Impact Of Covid-19 On Tourism Industry In India

With a rich culture, mesmerizing beauty of heritage sites and biodiversity hotspot, Modern Indian stands out for nation of linguistic. India has achieved the greatest improvement, spot at 34th rank at world travel and tourism competitiveness index. The Indian travel and tourism industry is one of the largest service sectors accounted over 39 million jobs that are almost 8% of the total employment of the country. In an estimation by IBEF, it was expected, Travel and Tourism industry will generate 53 million additional jobs by the end of the year 2029. 

The travel and Tourism industry is one of those industries highly susceptible to adverse events repercussions. At odds, the recent breakthrough of the Covid-19 pandemic halted exponential growth of the sector likely to cost over USD 22 billion and 14.5 million jobs lost during the first quarter of 2020- Ramesh Kaushik referenced in NCAER report.

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In 2019, the ministry of Tourism produced a ballpark figure for low-cost airlines to promote domestic travel. Low-cost airlines sponsored under UdeDeshkaAamNaagri(Udana) scheme foreseen connection between different regions of the country and it was expected by 2020, the number of international and India’s domestic passengers increased by 3.1 and 14.3% respectively. However, Covid-19 emergence disrupt the whole of travel and aviation badly. 

Foreign Tourist arrivals as recorded on March 2020 were 3,28,462 which was 9,78,236 in March 2019, registering a decline of 66.4%. However, the percentage of Foreign tourist arrival was highest from the USA(25.6%). As of June 2020, 49% of change has been recorded in passenger demand as compared to 2019. 

Conrad Clifford IATA vice President said, 2020 is the worst year for the tour and travel industry where airless are fighting for the survival.

Country% Change in Passenger(2019-2020)Original Destination Volume(2019-2020)Impact On Revenues(USD)Job Loss
Table. FY2020, Regional Losses Estimation By International Airport Transportation

Source- Gautam, 2021

Travel and tourism is an integral part of Make My India. A recent report released by the Federation of Indian Chambers of Commerce and Industry concludes India’s medical tourism is expected to grow by USD 9 million. This is because a rising cost of medical services will make India Affordable.

On the other side Domestic leisure has been seen as survival factor since lockdown lifted and hostel open. According to Statista 2020, the share of the revenue from leisure and business spending was 97% in India. As compared to leisure spending business spending share 3% for the same year.

Cultural tourism extensively classified by type of domestic and international culture grow rapidly in India. Cultural tourism is expected to grow at 7% CAGR between 2019-2020(Technivo, 2021)Meanwhile with increasing monied middle-class families, domestic cultural tourism is expected to grow by 186 USD.

As per the latest report of IBEF, 2020, the travel and tourism industry GDP contribution is expected to be worth US$ 512 billion by 2028 as compared to US$ 121.9 billion in 2019. The Ministry of Travel and Tourism launched NIDHI ‘Atithi Devo Bhava’ ‘Incredible India!’ to focus on impetus market growth. With the advent of technology, the scope of the online travel market devoted almost 4% of spending. The competition offered by major key players like Make my trip,,, Expedia currently dominating the market or trying to inhibit new entrants. In August 2020, Make My trip launched Mypartner to assist the travel agents in order to offer advance travel booking. However, technology advancement, new entrants in the market sphere could enhance the competition even post pandemic

The factor driving the FTAs in India are weather and climate, landscape, Seascape cultural and historical resources, The Himalaya range, latitudes extension towards the tropic of cancer blessed India with huge diversity. The most ancient civilization traces, amazing architectural designs, riverside, waterfall gorges etc are ready to provide a lifetime experience to travellers.

Travel and Tourism Revenues are projected to increase by US$8,400m 2021 The largest segment of Industry are hotel having a projected market value of US$4,059m by 2021 The number of users will be amounted to 5.9 million in 2026 The user penetration is expected to rise by 7.2 % in 2026 In 2026, 56% of the total revenue will be generated by online sales  
Source- Statista, 2020

To conclude, it can be said at the global competition, India’s Tourism and Travel industry were doing relatively better than other countries, but the hard-hit of Covid-19 has disrupted the market current position. But along with government initiatives and their support, there are higher chances of improving the current market volume of the Travel and Tourism industry.

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