The Rapidly Growing & Strengthening Potential of the Tourism & Hospitality Industry in India

The Tourism & Hospitality sector has always remained one of the prime contributors to our country’s economy. Let’s take a closer look at the rapidly growing potential of this industry and how it is emerging as one of the best options from the employment perspective.

30 seconds summary:

  • The tourism & hospitality industry is a major contributor to India’s GDP.
  • Greater employment opportunities stemming from an increase in investments and new government initiatives.
  • The pandemic has only been a temporary setback to the potential of the sector.
  • More Indian tourists are eager to travel internally in the current scenario.

From having some of the most remarkable landscapes on earth to a unique historical and cultural heritage, our country is well-endowed in more ways than one. To add to all that, India is also a rapidly developing nation that the top multinationals are considering as one of the major hubs for their operations. When you consider facts like these, the immense potential of the tourism and hospitality industry in India becomes clear as the day.

The country has truly made the most of its potential as the tourism and hospitality sector continues to be one of the foremost drivers of growth among our services sector. In this regard, the fact that the contribution of travel and tourism to GDP in 2019 was 6.8 percent (US$ 194.30 billion) of the total economy would be a good case in point. (Source:

No wonder, tourism and hospitality are emerging as one of the prime career choices among the youth of the nation. And before you embark on your journey, we, at Avlon Shiksha Niketan, one of the finest travel and tourism colleges in Kolkata, would like to give you a clear idea of the massive potential that the industry holds and the actual picture of the scenario post the pandemic.

The figures showcasing the increasing potential of the industry

We have already mentioned how the industry majorly contributed to the country’s GDP in 2019. The fact is that the tourism & hospitality industry has come to the forefront of the economic progress of India in every financial year. As a matter of fact, if these growth trends of the last five years are considered, the scenario looks truly promising in the years to come.

 In 2017, the contribution of the industry to India’s GDP was more than US$ 91 billion, which increased to over US$ 98 billion in 2018. During 2019, over 10.89 million foreign tourists arrived in the country, which means a year-on-year growth rate of 3.2 percent. In the previous year, 10.56 million foreign tourists visited India, which was an increase of 5.2 percent from the figures of 2017.

The number of hotel chains, restaurants, and ancillary services has also increased in tandem in the past couple of years. And this translates into some really great numbers in terms of employment opportunities, which also brings us to the next segment of our discussion.

The growth and diversity of employment opportunities

Reports show that international hotel chains have increased their presence in India. At present, it accounts for around 47 percent share in the industry, and it’s expected to rise to 50 percent in a span of two years. The increase in investments naturally stems from the demand for the tourism and hospitality sector in the country, which is also proven by the fact that this sector received a total FDI inflow of over US$ 15.48 billion from April 2000 to June 2020.

These figures show a bright ray of hope for the young aspirants studying in the travel and tourism colleges in Kolkata. After all, the increase in the number of tourist inflow and hospitality establishments leads to a subsequent growth of job opportunities. And, in fact, 39 million jobs were generated in the tourism and hospitality sector in India in the fiscal year 2020, which made up about 8 percent of the country’s total employment.

The key drivers behind the strengthening potential of the sector

The facts and figures we have discussed above must have made it amply clear that the growth of the tourism and hospitality sector is relentless. Now, let’s try to understand these growth trends further by outlining their key drivers:

  • Government initiatives leading to infrastructural improvement:

The government has made significant strides in bringing infrastructural improvements in the industry to ensure its further growth. Along with the inauguration of several new tourist spots across the country, the Ministry of Tourism has aimed at encouraging local tourism through initiatives like Swadesh Darshan for eight Northeast states.

  • The steadily increasing number of international tourists:

We have already shown the numbers with regards to the increasing influx of foreign tourists in the country. The fact remains that India is still an affordable destination to most of the international tourists from the developed nations. Add the diversity of traditions, places, cultures, and food choices to the mix, and you’ll know why India remains the top choice of millions of foreign tourists.

  • The rising competition in the tourism & hospitality sector:

The direct result of this increase in demand and investments in the sector is seen in the growing competition among the businesses. Every establishment, regardless of their scale of operations, wants to stand out from the rest in terms of their customer services, facilities offered, location, and so on. And, in an obvious cycle of events, it translates into better employment opportunities for skilled professionals.

The picture of hope for the future of the tourism & hospitality sector

We cannot discuss the growing potential of the sector without dwelling upon the ongoing pandemic and its impact on the tourism and hospitality industry. After all, there is no denying that the pandemic had given a never-seen-before heavy blow to the sector. Yes, we said “had” because the industry has already bounced back and shown how those setbacks are a thing of the past.

With greater attention to safety measures, the airports, hotels, restaurants, and local destinations have opened up their doors to welcome the excited travelers. And, they have reasons to rejoice as 65 percent of Indian travelers want to travel more in the upcoming years to make up for all the lost time in 2020.

Furthermore, 52 percent of Indian travelers are planning to travel more within the country on a long-term basis. Thus, even though international trips are going to have to wait and so does the international tourists, the tourism & hospitality sector will still go on strong.

At Avlon Shiksha Niketan, one of the top travel and tourism colleges in Kolkata, we prepare you to become an accomplished part of this booming sector of the country. With the experiential learning and real-world skills that you acquire during your time with us, you will be ready to make the most of all those opportunities mentioned above. So, are you ready to have a high-flying career in the rapidly growing tourism and hospitality sector of India?