India T&T sector to post annual growth rate of over 10% during 2019-28: IBEF
The travel and tourism industry’s direct contribution to India’s Gross Domestic Product (GDP) is expected to post an annual growth rate of 10.35 per cent between 2019 and 2028, according to a report by the Indian Brand Equity Foundation (IBEF), an Indian government trust, reports Shivangi Gupta for Moneycontrol.
In 2020, the travel and tourism industry’s contribution to GDP was USD 121.9 billion; the figure is expected to reach USD 512 billion by 2028, said the report, which comes at a time the sector is bouncing back from a pandemic-induced downturn.
The pandemic dented travel and tourism globally, causing the industry a loss of almost USD 4.5 trillion. Domestic visitor spending decreased by 45 per cent, while international visitor spending declined by 69.4 per cent compared to 2019, according to an estimate by the World Travel & Tourism Council.
Vinutaa S, Assistant VP, ICRA Limited, said, “The hotel industry has witnessed a healthy recovery in demand over the last 2-3 months. Leisure travel, transient demand, MICE/weddings and gradual pick-up in business/diplomat travel have been the primary demand drivers. Although FTAs have been reasonably healthy in April and May 2022, FTA recovery to pre-COVID levels could be a few months away and domestic tourism will be the prime demand driver.”
“ICRA estimates pan-India premium hotel occupancy to be ~54-56 percent in 2M FY2023. Pan-India premium hotel ARRs stood at ~Rs. 4,500 – 4,600 in 2M FY2023 and were only at a 10-15 percent discount to pre-Covid levels. Leisure destinations and some high-end hotels reported occupancy and ARRs higher than pre-Covid levels, with the surge in demand. ICRA currently expects the industry revenues and margins are expected to reach pre-Covid levels by FY2023,” Vinutaa added.
ICRA expects international air passenger traffic at Indian airports to rise 80-85 percent this fiscal year. By May, traffic had already increased by 72 percent over pre-COVID levels, according to a PTI report.
From January to March 2022, domestic airlines carried 248.00 lakh passengers, an increase of 6.06 percent year on year.