India Incredibly Unaffordable

The total contribution of travel & tourism to India’s GDP in 2011 was INR 5.6 billion or 6% of GDP. This is due to rise by 7% in 2012 and over the next ten years, it’s contribution to India’s GDP will grow by 8% per annum, which is slightly higher than the rate of growth expected for the Indian economy as a whole.

Our industry has been trying to convince the Government that as a country, India needs to remain competitive in the global tourism market. We cannot have such steep taxes clamped down, making India Incredibly Unaffordable - and that without international standards of services offered by other tourism rich countries.

Even the WTTC Global President & CEO, David Scowsill, who was recently visiting India for a convention, called on the Indian Government and advised them not to view the aviation and hospitality sectors as a revenue source but as revenue generators. Rampant taxes and this attitude are the two biggest issues that will hold back the growth of the country’s economy through travel & tourism. It is vital for the government to reduce the tax burden on the industry.

As a whole, there is an increasing curiosity in the world to see today’s India; Be it for the vibrant festivals, our wildlife, yoga and meditation, or the diversity of our land and our people, also buoyed by Hollywood last year with Slumdog Millionaire and this year with Life of Pi. The government is working towards improving visa facilities by increasing the number of countries eligible for visa-on-arrival. They now need to understand the importance of tourism as a money churner and an employment generator.

In 2011, travel & tourism supported 39 million direct, indirect and induced jobs, which is 5% of the total employment in India. This is set to rise by 3% in 2012 to reach 40.5 million jobs. Over the next ten years, travel & tourism jobs in India will increase by 2% per annum to total 48 million jobs in 2022, in other words, 8% of total employment in the country.