Tag Archives: GDP

Portugal Achieves Tourism Milestone with Record 1.1mn arrivals in Nov; US visitors lead surge

In a remarkable achievement, Portugal marked a historic high in November with a record-breaking influx of foreign tourists, reaching 1.1 million visitors, as reported by the National Statistics Institute (INE) on Monday.

foreignLeading the surge were almost 140,000 visitors from the United States, solidifying their position as the largest group of foreign tourists for the month. The INE’s monthly report revealed that Spaniards and Britons secured the second and third spots with 131,000 and 124,000 travellers, respectively.

The rise in U.S. tourist numbers reflects a notable trend, driven by the appeal of Portugal as an affordable, sunny, and secure destination. Over recent years, the country has become an increasingly popular choice for American travelers seeking diverse experiences.

Tourism stands as a key driver of Portugal’s economy, contributing nearly 15% to the gross domestic product (GDP) before the disruptions caused by the global pandemic.

For the first 11 months of 2023, foreign tourist arrivals witnessed a substantial 20% increase compared to the previous year, totaling 17.4 million visitors. This figure has already surpassed the previous annual record of 16.4 million in 2019, highlighting the industry’s resilience in the face of challenges posed by the COVID-19 pandemic.

In a separate report, the INE disclosed that passenger numbers at Portuguese airports in November saw an 8.5% rise compared to the previous year and a significant 12% surge compared to November 2019. These statistics underscore Portugal’s robust recovery in the travel sector, affirming its status as a sought-after destination for global travelers.

 

 

 

Uncertain global climate impacting tourist flow to Goa, says Tourism Minister

The Russia-Ukraine war and the ongoing conflict in West Asia involving Israel have shrunk the regular inflow of tourists to Goa from these countries, state Tourism Minister Rohan Khaunte has said.

He was speaking to reporters here on Wednesday on the sidelines of the launch of Goa’s new initiatives for boosting tourism in the coastal state. Russia, Ukraine and Israel are the three counties from where Goa gets a sizeable number of tourists, he said.

“The crisis in which these counties are involved has shrunk the regular inflow of tourists to Goa,” the minister said. Elaborating on how Goa is trying to overcome the vacuum created by this, he said, “If you go by the absolute number of tourists that visited Goa in the last one year, it is higher compared to the previous year. It indicates that domestic tourists are filling the vacuum.”

However, it cannot be ignored that international tourists on an average stay in Goa for eight days, while the average stay of domestic tourists is four days, he said. With the Goa government promoting some of its unique tourism destinations, the state is expecting a steady growth in the tourist influx, he said. “At present, tourism contributes to 16 per cent of the state’s GDP. We want it to grow to 20 to 24 per cent in the next three years,” Khaunte said.

Source: PTI

ATOAI Convention 2023 to bring the Spotlight on Gujarat as an Adventure Destination

Ajeet Bajaj, President, ATOAI

The Adventure Tour Operators Association of India (ATOAI) is set to commence its three-day Convention today at Statue of Unity in Gujarat. The event will provide a platform to discuss a roadmap for development of adventure tourism in the state, and bring Gujarat in the limelight for its adventure tourism offerings.

Nearly 200 delegates are expected to take part in the ‘Annual Adventure Tourism Convention 2023’, which is being organised in run-up to the Vibrant Gujarat Global Summit to be held in Gandhinagar from January 10 to 12.

The pre-Vibrant Gujarat event for promotion of adventure sport is being organised jointly by the ATOAI and the Tourism Corporation of Gujarat Limited, ATOAI President Ajeet Bajaj told mediapersons in Gandhinagar.

In light of the industry’s rapid growth, the convention will provide a platform to discuss new trends, devise a toolkit to implement regulatory system and roadmap for development of adventure tourism in Gujarat, he said. “The convention aims to propel India into the top 10 adventure travel destinations globally by promoting sustainable, responsible, and safe adventure tourism practices,” Bajaj added.

Since the conference has been declared as ‘Carbon-Negative’, the convention’s carbon footprint will be calculated and offset through a tree-planting initiative during the conclave, sending a powerful message of sustainability to stakeholders, he said, adding it will be a single-use plastic-free event.

Speakers who are expected to share their thoughts at the event include Chief Minister Bhupendra Patel, Arunachal Pradesh CM Pema Khandu, Union Tourism Secretary V Vidyavathi and State Tourism Secretary Hareet Shukla, among others.

The convention in Gujarat holds immense potential for the state’s development, particularly in the realm of adventure tourism, said an official statement. Beyond the immediate economic injection that such events bring, Gujarat stands to benefit significantly from the subsequent growth of adventure tourism in the state, it added.

Shukla said that nearly 200 participants, including adventure tour operators and field experts, will converge for the event. “Adventure tourism contributes significantly to the global GDP and is recognized as the largest niche market. In collaboration with ATOAI, we will explore adventure tourism in Gujarat and we aim to facilitate year-round tourism activities in Gujarat. Our objective is to establish the state as a premier adventure tourist destination in the next 2 to 3 years” he told mediapersons.

The senior bureaucrat said India has potential to be a global leader in adventure tourism. “India, with its diverse landscape, has immense potential to be a global leader in adventure tourism as the travel and tourism sector contributed more than 7 per cent to the global GDP in 2022. Further, the sector is expected to grow at a rate of 6-7 per cent annually, reaching USD 25-30 trillion by 2047.”

Bajaj said his association wants India to be among the top 10 best destinations for adventure tourism in the next 10 years. “Before the pandemic, a global survey on global adventure tourism estimated the market size for adventure tourism at USD 683 billion and projections showed that by 2024 it will become a trillion dollar industry globally,” he added.

 

Bengal Cabinet extends industry status to hospitality sector

In a proactive move to invigorate the tourism sector and tackle employment challenges leading up to the 2024 Lok Sabha elections, the Bengal Cabinet has given green signal to a proposal to bestow industry status upon the hospitality sector. This decision, stemming from a proposal put forth by the State’s Tourism Department, holds the promise of fostering economic resurgence and reinvigorating the state’s tourism landscape.

Here are the key highlights of this significant development:
1. Substantial Savings on Electricity Bills: Hotels will benefit from a transition to industrial power tariff rates, a move set to result in considerable savings on electricity bills. Estimates suggest that these savings could amount to up to Rs 3 per unit, a substantial relief for hotels, where electricity costs stand as the second most significant expense after employee salaries.
2. Reduced Electricity Duty: Upon gaining industry status, the hospitality sector will enjoy a reduced electricity duty, though the exact magnitude of these savings remains to be precisely calculated. Nonetheless, the fiscal relief is expected to be significant.
3. Cost Reduction in Water Supply: Currently, hotels pay commercial rates for water supply. However, this will change once the hospitality sector is granted industry status, allowing them to pay the lower industrial rates for water supply.
4. Lesser License Fees and Taxes: The hospitality sector will see a reduction in license fees and other taxes, including property taxes, further easing the financial burden on hotel operators.
5. Improved Floor-Area Ratio (FAR): Industry status will bring an improved FAR, which relates to the proportion of land on which buildings can be constructed compared to the usable floor area. This means that hotels and tourism-related infrastructure can undertake more construction on a given piece of land. This development is anticipated to attract more investors to establish hotels and associated tourism facilities.

Sudesh Poddar, President of the Hotel and Restaurant Association of India’s Eastern Chapter, welcomed the decision, noting a longstanding demand for industry status for the hospitality sector. He highlighted the potential to encourage investors to contribute to the state’s tourism sector and expand its existing infrastructure.

Given the persistent issue of job scarcity, especially concerning the upcoming Lok Sabha elections, sources within Nabanna disclosed that the government is exploring all available avenues to create employment opportunities. Fresh investments in the hospitality sector are seen as a catalyst for generating significant job prospects, considering the state’s enormous tourism potential.

The tourism industry currently contributes approximately 13 percent to Bengal’s GDP, exceeding the national average of 7.5 percent. Notably, in 2022, over 1.04 million international tourists visited Bengal, while the state hosted 84.54 million domestic tourists.

The decision to grant industry status to the hospitality sector is expected to invigorate the tourism industry, employing more than 15 lakh people in the state. Moreover, it is poised to encourage major hotel chains to expand their accommodations, further enhancing Bengal’s tourism offerings. Samrat Sanyal, General Secretary of the Himalayan Hospitality & Tourism Development Network, an apex body representing tourism stakeholders, lauded the decision’s potential to boost the tourism sector.

 

Airbnb contributes USD 920mn to India’s GDP in 2022 with Goa ranking as top destination

Airbnb, an online marketplace based in the United States specialising in short- and long-term homestays and experiences, made a substantial contribution to India’s Gross Domestic Product (GDP) in 2022, amounting to over USD 920 million. Additionally, it played a pivotal role in creating more than 85,000 jobs in the country during the same year, according to a report by Oxford Economics, a global economic forecasting and econometric analysis firm.

Remarkably, Airbnb’s impact on both revenue and job creation more than doubled since 2019, despite the challenges posed by the COVID-19 pandemic and international travel restrictions.

The study also revealed that in 2022, Airbnb guests in India spent a total of USD 815 million on various services, including transportation, restaurants, and retail stores.

Among Indian destinations, Goa saw the highest presence of Airbnb, with its guests contributing USD 190 million to the local economy. Following Goa were cities like Bengaluru, Delhi, Mumbai, and Manali.

James Lambert, Director for Economic Consulting in Asia at Oxford Economics, emphasised Airbnb’s significant role in revitalising the Indian travel and tourism sector following the COVID-19 pandemic.

 

 

 

Hotel industry to contribute $1.5 tn to GDP by 2047

The Indian hotel market has significant growth opportunities and is poised to contribute $1,504 billion to the country’s overall gross domestic product (GDP) by 2047, from $65 billion in 2022, suggests a report by the Hotel Association of India (HAI). It forecasts that the demand for hotels will increase over the next 25 years. However, supply will grow in the same ratio if there remains a continuous development plan for the pipeline and new projects.

The association anticipated the growth to be at 11%, 13% and 15% in the short, mid and long term for the overall hospitality industry. The total contribution includes aspects of services from corresponding industry verticals such as food and beverages, salon and spas, etc. This excludes consideration of services market growth and therefore it also excludes scenario-based contribution estimates.

The direct contribution of the hotel industry to GDP was $40 billion in 2022 and is expected to reach $68 billion by 2027, and $1 trillion by 2047.

The report highlighted that to reach the $3 trillion economic target by 2047, the tourism and hospitality sector will need policy support, including but not limited to the ease of doing business and infrastructure status. There is an urgent need for a robust tourism policy structure, a rise in national and international tourist footfalls and 100% foreign direct investment, it said.

Policy and the ease of doing business will play a key role in the way that tourism shapes up, said Madan Prasad Bezbaruah, HAI’s secretary general and a former secretary in the ministry of tourism.

Bezbaruah said within the tourism and hospitality sector, 30 key segments had been identified by the government which are important for the sector to function properly to reach its desired size.

“Different states have different policies when it comes to tourism. While some have given the sector an industry status, others have not. We do not understand why because it doesn’t cost states money to do this,” he said. The report added that granting infrastructure status to hotels will facilitate long-term loans at competitive interest rates, thereby boosting the industry’s growth. (Source: The Mint)