The tourism sector in India has grown significantly since the 1980s due to various government policies and initiatives. While tourism accounts for 9.6% of India's GDP and is the third largest foreign exchange earner, issues around infrastructure, amenities, taxation, and security still remain. The government has undertaken several measures like infrastructure development projects, promotion campaigns, and visa reforms to address challenges. However, further investments are needed to enhance perceptions of safety, develop rural infrastructure, and improve tourism workforce training to realize the sector's full potential.

1. INDIAN TOURISM SECTOR
“Impact of current government policies”
PRESENTED BY:
AMIT SINHA(17PGPM03)
BIKASH CHAUDHARY(17PGPM10)
MD. HAARIS KHAN(17PGPM12)
PIYUSH BISWAS(17PGPM15)

2. EVOLUTION OF TOURISM SECTOR
• The National Tourism
Policy was announced in
1982
• The Govt. formulated
plan in 1988 to promote
tourism
• Various states in India
declared tourism as an
Industry
• Govt. stressed on PPP in
this sector
• Govt. policies give a start
to hotel industry
• National policy on
tourism was announced
in 2002, focusing on
developing a robust infra
• Online travel portals& low
cost carrier airlines gave
a boost to domestic
tourism
• Govt. has undertaken
various marketing
initiatives
• 2015-National Medical &
Wellness Tourism
Promotion Board was
formed
• 2014- e-visa was
launched
• Sector accounted 9.3% of
employment opportunities
Pre-1990’s 1990-2000 2000-2005 2005 Onwards

3. KEY HIGHLIGHTS
• Accounts to 9.6% of the GDP & the 3rd largest foreign exchange earner
• FY2016 - Contribution to GDP was US$ 71.7 billion and expected to rise
by 6.9 per cent to US$76.6 billion in 2017.
• Direct contribution to GDP is expected to reach US$ 148.2 billion by
2027.
• FY2017-foreign tourist arrival in India stood at 10.177 million
• India is expected to attract 17.3 million international tourist arrivals by
2027
• FY2017- Earned foreign exchange of US$ 27.693 billion from tourism
witnessed a growth of 19.6%

5. TOURISM SECTOR
Rural
Tourism
Adventure
Tourism
Medical
Tourism
Heritage
Tourism
Luxury
Tourism
Eco-
Tourism
Pilgrimage
Tourism
Wide range of adventure sports
are covered under this category
Tourists seek specialized
medical treatments, mainly
Ayurveda, spa & other therapies
Tourists visit India for its
cultural heritage in various cities
Luxury travel market registered a growth
rate of 12.8% in 2016, the highest in
comparison with any other BRIC country
Vast Variety of flora & fauna is a
major factor behind their growing
popularity
India being religious hub for
different cultures attracts a large
number of tourists
Develop interest in heritage and culture &
promote visits to village settings to experience

6. GROWTH DRIVERS
 INFRASTRUCTURE: More than half of the MoT’s Plan budget is
channelized for funding the development of destinations, circuits, mega
projects as well as rural tourism infrastructure projects
 RISING FDI:
 Hotel & Tourism sector has received cumulative FDI inflows of US$ 10.6
billion from 2000 to2017
 International hotel brands like Carlson group, Berggruen, Marriott and
Hilton is aiming to increase the number of its hotels in India to 170 by
2020
 POLICY SUPPORT:
 100% FDI allowed in tourism construction projects, including the
development of hotels, resorts & recreational facilities
 Campaigns like Incredible India & Athithi Devo Bhava were launched

7. GROWTH DRIVERS (Cont’d)
 GROWING DEMAND: Domestic expenditure on tourism is expected to rise
due to the growing income of households. A number of niche offerings such
as medical tourism & eco tourism are expected to create more demand

8. CURRENT TRENDS
 Online travel operators:
 Over 70% of air tickets are now being booked online
 Online travel & tour operators, which provide better prices & options to
consumers, have emerged in India
 Wellness tourism: Widespread practice of Ayurveda, yoga, siddha,
naturopathy and nation’s spiritual philosophy makes India a famous wellness
destination
 Cruises: GOI has estimated that India would emerge with a market size of
1.2 million cruise visitors by 2030-31. The government is planning to set up
five cruise terminals in the country

9. CURRENT TRENDS (Cont’d)
 Adventure:
 Most popular segment owing to India’s enormous geo-physical diversity
 Almost every state has definite programme to identify & promote
Adventure tourism
 Camping Sites:
 Promotion of camping sites has been encouraged with adequate
acknowledgement of its adverse effects on environment
 Besides providing unique rewarding experiences, responsible conduct of
camping can be major source for both additional economic opportunities
 Spiritual tourism: Recognized as a destination for spiritual tourism for
domestic & internal tourists

10. CURRENT GOVERNMENT POLICIES
 Promote tourism through agreements and MoUs with other countries and
international organizations; India currently has 48 such agreements in place
 Feb 2016, GOI launched ‘Swachh Paryatan’ mobile application, which allows
citizens to lodge complaints
 Collaboration with state/UT administration for deploying tourist police at
prominent tourist spots
 2016- Government announced the National Civil Aviation Policy (NCAP)
 Budget allocation for the MoT has been raised to INR1,840.8 crore
 The MoT is focusing on driving tourism through branding and promotional
campaigns, such as ‘Incredible India’ and ‘Atithi Devo Bhava

11. CURRENT GOVERNMENT POLICIES
 Railways to launch dedicated trains for pilgrimage and general tourism
 Union Budget estimate for the ‘Swadesh Darshan’ scheme for FY18 is
INR960 crore — INR12 crore less than the revised estimate for the previous
financial year
 Withdrawn the service charge levied on e-tickets booked through the online
platform of the IRCTC
 Allowed 100 per cent FDI under the automatic route in the tourism and
hospitality sector
 Encouraging local involvement in tourism by promoting homestays
 The ‘Tourist Visa on Arrival (TVOA) scheme’ was extended to 161 countries

13. ISSUES AND CHALLENGES
 Lack of Infrastructure: Tourism-associated economic and social
infrastructure hygiene, health facilities, etc. are largely under developed in
India
 Access and connectivity: Infrastructure facilities like air, rail, road
connectivity, and hospitality services are still needs to be improved
 Marketing and promotion: Needs to change its traditional marketing
approach to a more competitive and modern approach.

14. ISSUES AND CHALLENGES
 Taxation: Tourism in India is a high-taxed industry, which makes India
expensive as a tourist destination
 Security: Security has been a major problem for our growth in tourism for a
number of years
 Regulatory issues: Number of countries competing with India for tourists
provide visa on arrival, should provide visa on arrival for more countries or
for certain categories of tourists for a specific duration
 Amenities: Amenities available at various tourist locations and en route
need to be improved

15. EVALUATION OF POLICIES
 Lack of Infrastructure
 6 crore toilets have been built and an additional 2 crore will be built in
the next year under the Saubhagya yojana.
 “HRIDAY” scheme with a focus of holistic development of heritage sites
 Amenities
 “PRASAD” mission was implemented by the Ministry for enhancing the
facilities provided & infrastructure at pilgrimage centre’s of all cities.
 10 prominent tourist sites will be developed into “Iconic Tourist
Destinations” in order to boost tourism in these regions
 tourist amenities will be upgraded at 100 Adarsh monuments of the
Archaeological Survey of India (ASI)

16. EVALUATION OF POLICIES (Cont’d)
 Taxation
 This issue is not effectively addressed
 Indirect tax levied on the tourism and hospitality sector’s offerings
in India is considerably higher at 18–25 per cent than that levied by
some of the major tourist destinations globally, where it is below10
per cent
 Security
 The Ministry in consultation with state/UT administrations has
proposed to employ tourist police at prominent tourist spots

17. EVALUATION OF POLICIES (Cont’d)
 Access and connectivity
 UDAN Scheme: catalyst in bringing changes to air travel sector
 Plans to make 56 unserved airports and 31 helipads all over the nation.
 UDAN scheme has received a big allocation, Rs 1,014.09 crore, for the
fiscal year of 2018-19, from Rs 200.11 crore in the 2017-18 FY.
 The allocation for Ministry of Road Transport and Highways has been
increased from Rs 64,900 crore (in 2016-17) to Rs 71,000 crore for
2018-19.
 Recent cases of train derailments have led the government into
investing in safety for the Railways. Finance minister has allocated Rs
1.48 Lakh crore for Railways, with the focus being primarily on 'Safety
First‘.

18. EVALUATION OF POLICIES (Cont’d)
 Marketing and Promotion
 Launch of several branding & marketing initiatives by the Government of
India such as Incredible India! & Athiti Devo Bhava provides a focused
impetus to growth.
 Incredible India 2.0 campaign and ‘Adopt a Heritage’ were launched in
September 2017
 Regulatory issues
 Indian government has also released a fresh category of visa – the
medical visa or M visa, to encourage medical tourism in India. Indian
medical tourism is expected to reach USD8 billion by 2020

19. POLICY RECOMMENDATION
 Enhance the perception and reality of India as a safe destination by
designing and implementing enhanced security protocols
 Invest in the development of both physical and digital infrastructure in order
to confront the issue of last-mile connectivity. Hazardous road travel and a
lack of affordable hotels hamper international traveler’s experience, while
high taxes hinder the industry’s profitability
 Improve tourists' experiences by training skilled and unskilled workers in the
hospitality industry, through both public and private programmes
 Integrate the campaign “Incredible India” into a more holistic campaign that
includes not only print but also other channels such as digital, social,
placement, review sites, and global media

20. CONCLUSION
 Gained 12 points in the travel and tourism competitiveness report and is now
ranked 40 in 2017 from 52 in 2015
 International openness ranking has gained 14 points, India currently holds
55th rank, and this is due to strong implementation of both Visa on arrival
and E- Visa
 Health conditions, Human resource and security concerns are improving but
still are inadequate. Further improvements are required in these dimensions
 India has a developing Tourism and significant opportunities are there, but
its Tourism infrastructure needs to be developed fast, so that India does not
lose race in long run
 Development of infrastructure at major tourist spots in the country, and
control on unregulated tourism activities would be desired to enhance their
attractiveness and sustainability