Boost Tourism Through Disruption

Context: India needs a comprehensive disruptive strategy to tap the potential of the tourism and hospitality sector.

Issues with Travel and Tourism industry

• Pandemic disruption: Adversely affected by the COVID-19 pandemic, saw severe job losses.
• Industry is fragmented, hindering the ability of the sector to achieve its full potential.
• Problem of end connectivity due to low infrastructure which negatively affects the experiences of international travellers.
• Low international arrivals which was visible in the Travel and Tourism Competitiveness Report of 2019. International arrivals have remained comparatively low, at around 9 to 10 million.
• Skill gaps among the workforce to perform jobs in the travel and tourism sector.
• Excessive reliance on disruptive technologies may create its own challenges.

Potential of tourism sector

• High employment elasticity: Planning Commission’s report states that an investment of Rs.1 million generates 78 jobs in tourism sector, unlike manufacturing & agriculture sector that, results in just 18 & 45 jobs.
• Flexible scale of operation: Can grow with smaller capital investments and without any industrial gestation period.
• Multiplier effects on income generation as growth in tourism sector is employment-intensive with less capital investment.
• Assists fourth industrial revolution that would bring major disruption in the job market.
  • India Skill Report, 2019, estimates the Indian workforce to increase to about 600 million by 2022 from the current 473 million in view of the fourth industrial revolution.
• Rising competitiveness: As per the Travel and Tourism Competitiveness Report of 2019, India improved its competitiveness in travel and tourism, from 65th position in 2013 and then the 40th position in 2017 and then the 34th position in 2019.

Policy initiatives to promote the tourism sector

• Pre-pandemic Initiatives: Providing e-visas, Global Media Campaigns, the Heritage Trail and the Paryatan Parv celebration, Start-up India initiative etc.
• Post-pandemic initiatives: Government of India recently announced financial support for more than 11,000 registered tourist guides/travel and tourism stakeholders.
  • First five lakh tourists will be issued visas free of charge after resumption of international travel.

Way Forward: Long-term measures through disruptive innovation strategy are need of the hour

• Innovative start-ups should be encouraged through government ideation and finance.
• Public-private partnership to improve infrastructure while ensuring the growth of medium and small and sized enterprises.
• Area needs to be nudged to embrace the digital revolution,
• Use of blockchain-based solutions: Eg. Blockchain ledger coupled with IOT devices for healthcare could have a positive impact on medical tourism.