to GDP, accounting for 6.6% of the national economy, while supporting 46.5 million jobs (9.1% of total employment). This highlights a crucial distinction: while most sectors generate fewer jobs relative to GDP growth, tourism demonstrates a far higher job intensity.

Looking ahead, WTTC projects that the sector will support over 48 million jobs in 2025 and nearly 64 million by 2035, underscoring its central role in India’s employment strategy.

ITDC 2024: Key Highlights of Indian Tourism

The Indian Tourism Data Compendium (ITDC) 2024, published by the Ministry of Tourism, further reinforces this growth story:

International Tourist Arrivals (ITA): 18.89 million in 2023, surpassing the pre-pandemic peak of 17.91 million in 2019 (a growth of 5.47%).

Indian Departures Abroad: 27.88 million in 2023.

Domestic Tourism: 2.5 billion visits across states and UTs, with an annual growth of 44.98%. Foreign Exchange Earnings (FEE): $28.077 billion in 2023, reflecting 31.5% annual growth.

Global Share: India’s share in international tourist arrivals was 1.45%, while its share in receipts stood at 2.14% in 2023. This data underscores a clear message: tourism is not only recovering—it is poised to emerge as a cornerstone of India’s economic growth, regional development, and employment generation in the coming decade.