India's tourism sector needs an urgent image makeover with higher investment in infrastructure, through PPP mode to capitalise on opportunities provided overall growth in world tourist arrivals, the Economic Survey said today.

Global tourist arrivals are expected to increase by 43 million every year on an average from 2010 to 2030. The Survey for 2012-13 tabled in Parliament said there is also a need to address issues like high luxury taxes on hotels by states and ensure greater cleanliness and safety for tourists, which can help in giving a big boost to this sector.

"With world tourist arrivals expected to increase by 43 million every year on an average from 2010 to 2030 and FTAs in emerging countries expected to grow faster than in advanced economies, a goldmine of opportunity in tourism is waiting for India, which at present has a paltry share of 0.64% in world tourist arrivals," the survey said.

Telecom, tourism and railways have been the best performers in services sector in India, the 2012-13 Economic Survey tabled in parliament Wednesday said.

The survey tabled a day before the general budget also pointed out that the tourism sector had also recorded growth in the number of foreign tourists visiting India. The foreign tourists numbers increased to 6.65 million as of Dec 31, 2012. The tourists arrival numbers was 6.31 million in 2011-12 and 5.8 million in 2008-09. The foreign exchange earnings from foreign tourist arrival grew to $17.73 billion. The earnings were $16.56 billion in 2011-12.

It, however, said "an image change for Indian tourism is needed with higher investment in tourism infrastructure including through PPP mode."

Calling for more private participation in the sector, the report said: "Even user charges could be levied if monuments or tourist sites are developed by the private sector or through PPP (public private partnership)."

On taxation issues, the survey said refunding VAT as done in countries like Thailand and Singapore can be replicated to help the tourism sector.

Domestic tourism is also an important contributor to the growth of this sector with a 14.34% CAGR of domestic tourist visits from 1991 to 2011. During 2011, there were 851 million domestic tourists, the Survey noted.     

The hotels and restaurants sector with a 1.5% share in India's GDP in 2011-12 is an important sub-component of the tourism sector.

(You need to login first to read complete news).
New User? Register for FREE!
» Back to Travel News