According to a study conducted by the World Travel and Tourism Council (WTTC), in 2022 the travel and tourism sector’s contribution to the Indian economy was expected to surpass even pre-pandemic levels. The Economic Impact Report of the WTTC indicated that travel and tourism contributed approximately U.S. $215 billion to the nation’s economy in 2022 and employment grew by 8.3%.
This report also indicates that the travel and tourism sector of India is expected to grow exponentially. So much so that by 2030, travel and tourism will represent at least 7% of India’s total economy. The report also suggests that this sector will generate 2.4 million jobs every year in the next decade.
When is National Tourism Day
Every year on 25th January our country celebrates National Tourism Day not only to celebrate the diversity of India but to also spread awareness about its impact on the Indian economy. In 2022, on the occasion of National Tourism Day to mark 75 years of India’s independence, Prime Minister Modi announced ‘Azadi ka Amrit Mahotsav,’ a 75-week grand celebration. And the theme for this year’s National Tourism Day is “Rural and Community-Centric Tourism.’
Economic Impact of Tourism in India
While assessing the economic impact of tourism in our country, we largely focus on factors such as sales and income generated, employment generation, changes in government spending, and investment in new businesses and developing infrastructure. Tourism in India has several direct and indirect benefits for the Indian economy. Now, let’s see some of the positive as well as negative impacts of tourism on the Indian economy.
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Tourism as a source of foreign exchange earnings- It is no surprise that the majority of tourists in India come from foreign countries. Therefore, their spending and expenditure on Indian goods and service make an enormous impact on the foreign exchange reserves of India.
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Seasonal employment- One of the drawbacks of tourism on the economy is the seasonal nature of employment. Once the tourist season draws to an end, a lot of people find themselves jobless for the rest of the year.
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Development of surrounding infrastructure- High concentration of tourists in a destination encourages the development of infrastructure, such as better means of transportation, health care facilities, and sports centres.
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Facilitates local culture and craftsmanship- When tourists travel to new destinations, they partake in cultural activities and support local craftsmanship. This also helps safeguard old customs, traditions, and artistry.
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Increased prices of goods and services- Tourism usually leads to price hikes of basic goods and services. An increase in prices has an extremely negative impact on the local residents whose income is not increasing with the hike.
Now, let’s take a look at the impact of tourism on the environment, culture, and society.
Just like the economy, tourism also has a positive and negative impact on the environment, culture, and society at large.
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Tourism increases the awareness of a destination’s history, culture, artistry, cuisine, and heritage.
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Studies show that tourism is linked with the strengthening of regional values and traditions.
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Tourism leads to the preservation of heritage, improvement in local infrastructure, and construction of new facilities.
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Tourism leads to the preservation of national heritage and the environment. If any of the historical sites did not attract tourists to them, they would have been left destroyed and dilapidated.
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Some of the negative impacts of tourism include- architectural pollution, and strain on the ecology. Changes in community structure, an increase in theft and sexual crimes, and the economic exploitation of the local population.
