According to the World Travel & Tourism Council’s (WTTC) 2023 Economic Impact Research (EIR), India’s Travel & Tourism sector is experiencing a strong recovery and is very close to reaching its pre-pandemic peak in the current year.
During her speech at the G20 Summit in India, Julia Simpson, the President & CEO of WTTC, applauded the resilience of the sector, noting that it is growing at twice the rate of GDP not only in India but also across all G20 nations, VisaGuide.World reports.
Based on WTTC’s research, it is projected that the Travel & Tourism sector will contribute INR 16.5 trillion to the Indian economy this year, which is just 3.5 percent below the contribution made in 2019 before the pandemic.
India’s Travel & Tourism Sector Forecasts 1.6 Million Employment Opportunities This Year
The same source also noted that India’s Travel & Tourism sector is expected to generate over 1.6 million additional jobs in the current year. This recovery in job creation will help the industry regain almost all jobs lost due to the COVID-19 pandemic, bringing the total number of jobs in the sector to nearly 39 million.
As a result, approximately one in every 13 workers in India will be employed in the Travel & Tourism sector.
Regarding visitor spending, the research forecasts that international visitor spend in India will exceed INR two trillion. Additionally, domestic visitor spend is projected to surpass INR 12.6 trillion.
“The G20 Presidency allows India to highlight the economic and social value of Travel & Tourism at a critical moment for the global economy,” Julia Simpson pointed out in this regard.
Simpson further emphasized Minister Reddy’s exceptional leadership in uniting G20 Ministers under the Goa Roadmap, which serves as a compelling demonstration of how Travel & Tourism not only drive economic growth but also aligns with the UN Sustainable Development Goals, showcasing its global significance.
In the previous year, India’s Travel & Tourism sector experienced significant growth, with its GDP contribution expanding by nearly 90 percent to surpass INR 15.6 trillion. This accounted for 5.9 percent of the country’s overall economy, inching closer to the pre-pandemic high of seven percent in 2019.
Moreover, the sector played a crucial role in job creation, adding 14.6 million new jobs last year. This brought the total number of jobs in the sector to 37.2 million nationally, indicating that about one in every 13 jobs in India is within the Travel & Tourism industry.
International Visitor Spending in India Soars by 125% in 2022
As for visitor spending, international visitor spending in India witnessed a remarkable increase of 125 percent in 2022, exceeding INR 1.6 trillion. At the same time, domestic visitor spending grew by 86 percent, reaching over INR 12.3 trillion. Domestic visitor spending is now just one percent behind the levels observed before the pandemic, showcasing a strong recovery in the domestic tourism market.
According to forecasts from the global tourism body, India’s Travel & Tourism sector is projected to significantly expand its GDP contribution to INR 36.8 trillion by 2033. This would represent approximately seven percent of the Indian economy.
Furthermore, the sector is expected to generate employment opportunities for over 58.2 million people nationwide, indicating that approximately one in every ten individuals would be employed in the Travel & Tourism sector.
In 2022, the Travel & Tourism sector in the Asia-Pacific region made a substantial contribution of USD $1.6 trillion to the regional economy. However, this figure remained 50 percent lower than the peak observed in 2019, indicating the impact of the pandemic on the sector’s performance.
WTTC predicts that the region’s GDP contribution from the Travel & Tourism sector will reach over USD $2.6 trillion in 2023, which is only 16 percent below the high point recorded in 2019.
In terms of employment, the Travel & Tourism sector employed over 155 million people across the Asia-Pacific region in 2022. While this marked an increase of 8.7 million jobs compared to the previous year, it remained 15 percent lower than pre-pandemic levels.