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Like many other sectors that faced the Covid pandemic, the tourism sector was also hugely impacted. Travel and tourism saw a long pause due to the global health emergency. But now the surging vaccination rates and proper preventive measures taken by the government have given the sector a new impetus. The industry is expected to incur a growth of CAGR 16% that will account to $512 billion by the end of 2029.

The Indian travel and tourism sector accounts for nearly $121.9 billion. The Indian ecotourism industry which stood at $2.2 billion in 2019 is expected to grow to $11.6 billion by 2028. As per experts, this is possible only if the market grows at a rate of 20 CAGR. The sector of adventure tourism is also expected to touch $2 billion by 2028.

 It is quite uncertain to predict the exact scenario of the tourism industry in the post-Covid era but according to research and studies, the Indian population is looking to travel for leisure again. At the same time, the issue of economic slowdown caused by long lockdown periods and joblessness prevails. This has led to a shift of focus from luxury to budget-friendly local travels. In 2022, most of the domestic locations of India have reopened. This type of tourism includes workaways, drive-aways, and staycations with a short time span. Another popular trend that has gained popularity is the ‘work from mountains’ – banking on the traditional affinity for hill tourism and combining it with work from home options.

This year’s budget saw higher allocation for the tourism and hospitality sectors. The sector has received `2400 crore which is approximately 18.42% higher than the allocation for 2021-22. A major portion of this amount - `1644 crore is to be invested in developing and upgrading the existing tourism infrastructure and the rest is earmarked for promotional activities. The government is focusing on promoting the cultural heritage of the country. To do so, it has allocated `1181.30 crore for the Swadesh Darshan Scheme.

The current state of tourism is not at all a satisfactory one. According to the World Economic Forum’s Travel and Tourism Index, the Indian tourism industry is still at a risk due to the after effects of the pandemic. India is at the 54th position in the list with a score of 4.2. Though India is the highest scorer amongst all South Asian countries, this position is eight ranks lower than India's position in 2019. Other countries like Japan, Spain, US, France and Germany are at the top 10 and this list is clear proof that India’s tourism is far from returning back to its normal pace. The high-income European countries are successful in booking the top 10 positions because a strong economic base is the major factor in rebuilding any industry running at a loss. The countries that are lacking behind in the index need to invest more in providing the tourists a safe and promising environment - free from the fear of viruses. This too requires large allocations and India’s biggest drawback lies there.