Travel and tourism sector — a pillar of an economy
An economy thrives on the various sectors that oil the wheels of a country. In India, the travel and tourism sector falls under the ambit of the services sector, which being the largest of its kind assists the growth of the economy the most. According to the World Travel and Tourism Council (WTTC), the contribution of this sector to India’s economy stood at approximately ₹16.5 trillion in 2023. Data says that it generated 7.6% of the global GDP in 2022 post-COVID when this domain witnessed a setback.
Several businesses depend on tourism, viz. hotels, restaurants, local enterprises, handicrafts, transport and tourist attractions. Increase in tourism is directly proportional to the boom of these businesses which in turn creates jobs and adds to the revenue. Influx of tourists boosts demand for places of accommodation leading to hotels mushrooming and consequently providing jobs for both low and high-skilled workers. Visitors also take an interest in the regional traditions and cultures as a result of which local markets flourish. International tourism augments the forex reserves which can be used for the region and the nation’s development.
A tourism hotspot attracts capital investment in infrastructure building. To sustain attraction of tourists, construction and development of roads, highways, railway lines, airports and other facilities become essential. This sector is also directly connected to the agriculture sector. Some products have specific geographical origins like Kerala spices and Assam tea, which are not only exported but also sold in large scales to tourists. Prosperity of local industries with the proliferation of tourists results in the industrial sector’s growth. Amelioration of the tourism sector may also bring about technological advancements in manufacturing processes of local products, thus engendering a shift from traditional means of livelihoods, and enable technology like holograms and drones’ usage at tourist spots.
Reportedly, the US, Spain and France earn the highest tourism revenue from international visitors. Alternatively, Sri Lanka was looking to draw foreign exchange through tourism during its economic crisis. Aruba, the Bahamas, Maldives are among the economies highly dependent on this sector. Tourism is ergo a key sector playing a crucial role in an economy’s development.
