The Indian Travel Market Is Expected To Be Worth More Than $450 Bn By 2020
“With the evolution of tech-enabled startups and newer concepts like staycation, adventure tourism, ecotourism, medical tourism and pilgrimage tourism across the country the industry is at the cusp of potential growth.”
Deep Kalra, Chairman, and Group CEO, MakeMyTrip, and Vice-Chairman of IAMAI stated this during the recently organised Incredible India 2.0, an event geared towards promoting the inbound, outbound and domestic tourism in India. With tourism startups boosting the Indian travel market with the acceptance of latest technologies, it is believed that the Indian travel market is expected to generate $48 Bn by 2020.
He further added that now more and more people are coming online, and smartphone penetration is increasing. Also, technological disruptions and use of digital payments has actually changed the dynamics of the industry at large. At present this industry is standing at 2.0 knocking 3.0 for the next level to kick off.”
One of the several discussions at the event further concluded that technology and digital penetration can help in achieving the growth target of the industry. They also noted that online hotel booking has seen a substantial y-o-y growth of 60%. Following this, the conference also suggested that issues pertaining to GST, opening up of the shared economy and facilitating the adoption of new tech could herald the next trillion opportunities for the sector.
Quoting data, IAMAI claimed that the tourism sector in India generated $20 Bn (INR 14.02 lakh Cr) or 9.6% of the GDP in 2016 and supported 40.343 Mn jobs or 9.3% of its total employment.
The sector is projected to grow at an annual rate of 6.8% to $450 Bn ( INR 28.49 lakh Cr) by 2027 (10% of GDP). The tourism ministry aims to double foreign tourist arrivals to over 20 Mn and double foreign exchange receipts to $52 Bn by 2020.
The Incredible India 2.0 campaign was launched in September 2017 by President Ram Nath Kovind on World Tourism Day. The campaign aimed to focus on specific promotional plans, with greater emphasis to be given to social media.
As the travel industry continues to be a major contributor to the Indian economy, the target of $48 Bn by 2020 set by Incredible India 2.0 doesn’t seem too farfetched.
