TBM Staff - Mumbai The Indian tourism sector experienced a remarkable resurgence in 2023, with Foreign Travel Arrivals (FTAs) soaring by 43% compared to the previous year, as highlighted in the Economic Survey 2023-24. The survey revealed that over 9.2 million foreign tourists visited India, marking a 43.5% year-on-year (Y-o-Y) increase.
India’s tourism industry also saw a significant rise in foreign exchange earnings, amounting to over ₹2.3 trillion, reflecting a 65.7% Y-o-Y growth. The country’s standing in the global tourism arena improved, with India ranking 39th in the World Economic Forum’s Travel and Tourism Development Index (TTDI) 2024.
To meet the increasing demand, the hospitality industry expanded substantially, adding 14,000 new rooms in 2023. This brought the total inventory of chain-affiliated rooms to 183,000 across the country. Additionally, the average daily rate for hotel rooms increased from ₹6,704 to ₹7,616, showing a 13.6% Y-o-Y growth in FY24.
Despite global inflationary pressures and delays in economic recovery, the survey noted only a minimal 0.7% decline in price competitiveness since 2021. However, it also pointed out the potential challenges posed by artificial intelligence (AI). According to a report by Capital Economics, AI could slow India’s services export growth by 0.3-0.4 percentage points annually over the next decade. This emphasizes the critical role of the tourism sector in job creation.
To further enhance employment in the tourism sector, the Ministry of Tourism launched the Incredible India Tourism Facilitator Certificate Programme. This initiative aims to create a skilled workforce of tourist facilitators through digital platforms offering online learning and certification courses.
The survey underscores the importance of public and private sector collaboration to fully realize the potential of India’s tourism industry.
