Tourism as India’s Game Changer: Unlocking 61 Lakh Jobs and a $3 Trillion Opportunity

The 18th CII Annual Tourism Summit 2024 deliberated upon this theme and much more.

“Can Tourism Be the Game Changer for India?” This was the core issue at the recently held, the 18th CII Annual Tourism Summit, at the Taj Mahal Hotel in New Delhi. Deliberating upon the transformative role of tourism in driving India’s economic growth, the summit brought together senior government officials, states (Andhra Pradesh, J&K and Punjab), diplomats, industry leaders, tour operators hoteliers, travel aggregators, niche tourism players and academia.

Globally, the sector is a powerful economic force, directly supporting over 300 million jobs as per the International Labour Organization (ILO). Before the pandemic, tourism accounted for one in ten jobs globally and contributed over 10% of global GDP. Its intrinsic alignment with the Sustainable Development Goals (SDGs)—notably SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production) and SDG 5 (Gender Equality)—underscores its capacity to foster equitable and sustainable growth.

In India, tourism’s contributions to GDP and employment have been substantial. In 2023, the sector contributed $231 billion to India’s GDP, ranking as the second highest in the Asia-Pacific region, with projections indicating a doubling of this figure by 2034. Its share of GDP is anticipated to grow from 6.8% in 2024 to over 7.6% by 2036-37.

At the summit, the release of the CII-EY report, Employment Landscape in Tourism and Hospitality in India, provided fresh insights into this dynamic sector. The report projected a 1.2x increase in tourism spending by 2036-37, translating into the creation of 61 lakh additional jobs. Among these, 15 lakh jobs are expected to be filled by women, marking a significant step toward gender inclusivity in the workforce.

Speaking at the summit, Shri Gajendra Singh Shekhawat, Hon’ble Minister of Tourism & Culture, reflected on the sector’s transformative power. “Tourism is a multifaceted driver of economic growth. It generates employment, fosters cultural exchange and contributes to community development. The infrastructure progress we’ve made in the past decade lays a robust foundation for achieving our tourism aspirations,” he said.

The summit’s discussion repeatedly emphasized the critical role of infrastructure in enabling tourism growth. India has made remarkable strides in developing transportation networks, including airports, metros and highways. However, gaps in regional connectivity and hotel capacity remain pressing challenges.

Puneet Chhatwal, Chairman, CII National Committee on Tourism & Hospitality and MD & CEO of Indian Hotels Company Limited (IHCL), articulated the need for policy interventions. “Granting infrastructure status to tourism would enable access to affordable financing and longer loan tenures, catalysing investments across the sector. Rationalizing GST rates for hospitality and aligning governance structures with the sector’s unique demands are equally critical,” he stated.

Chhatwal also emphasized that tourism services provided to foreign tourists in India, for which payment is received in foreign exchange, should be classified as deemed exports. “By zero-rating these transactions under GST while preserving input tax credits, we can make India a more competitive destination, attracting more international visitors and boosting foreign exchange inflows,” he added.

India’s diversity offers unique opportunities in niche tourism segments such as wellness, spiritual and experiential tourism. Amitabh Kant, India’s G20 Sherpa,underscored this potential, saying, “India’s cultural heritage and biodiversity position it as a global leader in high-value tourism. By focusing on experiential travel, we can differentiate ourselves from other destinations and attract travellers.”

A vivid example is Bodh Gaya, the site of Lord Buddha’s enlightenment. “With 535 million Buddhists worldwide, Bodh Gaya should be attracting millions of visitors annually. Yet only 0.25 million foreign tourists visit. This isn’t just a statistic—it’s an opportunity to rethink our approach to global marketing, infrastructure investment and destination management,” Chhatwal emphasized.

Similarly, wellness tourism rooted in yoga and Ayurveda holds significant promise. With increasing global awareness of health and well-being, India can establish itself as a preferred destination for wellness retreats, leveraging its ancient traditions and modern facilities.

The Northeast region, often described as the “jewel in India’s crown,” was a focal point of discussions. Jyotiraditya Scindia, Hon’ble Minister of Communications & DoNER, highlighted the region’s progress in infrastructure development. “With new airports in Sikkim and Arunachal Pradesh, improved national highways and enhanced telecom connectivity, the Northeast is better positioned than ever to welcome domestic and international tourists. Its pristine landscapes and vibrant cultures offer curated experiences that set a new benchmark for experiential tourism,” Shri Scindia said.

He also spoke about balancing development with ecological preservation, emphasizing the role of sustainable tourism in ensuring long-term growth. “Our focus should be on creating immersive experiences that respect and preserve the region’s natural beauty while contributing to local economies,” he added.

Jammu & Kashmir was positioned as another promising destination with untapped global potential. Omar Abdullah, Chief Minister of Jammu & Kashmir, emphasized “Kashmir must move beyond volume-driven tourism and focus on value-based offerings that ensure quality and sustainability. Investments in connectivity and infrastructure, such as the Sonmarg tunnel and the Kishtwar airstrip under the Udaan Scheme, are vital steps in this direction,” he stated.

Abdullah also highlighted the region’s potential to host winter business events and its appeal as a year-round destination. By showcasing such destinations, we can redefine the perception of Kashmir on the global stage,” he said.

State-level strategies were presented as pivotal to unlocking tourism potential. Andhra Pradesh showcased its “Swarna Andhra Tourism Vision 2047,” focusing on religious sites, eco-tourism circuits and workforce skilling. Uttarakhand emphasized wellness, adventure and nature tourism, coupled with skill development to create a specialized workforce.

Punjab highlighted its cultural and historical significance, emphasizing heritage tourism rooted in Sikh culture and ancient civilizations. Collaborative efforts to enhance branding, infrastructure and community-driven experiences were presented as key drivers of growth.

Inclusivity emerged as a central theme of the summit, with a particular focus on empowering women in the tourism workforce. Tourism provides unique opportunities for women to contribute meaningfully, especially in homestays, hospitality and event management. Creating a safe and supportive environment is essential to unlocking this potential.

The CII-EY report reinforced this perspective, projecting a 12% increase in women’s participation in tourism-related jobs over the next decade. Community-driven models and entrepreneurial initiatives were identified as key drivers of this inclusivity, fostering innovation and equitable growth across urban and rural areas.

The summit reiterated the industry’s long-standing demands, emphasizing the need for a unified national policy to streamline governance and address operational inefficiencies. Establishing employment-linked incentive schemes and introducing a Tourism Employment Index were proposed as measures to align workforce development with industry demands.

Chhatwal highlighted the importance of elevating India’s tourism brand on the global stage. “To compete internationally, we must focus on marketing campaigns that present India as a 365-day destination, emphasizing its diversity, accessibility, and unique cultural offerings,” he said.

As the summit concluded, there was a shared sense of optimism about tourism’s role in shaping India’s socio-economic future. Tourism is not just an economic contributor—it is a cultural bridge, a force for diplomacy and a platform to showcase India’s rich heritage to the world.

The journey from ‘Incredible India’ to ‘Inevitable India’ is not just a dream but a tangible goal.

The roadmap for achieving this vision is clear. Investments in infrastructure, enhanced destination management, sustainable practices and inclusivity are vital. The transition will require collaboration between policymakers, industry, businesses and local communities to create an ecosystem that supports innovation and growth.

India’s aspiration to become a $3 trillion tourism economy by 2047 is both ambitious and achievable. As Minister Gajendra Singh Shekhawat aptly put it, “Tourism is a game changer—not just for the economy but for the soul of our nation.”


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