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MACROECONOMIC FACTORS AFFECTING
TOURISM IN INDIA
TOURISM INDUSTRY IN INDIA
• Preferred destination for both overseas and domestic
travellers.
• Generated 9.2% of India’s GDP.
• Outperformed the global tourism industry.
• Incredible India.
Effects of Inflation On tourism
• INCREASING PRICES OF
TRANSPORT.(AIR/ROAD/RAIL/WATER)
• INCREASING PRICES OF HOTEL TARRIFS.
• INCREASING PRICES OF GENERAL COMMODITIES.
• STRENGTH OF THE DESTINATION’S CURRENCY
COMPARED TO THE TOURIST’S HOME CURRENCY.
• HOWEVER THE RATE AT WHICH IT AFFECTS TOURISM
WOULD DIFFER FROM COUNTRY TO COUNTRY.
GOVERNMENT POLICIES
• INFRASTRUCTURE DEVELOPMENT
• TAXATION
• TECHNOLOGICAL DEVELOPMENT
EFFECTS OF INTEREST
RATE ON GDP
DECREASE IN
INTEREST RATE
INCREASE IN
INVESTMENT
ENCOURAGE
PEOPLE TO BUY
MORE ON CREDIT
INCREASE IN
CONSUMPTION
INCREASE IN
ECONOMIC
ACTIVITY
INCREASE IN GDP
INDUSTRY SCENARIO
• India has moved 13 positions ahead from 65th to 52nd rank in Tourism and Travel
Competitive Index (WEF)
• Travel and Tourism being the largest service industry in India was worth $234 bn in 2018.
The industry has become the third-largest Foreign Exchange Earner in India with a 17.9%
growth in Foreign Exchange Earnings (in rupee terms) in March 2018 over March 2017.
• According to The World Travel and Tourism Council (WTTC), tourism generated $240 bn
or 9.2% of India’s GDP in 2018 and supported 42.67 mn jobs which is 8.1% of its total
employment.
• The sector is predicted to grow at an annual rate of 6.9% to $460 bn by 2028 which is
9.9% of GDP.
• 14.62 mn jobs created by tourism in last four years (between 2014-2018)
• Seventh largest tourism economy in the world
• Ninth largest in cultural resources and business travel in the world
SOURCE:https://www.investindia.gov.in/s
ector/tourism-hospitality
Effects of Current
Economic Slowdown
Macro Economic Factors affecting Tourism
Industry | Group 7
Source-
https://economictimes.indiatimes.c
om/industry/services/travel/tourism
-sector-unaffected-by-economic-
slowdown/articleshow/71416879.cm
s?from=mdr
Macro Economic Factors affecting Tourism
Industry | Group 7
Source-
https://economictimes.indiatimes.c
om/industry/services/travel/tourism
-sector-unaffected-by-economic-
slowdown/articleshow/71416879.cm
s?from=mdr
10.03
10.55
0
2
4
6
8
10
12
14
2017 2018
ForeignTouristArrival(Millions)
Year
5.2 % growth
Graph: Foreign Tourist Arrival
Macro Economic Factors affecting Tourism
Industry | Group 7
Source-
https://economictimes.indiatimes.c
om/industry/services/travel/tourism
-sector-unaffected-by-economic-
slowdown/articleshow/71416879.cm
s?from=mdr
10.03
10.55
0
2
4
6
8
10
12
14
2017 2018
ForeignTouristArrival(Millions)
Year
5.2 % growth
Graph: Foreign Tourist Arrival
THANKYOU

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Tourism industry in india

  • 2. TOURISM INDUSTRY IN INDIA • Preferred destination for both overseas and domestic travellers. • Generated 9.2% of India’s GDP. • Outperformed the global tourism industry. • Incredible India.
  • 3. Effects of Inflation On tourism • INCREASING PRICES OF TRANSPORT.(AIR/ROAD/RAIL/WATER) • INCREASING PRICES OF HOTEL TARRIFS. • INCREASING PRICES OF GENERAL COMMODITIES. • STRENGTH OF THE DESTINATION’S CURRENCY COMPARED TO THE TOURIST’S HOME CURRENCY. • HOWEVER THE RATE AT WHICH IT AFFECTS TOURISM WOULD DIFFER FROM COUNTRY TO COUNTRY.
  • 4. GOVERNMENT POLICIES • INFRASTRUCTURE DEVELOPMENT • TAXATION • TECHNOLOGICAL DEVELOPMENT
  • 6. DECREASE IN INTEREST RATE INCREASE IN INVESTMENT ENCOURAGE PEOPLE TO BUY MORE ON CREDIT INCREASE IN CONSUMPTION INCREASE IN ECONOMIC ACTIVITY INCREASE IN GDP
  • 7. INDUSTRY SCENARIO • India has moved 13 positions ahead from 65th to 52nd rank in Tourism and Travel Competitive Index (WEF) • Travel and Tourism being the largest service industry in India was worth $234 bn in 2018. The industry has become the third-largest Foreign Exchange Earner in India with a 17.9% growth in Foreign Exchange Earnings (in rupee terms) in March 2018 over March 2017. • According to The World Travel and Tourism Council (WTTC), tourism generated $240 bn or 9.2% of India’s GDP in 2018 and supported 42.67 mn jobs which is 8.1% of its total employment. • The sector is predicted to grow at an annual rate of 6.9% to $460 bn by 2028 which is 9.9% of GDP.
  • 8. • 14.62 mn jobs created by tourism in last four years (between 2014-2018) • Seventh largest tourism economy in the world • Ninth largest in cultural resources and business travel in the world SOURCE:https://www.investindia.gov.in/s ector/tourism-hospitality
  • 9. Effects of Current Economic Slowdown Macro Economic Factors affecting Tourism Industry | Group 7 Source- https://economictimes.indiatimes.c om/industry/services/travel/tourism -sector-unaffected-by-economic- slowdown/articleshow/71416879.cm s?from=mdr
  • 10. Macro Economic Factors affecting Tourism Industry | Group 7 Source- https://economictimes.indiatimes.c om/industry/services/travel/tourism -sector-unaffected-by-economic- slowdown/articleshow/71416879.cm s?from=mdr 10.03 10.55 0 2 4 6 8 10 12 14 2017 2018 ForeignTouristArrival(Millions) Year 5.2 % growth Graph: Foreign Tourist Arrival
  • 11. Macro Economic Factors affecting Tourism Industry | Group 7 Source- https://economictimes.indiatimes.c om/industry/services/travel/tourism -sector-unaffected-by-economic- slowdown/articleshow/71416879.cm s?from=mdr 10.03 10.55 0 2 4 6 8 10 12 14 2017 2018 ForeignTouristArrival(Millions) Year 5.2 % growth Graph: Foreign Tourist Arrival