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Friday, 06 September, 2019, 18 : 10 PM [IST]

Third Tourism Satellite Account for India shows moderation in the share of tourism to GDP

The third Tourism Satellite Account (TSA) compiled for 2015-16 by National Council of Applied Economic Research (NCAER) for Ministry of Tourism, Government of India has found a moderation in the share of tourism in GDP compared to the previous TSA conducted in 2009-10. As per the third TSAI released today, the share of the Tourism Direct Gross Domestic Product (TDGDP) to the total GDP for 2015-16 was estimated at 2.70%. The corresponding figure during second TSAI was 3.68%. Similarly, the share of the TDGVA (Tourism Direct Gross Value Added) was estimated at 2.78% of the total GVA (Gross Value Added) in 2015-16, compared to the corresponding figure of 3.80% during 2009-10.

However, the third TSAI has revealed strengthening of the multiplier effect of the tourism sector to the total economic activity due to rapid improvement in linkages of tourism with other sectors of the economy. The tourism GVS multiplier, obtained from the IO model worked out to be 1.9236 in the new Accounting compared to 1.8518 in 2009-10. With the improved multiplier, the direct and indirect contribution of tourism to GVA is estimated at 5.35% in 2015-16 and the contribution to the GDP at an estimated 5.20%.

Speaking about the importance of TSA Accounting for services sector like tourism at a workshop organised by NCAER in Delhi, Yogendra Tripathi, Secretary – Tourism, Government of India, said that there have always been certain perceptions about the veracity on the direct and indirect contribution of tourism to the economy and its capacity to generate employment, etc. Therefore, it is important to have TSA which is an accepted model of accounting by global agencies including UNWTO.  From the third edition of TSAI, accounting has gone to sub-national level which would help states to understand the opportunities thereby wiser deployment resources taking into account those opportunities.

Dr Shekhar Shah, Director General, NCAER in his introductory remarks said that the latest TSAI has looked at greater granularity, and therefore is more detailed compared to the previous two accounting initiatives. In a large country like India, he recommended more state and sub-state level accounting to understand the precise scenario to help deploy resources accordingly.

PC Cyriac, Additional Director General – Tourism, Government of India, said that only 60 countries out of the 156 countries listed in UNWTO follow the TSA process, and India is the only country in South East Asia which undertakes this exercise on a regular basis. Tourism is the only service sector in India which regularly undertakes the Satellite Accounting exercise, he added.

As per the third TSAI, the direct share of tourism to the total employment, defined by the number of jobs in the tourism characteristic industries, stood at 5.40% in 2015-16 compared to the 4.37% in 2009-10. The employment multiplier works out to be 2.2931 for 2015-16, somewhat less than the multiplier of 2.3256 in 2009-10.>
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