Incredible India Calling
India, for centuries, has been a hub of tourism, with potential that has largely been unexplored, both by desi and international travellers. Across its length and breadth, the country has something unique to offer, be it languages, cultures, traditions or heritage. Equally as potent is its 140 crore population, each with a different story to tell. And bringing it all together is the tourism industry, one of the biggest contributors to the GDP and employment.
According to World Travel and Tourism Council’s Economic Impact Report released in September 2022, travel and tourism sector’s contribution to India’s GDP was 5.8 per cent of the country’s GDP in 2021, growing 43.6 per cent over the 2020 figure and marking a strong recovery despite the nation having witnessed the devastating second wave of Covid19. The report also stated that between 2022 and 2032, the sector will generate 126 million additional jobs globally of which India will account for 20.4 per cent. Last year, the then NITI Aayog CEO and now the G20 Sherpa Amitabh Kant had said that tourism could drive job creation in India and therefore, ‘there is a need to focus the country’s energy on tourism and culture’.
All these factors point towards a positive period in country’s tourism industry where the hospitality sector is growing as well with new hotels and resorts coming up in huge numbers across categories, be it metros or Tier I, II and III cities. From luxury to economy, the year 2022 witnessed major hospitality chains bring a diverse pipeline to life in India, showcasing their bullish views of the hospitality space. While Radisson Hotel Group launched a new India-exclusive brand with Park Inn and Suites by Radisson to expand its reach, IHG debuted with its voco brand in India.
“India’s hospitality industry is well on its way to revolutionising how it operates and caters to the evolving demand of travellers. From upgrading marketing strategies to adopting the use of advanced technology and with increased expectations of modern-age travellers, hotels are leaving no stone unturned to provide personalised experience to guests. Today, consumer behaviour is trackable to an extent online and their services can be tailored even before their check-in, helping us decode and meet the demands of guest force which leads them to have value-driven experiences,” feels Zubin Saxena, Managing Director & Senior Area Vice President, South Asia at Radisson Hotel Group.
Agrees Nikhil Sharma, Regional Director for Eurasia, Wyndham Hotels & Resorts. “The hospitality industry showed resilience and has strongly bounced back. In 2022, the industry witnessed positive demand and growth as leisure travel picked up well. With technological advancements and smart ways of operating, the hospitality industry has successfully adapted and evolved in the new dynamics and is set to meet future challenges and cater to new opportunities in 2023 and beyond,” he opines.
With India holding the G20 Presidency, it is a never-before opportunity to showcase the nation’s tourism potential to the world, especially its innumerable hidden destinations – historical, architectural and those related to cuisine. And the ones the Government has been promoting lately – destinations related with spirituality, religion, wellness, films, sports and medicine as also enhancing the infrastructure in and around these locations and upgrading the connectivity facilities to these places. A case in point is the development of Kashi Vishwanath Corridor where a religious site has been converted into a project that benefits both visitors and investors.
According to the Ministry of Tourism, as per the current understanding, India will hold almost 200 G20 meetings at 55 locations. In the run up to the Presidency, the Ministry had organised a National Conference of State Tourism Ministers in Dharamsala to discuss the issues faced by state tourism ministries while looking at tourism aspects related to the G20 meetings. During the meeting, Union Tourism Minister G Kishan Reddy said that while the pandemic had badly hit the tourism industry, the sector was on the cusp of change. “If India needs to achieve its immediate goal of a $5-trillion economy and the long-term aim of a developed nation, then tourism has a very important role to play. For this, we must follow PM Modi’s emphasis on working jointly across ministries and states. We need to work to promote tourism and the concept of Dekho Apna Desh,” he had observed.
Saxena adds that the G20 Summit will open new growth avenues for the Indian travel and hospitality ecosystem while bolstering the demand for high-quality accommodation. “The country hosts over 200 meetings during this period. Hosting these will put a spotlight on several lesser-known tourism destinations and heritage sites in the country, bringing them to the forefront of the global tourism map. This will also add to the industry performance in FY23 in terms of occupancy, room rates, average room rates, and demand and supply which is expected to grow by a minimum of 15 per cent this year,” he says.
The time is also opportune for the hospitality industry to venture into unexplored markets and tourism hotspots in the country. As the Government explores and enhances the tourism potential of India, hospitality brands have the chance to invest and develop offerings like never before. “Driven by pent-up demand, 2023 will continue to witness growth in domestic travel. However, we also see a growth in international travel coming to discover the country. People are on the look out to explore new and untapped destinations as we enter a new year; staycations and workcations will continue to be in demand. With more disposable income, we observe a heightened curiosity about the country’s own travel spectrum. Our aim is to build strategic performance for all Accor India properties and curate bespoke experiences for our guests with key focus in creating value in the growth across all segments by encouraging positive work culture and people development,” shares Puneet Dhawan, Senior Vice President - Operations, India and South Asia, Accor.
While the Government seems bullish on the tourism sector and all its related aspects, there are several areas that are underperforming due to lack of support. Though the states of Maharashtra, Himachal Pradesh, Assam, Karnataka, Gujarat, Madhya Pradesh, Goa and Rajasthan have accorded industry status to tourism, the remaining states are yet to move ahead to extend the benefits and incentives of the industry to tourism.
Another important aspect is leveraging the opportunity when the right time comes. As India hosts the Men’s FIH Hockey World Cup and ICC Cricket World Cup this year, it should take cue from Qatar that hosted the 2022 FIFA World Cup last year and how it took a multi-pronged approach to promote and showcase the nation to the world. Qatar’s efficient advertising led to massive demand-supply gap in the accommodation for visitors and as a result, fans had to travel to UAE and Saudi Arabia to stay and travel from there to watch the matches. Thus, the sporting event gave a boost not only to its own hospitality industry, but those in nearby countries as well.
India, by the virtue of its size and potential, has enough offerings to be able to leverage and benefit from the demand such sports tournaments can usher in. However, without proper planning and efforts, such an opportunity is destined to go to waste. While OTA platforms like booking.com, yatra.com, easemytrip.com and makemytrip.com have played a key role in promoting India as a destination to the global travellers, they could have been adequately supported by the Government.
At present, all players and industries related to tourism are acting in silos. G20 Sherpa Amitabh Kant says the entire tourism sector is made of private players, be these tour operators, taxi drivers or hotels and accommodation providers. However, the role of the Government in this ecosystem was underlined by him. “The Government must assist, facilitate and act as a catalyst to ensure that the private sector is able to put up good facilities at destinations,” he had said.
It is time the Government steps up to tie-up all these efforts to present a tourism destination that is hard to resist.
