Building a Sustainable Future for Tourism

  Editorial   Mar 7, 2025  Add to Reading List
Building a Sustainable Future for Tourism

India’s tourism sector stands at a pivotal moment, offering immense economic promise while facing sustainability challenges. Contributing 6.8% to GDP and employing 9.2% of the workforce, the sector is a critical driver of economic growth and employment. However, a sustainable path forward is essential to balance development with environmental preservation and cultural integrity.

Current Status of India’s Tourism Sector

  • Post-Pandemic Recovery: Tourism in India is witnessing robust recovery, led by domestic travel. The sector is ranked 10th globally for its contribution to travel and tourism GDP.
  • Economic Contribution: In 2022, the sector contributed US$ 199.6 billion to GDP, projected to grow to US$ 512 billion by 2028, with an annual growth rate of 7.1%.
  • Employment Potential: By 2029, tourism is expected to generate 53 million jobs, solidifying its role as a significant employment provider.
  • Foreign Tourist Arrivals (FTAs): FTAs grew to 9.24 million in 2023 from 6.43 million in 2022. Tourists primarily came from Bangladesh (24.5%), the USA (20.4%), and the UK (6.9%).

Significance of Tourism for India

  1. Economic Growth and Employment Generation:
    Tourism boosts income, stimulates businesses across hospitality, transport, and retail, and is projected to create 39.5 million jobs by 2024. In 2023, Foreign Exchange Earnings (FEE) stood at US$ 28.1 billion.
  2. Cultural Preservation and Global Image:
    Tourism protects India’s rich cultural heritage and promotes its soft power globally. Initiatives like Swadesh Darshan revitalized circuits such as the Ramayana Circuit. India boasts 43 UNESCO World Heritage Sites, including the "Sacred Ensembles of the Hoysalas," attracting millions of visitors annually.
  3. Infrastructure and Regional Development:
    Tourism accelerates infrastructure development, especially in remote areas. The UDAN scheme expanded regional airports to 148, improving accessibility. In 2023, Jammu & Kashmir recorded 2 crore tourists, driving regional economic growth.
  4. Environmental Sustainability through Ecotourism:
    Ecotourism promotes biodiversity conservation while supporting livelihoods. For instance, Kaziranga National Park earned ₹8.8 crore in 2024 from ecotourism revenues. Programs like Travel for LiFE advocate low-impact, eco-friendly tourism practices.
  5. Healthcare and Wellness Hub:
    India’s advanced yet affordable healthcare attracts global medical tourists. The medical tourism sector reached US$ 9 billion in 2022, with 6,50,000 medical visas issued. Initiatives like Ayush Visa and Ayurveda conferences position India as a leading wellness tourism destination.
  6. Diplomacy and Global Engagement:
    Events like the G20 Summit 2023 showcased cities such as Guwahati, Indore, and Khajuraho to global audiences. Platforms like Pravasi Bharatiya Divas further strengthen India’s global outreach and tourism-driven diplomacy.
  7. Rural Development and Social Equity:
    Tourism bridges rural-urban gaps by promoting village economies and preserving traditions. Initiatives like Kumbalangi (India’s first model tourism village) and LadpurKhas (UNWTO-recognized) empower rural communities.
  8. Pandemic Recovery:
    Domestic tourism rebounded strongly post-pandemic, with 1,731 million visits in 2023 (up from 677 million in 2021). Campaigns like "Dekho Apna Desh" and G20 initiatives significantly boosted recovery.
  9. Promoting Startups and Entrepreneurship:
    Over 1,500 tourism startups are innovating with digital solutions. Programs like the National Tourism Policy 2022 encourage rural micro-enterprises and skill training.
  10. Sports and Event Tourism:
    Events like the ICC Cricket World Cup 2023 brought over 1 lakh international fans, generating ₹11,637 crore in economic activity. Festivals like IFFI in Goa highlight India’s event tourism potential.

Challenges Facing the Tourism Sector

  1. Inadequate Infrastructure:
    Poor roads, lack of high-end facilities, and uneven development restrict growth, especially in states like Bihar and Jharkhand.
  2. Environmental Degradation and Over-Tourism:
    Over-tourism has led to crises, such as Shimla’s 2018 water shortage and Goa’s rising plastic waste problem.
  3. Domestic Tourism Dependence:
    While domestic spending grew by 15% in 2023, international spending remains 14% below 2019 levels, limiting foreign exchange earnings.
  4. Safety Concerns:
    Rising safety issues for women and solo travelers impact India’s global image.
  5. Workforce Skill Shortage:
    The sector faces a 3.5 million skilled worker gap, affecting service quality.
  6. Policy Fragmentation and Funding Gaps:
    Despite budget boosts, cuts in global promotions and delays in finalizing the National Tourism Policy hinder growth.
  7. Cultural Erosion:
    Over-commercialization undermines authentic cultural experiences, as seen in Jaipur’s art markets.
  8. Digital Lag:
    Many states lack robust digital systems for tourism management, unlike global leaders like Singapore.

Measures to Promote Sustainable Tourism

  1. Develop Eco-Friendly Infrastructure:
    Implement green building practices, solar-powered facilities, and efficient waste systems. The Swadesh Darshan 2.0 scheme prioritizes destination sustainability.
  2. Promote Community-Based Tourism:
    Expand rural tourism programs to empower local economies. Successful models like Hodka village (Gujarat) can be replicated.
  3. Public-Private Partnerships (PPPs):
    Collaborate on eco-parks, heritage restorations, and infrastructure projects, following the success of the Statue of Unity.
  4. Strengthen Waste Management:
    Replicate plastic-free zones and implement marine pollution controls, especially in Goa and Kerala.
  5. Leverage Technology:
    Use AI-driven crowd management, virtual tourism, and smart ticketing to improve tourist experiences.
  6. Adopt Renewable Energy:
    Incentivize carbon-neutral operations with subsidies and tax rebates.
  7. Regulate Capacity in Fragile Destinations:
    Limit tourist numbers in overcrowded areas like Shimla using online permits, inspired by Bhutan’s sustainable model.
  8. Promote Low-Impact Transport:
    Expand electric transport options, as seen with Kerala’s e-mobility program.
  9. Preserve Cultural Heritage:
    Develop new tourism circuits like the Ramayana Circuit while emphasizing authenticity.
  10. Global Collaboration:
    Learn from sustainable tourism leaders like Bhutan and Costa Rica to adopt best practices.

Key takeaways
India’s tourism sector has the potential to drive sustainable growth while aligning with key Sustainable Development Goals (SDGs), such as decent work (SDG 8), climate action (SDG 13), and cultural preservation (SDG 11). By prioritizing inclusive, eco-friendly, and responsible tourism, India can safeguard its natural and cultural heritage, create economic opportunities, and emerge as a global leader in sustainable tourism.