Indias Forex Eearnings in tourism reach US $ 26 bn by 2015

by ASSOCHAM

World Tourism Day - September 27

Tamil Nadu Commands 2nd Highest Share in Foreign Tourist Arrival Across India

Growing at a compounded anual growth rate (CAGR) of nearly 13%, India’s foreign exchange earnings from the tourism sector are likely to reach US $ 2,600 crore in 2015 from the current level of about $ 2,000 crore, apex industry body ASSOCHAM said recently.

“Growing at a CAGR of nearly 7%, the arrival of foreign tourists in India is likely to cross about 80 lakh mark by 2015 from the current level of nearly 70 lakh,” according to an analysis of international tourist receipts and foreign tourist arrival in India conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) ahead of the World Tourism Day celebrations on September 27.

Maharashtra, Tamil Nadu, Delhi, Uttar Pradesh (UP) and Rajasthan are top five destinations attracting maximum number of foreign tourists and collectively account for 70 % of the total number of foreign tourists visiting India.

Tamil Nadu commands second highest share of over 17% in total number of foreign tourists arrival in India. The number of foreign tourist arrival has increased by almost 3 times in Tamil Nadu during 2006-2012  i.e. from over 13 lakh foreign tourists in 2002 to over 35 lakh foreigners visiting the state in 2012 there by registering massive growth of nearly 170% during this period.

Mr. D.S. Rawat, Secretary General, ASSOCHAM while releasing the chamber’s analysis said,  “Making significant strides in the tourism sector, India has improved its share in international tourism receipts during the course of past decade i.e. from nearly 0.64% in 2002 to about 1.65% in 2012, besides India has also improved its world ranking in this regard from 37th position in 2002 to 16th rank in 2012”

“Centre should further push India’s tourism industry as its total contribution to India’s gross domestic product (GDP) is about 6.6%, its contribution to the total workforce is about 7.7 % and accounts for over 6 % of the total investments,” said Mr. Rawat.

 “Besides, the foreign exchange earned through tourism is critical to combat the rising current account deficit (CAD) and as such the government should look to boost foreign tourist inflow by easing its strict visa regime, entering into an agreement with various countries’ through embassies and high commissions to strengthen tourism cooperation aiming at destination development, promotion, marketing and capacity building.”

“Importance of tourism as one of the major foreign exchange earner can also be gauged from the fact that during 2012, with over US $ 17 bn earnings tourism emerged as India’s 4th biggest foreign exchange earner after India’s principal exports of petroleum (US $ 6080 crore), gems and jewellery (US $ 4,330 crore) and transport equipments (US $ 18,300 crore),” added Mr Rawat.

While globally, the international tourism receipts grew from nearly US $ 48,200 croren 2002 to US $ 10,75,00 crore in 2012, the international tourism receipts in Asia-Pacific region grew from about US $ 9650 crore to about US $ 32,300 and in India it increased from a level of about US $310 Crore to over US $ 1,770 Crore.

“Thus in terms of growth in international tourism receipts, India has clocked a CAGR of 12.9% which is higher as compared to 9.5% at Asia-Pacific level and 6.1 per cent globally,” highlighted the ASSOCHAM analysis.

In terms of the India’s share in the tourism receipts in the Asia-Pacific region, India has increased its share from 3.2% in 2002 to about 5.5% in 2012 and India has also improved its ranking from 13th to 7th in this regard.

Foreign tourist arrivals in India has been growing at a CAGR of about seven per cent which is higher than rate of tourist arrivals across world over which has been growing at about 3.8% and overseas tourism in Asia-Pacific region that has been growing at about 6.6 per cent.

“But India’s share in foreign tourist arrivals has increased marginally during the last 10 years i.e. from 0.34% cent in 2002 to about 0.64% in 2012 and India’s rank has also improved from 54th to 41st in this regard,” said Mr. Rawat.

“In terms of the Asia-Pacific region, India’s share has increased from nearly 1.95% to about 2.8% during 2002-2012 but there has not been much of change in India’s rank which has improved by just one spot i.e. from 12th rank to 11th rank during the aforesaid period.”

The international tourist arrivals has increased from over 70.30 crore in 2002 to about 10,350 crore 2012, while at the Asia-Pacific level the tourist arrivals increased from over 12.30 Crore  to about 23.40 Crore and in India the foreign tourist arrival grew from over 23 lakh to over 65 lakh during this period.

The United States of America (USA) commands the highest share of about 16 per cent in the total arrival of foreign tourists across India with over 10 lakh tourists followed by the United Kingdom (UK) (11.9% share) with over 7 lakh tourists visiting India from that country. Bangladesh (7% share), Sri Lanka (4.5% share) and Canada (3.8% share) are amid top 5 countries with maximum foreign tourist arrivals in India.


Report by ASSOCHAM
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