Date: 03/03/2023

Relevance: GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment: Investment Models.

Key Phrases: Tourism, Employment, Labour, Trade, Technology, Economic Survey, National Tourism Policy, Medical Tourism, Wellness Tourism, Public-Private Partnership, Metaverse.

Context:

• Despite possessing a vast array of tourist destinations that include picturesque landscapes and heritage sites, India's tourism potential remains largely untapped.
• As a sector that heavily relies on labor, tourism has the potential to create significant employment opportunities that are of high quality.

Key Highlights:

• The 'Report on Working Group on Tourism' (2011) projected that the travel and tourism industry in India would create 780 jobs per ₹1 crore of investment. In comparison, the manufacturing sector was expected to generate 450 jobs with a similar investment.
• The Prime Minister acknowledged the significant role of the tourism sector in India's growth narrative.
  • He encouraged states to prioritize tourism during the 7th Governing Council meeting of NITI Aayog.
• The Prime Minister emphasized the promotion of the 3Ts - trade, tourism, and technology - to support the growth of the tourism industry.

Increasing the Footfall:

• There is significant potential to increase the number of international tourists visiting India, as evidenced in the Economic Survey 2021-22.
  • Between 1990 and 2019, foreign tourist arrivals in India increased from 0.2 crore to only 1.1 crore.
  • While domestic tourist arrivals increased at a comparatively better rate, from around 6 crore to approximately 232 crore during the same period.
• India currently has a meager 1.2 percent share of international tourist arrivals, ranking 23rd globally in 2019.
  • The draft National Tourism Policy aims to make India one of the top 5 destinations in the world in terms of both international arrivals and international tourism receipts by 2030.
  • It also aims to make India the most sought destination in the world by 2047. However, concrete steps are required to make this vision a reality.
• To attract foreign tourists, the most effective strategy would be to focus on niche areas.
  • Medical tourism, for example, accounted for 6.4 percent of all foreign arrivals in India in 2019.
  • This sector has experienced significant growth due to the lower costs of tertiary healthcare and the relatively high quality of medical treatment in India compared to other countries.
• To capitalize on India's potential as a medical tourism destination, it is necessary to incentivize and establish clusters of hospitals that make it easier for foreign tourists to access medical services.
  • For example, a heart bypass surgery in India costs as little as $7,900, which is the lowest among other major medical tourism destinations like Thailand, Malaysia, Singapore, Turkey, and South Korea.
  • In order to attract more international tourists, India must increase investment and leverage public-private partnership models in healthcare at a faster pace.

Enhancing the Experience:

• While India's appeal as a tourist destination is undeniable, the emphasis must be placed on easing access and enhancing the experience.
  • Simplifying the process of registering online with the Foreigner Regional Registration Office (FRRO) is crucial.
  • Establishing FRRO help-desks at major Indian airports and hospitals will provide visitors with the necessary information to complete the process online, making it more convenient.
• Another way to improve the experience for medical tourists is to enhance the number of annual visits allowed under an e-medical visa.
  • Currently, e-medical visa-holders are allowed three repeat visits during their one-year visa period, which may not be sufficient for patients who require follow-up/post-operative care.
  • Increasing the number of accompanying persons with e-medical visa-holders from two to up to four, as has been done in countries like Malaysia, can also be considered.
• The increasing importance of digital tourism, particularly emerging technologies like the metaverse, should also be taken into account.
  • The metaverse has the potential to transform the tourist experience and engagement at destinations.
  • Travellers can experience 3D hotel tours before confirming their booking, which allows them to get a better idea of facilities, room size, decor, and amenities.
  • This can save time and avoid unnecessary hassles, enriching the overall tourist experience.

Conclusion:

• To enable entrepreneurs to take credit on a priority basis, tourism infrastructure projects such as hotels, resorts, equipment, and parks with a project cost of more than ₹1 crore should be notified as ‘infrastructure’.
• Additionally, even small steps aimed at facilitating ease of travel, such as creating common passes to visit multiple heritage sites, providing foreign exchange counters at each tourist site, and operating tourist information centres professionally, can play a significant role in increasing tourist traffic in India.
• The government's intent to boost the tourism sector is laudable, but it needs to be complemented by a concrete roadmap and an effective implementation strategy.
  • This can enable the tourism sector to contribute significantly in generating employment and intensive growth in the country.

Source: The Hindu BL

Mains Question:

Q. What steps should be taken to turn the vision of making India one of the top 5 destinations in the world in terms of international tourism arrivals and receipts by 2030? Discuss (150 words).