Tourism and hospitality, a key sector of the Indian economy, plays a key role in the growth of Brand India and accounts for around 12.4 per cent of the total employment in India. Globally, tourism ranks fifth as an export category after fuels, chemicals, food and automotive products. The tourism and hospitality sector is among the top 10 sectors in India to attract the highest foreign direct investment (FDI).
The tourism and hospitality sector in India is highly optimistic with a large number of hotel chains having lied up their expansion plans. Already the sector was facing a near 30 per cent shortage in skilled workforce.
The renewed sense of optimism comes on the back of a volatile economic environment for most part of 2014 and the sector hopes that initiatives announced by the new government, including those related to e-visas, Tourist Visa on Arrival and specific funds for developing tourist circuits, would lead to good business.
The policies and changes implemented by the Government of India have been instrumental in providing the necessary boost to the Indian tourism and hospitality industry and attracting more and more foreign tourists every year.
According to 2014 statistics shared by the Ministry of External Affairs, Government of India, the Indian hospitality sector has been growing at a cumulative annual growth rate of 14 per cent every year.