Travelling has immediately transformed from a luxury in the 20th century to a necessity in 21st Century. It is a new and incessant part of lifestyle of Gen Y or Millennials. Tourism is also witnessing new shoots like Medical tourism. According to WTTC, India ranked 10th among 185 countries in terms of travel & tourism’s total contribution to GDP in 2019. During 2019, contribution of travel & tourism to GDP was 6.8% of the total economy. India was globally the third largest in terms of investment in travel and tourism with an inflow of US$ 45.7 billion in 2018, accounting for 5.9% of the total investment in the country.
Although Urban Tourism in India is expanding at lightning speed, tourism in rural India is growing in a disorganized manner, bringing forward issues of safety, ease, professionalism, infrastructure etc. the following are steps required and benefits from rural tourism in India-
Rural tourism can push GDP in rural areas by creating demand, both by tourists and local population. The ripple effects of this can be felt in terms of higher employment, higher exposure for the local populace, more integration with global economy and self- dependence of local economy.
Banking and Financial systems can expand faster into rural areas with higher rural tourism. This will give way to financial inclusion in rural India.
Tourism is not limited to the older methods of travel. Organic farming tourism, Health tourism, Agri tourism, MSME tourism, tele tourism etc are new and promising ways in which tourism can be experienced. Rural India can benefit from all of these and thus contribute towards organic infrastructure development in rural areas.
Once rural tourism expands, foreign investment can flow into India to take advantage of this new industry. This will bring capital for asset creation in rural areas.
India’s tax base presently stands at 1.5 crore taxpayers out of 130 crore citizens i.e. 1 percent of population. 3% of working adults (25-65 years) pay income taxes. Rural tourism can bring more people in the tax net and thus can increase tax base of India.
Rural tourism can create more employment opportunities in rural areas, thus limit migration from rural to urban areas, reducing pressure on urban administration and more balanced development of the entire country.
Creation of better infrastructure in rural areas, in order to satisfy the needs of tourists (better toilets, better public transport, more cleanliness, more tourist friendly locals) will also result in better infra for local populace (schools and hospitals)
However, rural tourism cannot grow on its own. The government, NGOs and risk taking entrepreneurs need to take the initial steps to ensure its growth-
Basic infrastructure development in rural areas along with connectivity with major metropolitans is a pre-requisite to attract tourists into rural areas.
The rural youth needs to be trained and educated in hospitality for better treatment and more safety of foreign tourists. Specific training programmes like SAATHI can help in implementing this effectively.
Tourist circuits cutting across rural areas can expand the economy of those areas and give a push to rural tourism too. Swadesh darshan scheme is focused on development of theme based tourist circuits in India.
According to Dr Raghuram Rajan, India accidently surpassed manufacturing to expand its services sector. The 21st century post covid is going to be service led through digital economies. India can take advantage of this shift to become a leader in providing world- class services to the global consumer. Rural tourism can be a part of this revolution towards services, digital and physical.
Note:
The Indian Government has realised the country’s potential in the tourism industry and has taken several steps to make India a global tourism hub.
Some of the major initiatives planned by the Government of India to boost the tourism and hospitality sector of India are as follows:
In October 2020, Prime Minister Shri Narendra Modi inaugurated four new tourist attractions in Gujarat namely, Arogya Van, Ekta Mall, Children's Nutrition Park and Sardar Patel Zoological Park/ Jungle Safari, near the Statue of Unity at Kevadiya in Narmada district.
The initiative is a part of 17 new projects that are planned. Additionally, the government will also launch seaplane service from Ahmedabad to Statue of Unity in a major push to India’s tourism.
The Ministry of Tourism developed an initiative called SAATHI (System for Assessment, Awareness & Training for Hospitality Industry) by partnering with the Quality Council of India (QCI) in October 2020. The initiative will effectively implement guidelines/SOPs issued with reference to COVID-19 for safe operations of hotels, restaurants, B&Bs and other units. Ministry of Tourism launched Dekho Apna Desh webinar series to provide information on many destinations and sheer depth and expanse on the culture and heritage of India. Ministry of Tourism launched Audio Guide facility App called Audio Odigos for 12 sites in India (including iconic sites). Prime Minister, Shri Narendra Modi urged people to visit 15 domestic tourist destinations in India by 2022.
Statue of Sardar Vallabhbhai Patel, also known as ‘Statue of Unity’, was inaugurated in October 2018. It is the highest standing statue in the world at a height of 182 metre. It is expected to boost the tourism sector in the country and put it on the world tourism map. Government of India is working to achieve one% share in world's international tourist arrivals by 2020 and 2% share by 2025. Under Budget 2020-21, the Government of India has allotted Rs. 1,200 crore (US$ 171.70 million) for development of tourist circuits under Swadesh Darshan for eight Northeast states. Under Budget 2020-21, the Government of India has allotted Rs. 207.55 crore (US$ 29.70 million) for development of tourist circuits under PRASHAD scheme. In 2019, Government reduced GST on hotel rooms with tariffs of Rs. 1,001 (US$ 14.32) to Rs. 7,500 (US$ 107.31) per night to 12% and those above Rs. 7,501 (US$ 107.32) to 18% to increase India’s competitiveness as a tourism destination.
Achievements
Following are the achievements of the Government during 2019-20:
During 2019-20, an additional fund Rs. 1,854.67 crore (US$ 269.22 million) was sanctioned for new projects under the Swadesh Darshan scheme. Ministry of Tourism sanctioned 18 projects covering all the North Eastern States for Rs. 1,456 crore (US$ 211.35 million) to develop and promote of tourism in the region under Swadesh Darshan and PRASHAD schemes. Statue of Sardar Vallabhbhai Patel, also known as ‘State of Unity’, was inaugurated in October 2018 and the total revenue generated till November 2019 stood at Rs. 82.51 crore (US$ 11.81 million).
Road Ahead-
Staycation is seen as an emerging trend where people stay at luxurious hotels to revive themselves of stress in a peaceful getaway. To cater to such needs, major hotel chains such as Marriott International, IHG Hotels & Resorts and Oberoi hotels are introducing staycation offers were guests can choose from a host of curated experiences, within the hotel.
India’s travel and tourism industry has huge growth potential. The industry is also looking forward to the expansion of e-Visa scheme, which is expected to double the tourist inflow in India. India's travel and tourism industry has the potential to expand by 2.5% on the back of higher budgetary allocation and low cost healthcare facility according to a joint study conducted by Assocham and Yes Bank.