Tourism Sector

The future of Indian Tourism Industry will become clear with the fact that it becomes one of the key drivers in the growth of our country. Along with the important source of foreign exchange for our country, it also generates a large number of employment. With 11.7% Compound Annual Growth Rate (CAGR) over the period of the previous four years, it is the fastest growing sub segment come under the service sector, contributes 12.5% of the Gross Domestic Product (GDP) in 2014-2015. We have a rich historical and cultural heritage, so much variety in our ecology gives a potential power to our tourism industry. During Jan- Nov 2015, there is a growth of 4.5% in arrivals of foreign tourists reaching at 7.103 million.

The government is expecting near about 13.45 million jobs from this sector and to reach its expectations, it puts all its efforts to develop India as a global tourism hub. Various measures taken by the government of India like development of its heritage sites, plan to cover 150 countries by the year end for e-visa facilities, and various other projects for up gradation of its tourist destinations will lead it towards developing. Moreover, ITC is also planning to expand the chain of its hotels in Mahabalipuram, Kolkata, Ahmedabad, Hyderabad and Colombo - by 2018 with an investment of Rs.9000 crores

The huge business scope is attracting foreign investors also to enter into the Indian tourism sector. It comes among the top 15 sectors in India who attract highest FDI. During April 2000-September 2015, the hotel and tourism sector attracted around US$ 8.48 billion of FDI.

Rise in the use of internet and smart phone users, the online booking of tickets and hotels boosted up. Various online tour package providers are there to attract more and more visitors by making their visit more comfortable. There are various online service providers who customize the package as per their customer’s pocket and also they serve various discounts and offers on ticket booking, hotel booking etc. Discounts make your way easier to enter into the market but to sustain you will need some better options.(data source:ibef)