Highlights:

• India’s travel and tourism industry is expected to rise upto Rs 15 US$ 275.5 billion by 2018

• It is estimated that the hospitality sector is likely to see US$ 11.41 billion in the next two years

• While 2009 is a tough year for the business, thanks to global meltdown, these industries offer good prospects in future.

The Indian tourism and hospitality industry has been on a roll, driven by the huge surge in both business and leisure travel by domestic and foreign tourists. While 2009 is a tough year for the business, thanks to global meltdown, the industry offers good prospects in future. According to the Travel & Tourism Competitiveness Report 2009 brought out by World Economic Forum, India is ranked 11th in the Asia-Pacific region and 62nd overall in a list of 133 assessed countries in 2008, up three places since 2007.

The country's travel and tourism industry is expected to generate approximately US$ 100 billion in 2008, rising to Rs 15 US$ 275.5 billion by 2018 over the next ten years, as per the latest Tourism Satellite Accounting (TSA) research released by the World Travel and Tourism Council (WTTC) and its strategic partner Accenture.

Inbound Tourism

India, with its diverse countryside, offers huge scope for various theme-based travel like Medical Tourism, Adventure tourism, Heritage tourism, Wellness tourism, Pilgrimage tourism, Golf tourism, Eco-tourism, Wildlife tourism among others.

The flow of foreign tourist arrivals has been recording high growth rates. The number of arrivals has increased from 3.9 million in 2005 to 4.4 million in 2006 and 4.9 million in 2007, recording a growth rate of 13.5 per cent in 2006 (over 2005) and 11.9 per cent in 2007 (over 2006).

Total earnings from foreign tourists has shown an annual growth rate of 19.2 per in 2006 and 33.8 per cent in 2007 to garner US$ 7.49 billion in 2005, US$ 8.93 in 2006 and US$ 11.96 billion in 2007.

Continuing the foreign tourists' interest in the country, the first quarter of 2008 recorded a growth rate of 12.2 per cent (in tourist arrivals) over the corresponding period in 2007, receiving 1.65 million in foreign tourist arrivals. Simultaneously, foreign exchange earnings grew by a much faster rate at 34.5 per cent in 2008, against 19.5 per cent during corresponding period in 2007. Total foreign exchange earnings totaled US$ 4.03 billion, against US$ 2.99 billion in 2007.

According to the World Travel and Trade Council, Indian tourism demand will continue to grow at a rapid pace. It estimates the demand to grow at an average of 8.8 per cent between 2004 and 2013, making India the world's third fastest growing tourist market.