Tourism Sector in India – Explained ( UPSC Notes)

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Government Initiatives  

  • Heritage cities
  • 100% centrally funded
  • Religous cities
  • Gaya in both
  • Theme based tourism circuits
  • Ramayana circuit, Krishna, Buddhist, Himalayas Wildlife
  • Advantage Health Care India – International Summit
  • The duration has been extended to 60 days
  • Visa on Arrival , PIO card

Types of Tourism

  • Sight Seeing Tourism – India Gate
  • Eco Tourism ( also includes Wildlife tourism )
  • Business Tourism
  • Religious Tourism – Most prominent in India

Medical Tourism

  • Educational Tourism
  • Rural Tourism
  • Slum Tourism 😛
  • The number of foreign tourist arrivals in 2014 is 8 million (up from 5 mm in 2009-10),
  • World average 10%
  • employment.
  • Finally, compared to other modern sectors, a higher proportion of tourism benefits (jobs, petty trade opportunities) accrue to women . Internationally 7 0% jobs in tourism to women
  • 20 billion dollars
  • 2nd Largest
  • India moves up 12 places at 40th
  • Largest leap by any country in top 50
  • Reasons – Schengen, Temperature, Infra, Safety
  • Government would need to adopt a ‘ pro-poor tourism ’ approach aimed at increasing the net benefits that flow to the poor from tourism. It includes expansion of local employment through commitment to creation of local jobs and training of locals for employment; expansion of business opportunities for small and micro businesses 
  • The implementation of these strategies will involve d eveloping formal and informal links between all stakeholders and coordination across all levels of Government.
  • Infrastructure – Roads, Hotels, Parks
  • Human Resources – Guides, Female Guides
  • Security – Scarlet Keening
  • Environment – Manali, Climate Change
  • Extremism – Darjeeling
  • Lack of Awareness – Shortage of ICT connectivity , Inadequate focus on Spiti Valley in Himachal or Tribal tourism of Jharkahand
  • Health and Hygiene
  • IT connectivity
  • Prioritisation of Tourism

STEPS REQUIRED

  • Single national level smart cards for all tolls
  • Extension of E- Tourist window to 150 days instead of 60 currently ( Eco Survey )
  • National Cruise Strategy
  • Sustainable Tourism
  • Taking Locals into cohgnisance
  • Hotels, Roads
  • Internet and Awareness
  • And all the steps for above issues
  • To obtain healthcare
  • From Afghanistan, Ban in particular
  • But, also from Advanced west like US, UK due to cheap cost
  • Ayurveda tourism in Kerala
  • Driven mainly by private sector
  • 3 billion $
  • 2 lakh people every year

E-tourist VISA

  • Open to 150 countries now
  • Is Tourist Visa on Arrival Facility (TVoA) enabled by Electronic Authorisation
  • At 16 Indian airports
  • Progress- 3.5 lakh last year, largest from UK, then USA
  • Bottomline – Environment , People, Tourists
  • Manali – NGT Ban
  • Floods – Uttarakhand
  • Taj Mahal – Pollution
  • Kasaul – Drug Tourism
  • Sex Tourism
  • Revenue should stay with the tourists
  • Basic Infra
  • Points on Skill, Awareness,
  • Ministry of Tousim – Sustainable tourism Criteria of India

National Tourism Policy (Draft), 2011

Features  

  • B y 2017, to host 1% of global tourists (current 0.7%). This would require additional 400k hotel rooms and would create 25 mm jobs.     
  • To target 12 per cent annual growth in this sector in the Twelfth Five Year Plan.  

Cruise Shipping Policy, 2008    

Potential of Cruise Shipping  

  • Cruise Shipping refers to leisurely passenger shipping. It beneficial not only in tourism terms but also in promoting the handicrafts industry.  

  Features

  • It provides for better fiscal regime, better port and connectivity facilities and liberal immigration regime.  
  • A Steering Committee formed in 2010 envisaged developing 5 ports of Goa, Mumbai, Cochin, Chennai and Mangalore and including inland river cruising as LTC for government employees .  

 Tourism Initiatives for North East

  • Incentives are given to Central Government Employees to travel to NE.
  • 10% of Planned Tourism Expenditure reserved for NE.
  •  NE fairs and exhibitions will get 100% central finance assistance.   

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Tourism Sector in India – Explained, pointwise

  • 1 Introduction
  • 2 What is the current status of Tourism Sector in India?
  • 3 What are the driving factors of Tourism Sector in India?
  • 4 What are the challenges faced by the Tourism Sector in India?
  • 5 What steps have been taken for the development of Tourism Sector in India?
  • 6 What more steps can be taken going ahead?
  • 7 Conclusion

Introduction

A three-day National Conference of Tourism Ministers of States was held for the first time in Dharmsala (Himachal Pradesh) recently. The purpose of the Conference was to discuss, debate, and deliberate on modes and mechanisms to develop tourism sector in India. The meeting came up with ‘ Dharamshala Declaration ‘. The Dharamshala Declaration aims to recognise India’s role in contributing towards global tourism as well as focus on recovery by also promoting domestic tourism, which has been overlooked for long. India is a vast country with huge geographical, climatic, landscape, wildlife, heritage and cultural diversity. As such India has huge tourism potential. Yet this potential has remained under-utilized. In this context, the Ministry of Tourism has undertaken several initiatives to boost tourism in India.

What is the current status of Tourism Sector in India?

Before the onset of the pandemic, the contribution of tourism sector to India’s GDP had reached ~US$ 250 billion in 2018. However, the contribution had fallen to US$ 122 billion in 2020 due to pandemic. The share of Tourism to GDP has hovered around ~5-6%. With post-pandemic recovery, the tourism industry is  expected to reach US$ 512 billion by 2028.

Tourism Sector in India contribution UPSC

Source: IBEF

Tourism Sector is the third-largest foreign exchange earner for the country in 2019.  The foreign exchange earnings between 2016 and 2019 increased at a CAGR of 7%, but dipped in 2020 due to the COVID-19 pandemic. By 2028, Indian tourism and hospitality is expected to earn US$ 50.9 billion as visitor exports compared with US$ 28.9 billion in 2018. Foreign Tourist arrivals had reached 10.9 million in 2019, before falling to 2.7 million in 2020 due to the pandemic.

India was ranked 34th in the Travel & Tourism Competitiveness Report 2019 published by the World Economic Forum. The Economic Impact 2019 Report published by the World Tourism and Travel Council (WTTC) has noted that between 2014-19, India witnessed the strongest growth in the number of jobs created (6.36 million), followed by China (5.47 million) and the Philippines (2.53 million).

In 2020, the Indian tourism sector accounted for 39 million jobs, which was 8% of the total employment in the country. By 2029, it is expected to account for about 53 million jobs. Tourism sector provides diverse opportunities for jobs like in hospitality/hotels/accommodation, transportation, tour guides, travel operations etc.

Components of Tourism Sector UPSC

Source: IBEF. Components of Tourism Sector

What are the driving factors of Tourism Sector in India?

The Tourism Sector in India is driven by various factors like diverse attractions, robust demand (like for medical tourism) and attractive opportunities.

Drivers of Tourism Sector in India

In addition to the above, rapidly expanding India economy is providing huge opportunities for business tourism. According to the World Bank, India has overtaken Japan to become the world‟s third  largest  economy in  terms  of purchasing power parity (PPP). India holds a 6.4% share of global GDP on a PPP basis. Because of the economic growth, foreign players are interested to establish their operational facilities in the country. Domestic investors have also made huge investments to expand their business. Tourism industry gets benefited from the growing economic environment and investment made by  both  domestic and foreign investors. The  country‟s growing  economic environment acts as one of the major influential driver for tourism growth and development of the country.

What are the challenges faced by the Tourism Sector in India?

Awareness : Despite promotional campaigns by the Government, the awareness regarding India as a tourist destination remains low. Even among domestic tourists, the choice is limited to few popular destinations which remain overcrowded, while many other potential places receive low footfalls of tourists. The information portals and centres are poorly managed. There is lack of promotional campaigns in foreign countries. The absence of online branding campaigns fail to provide information to attract tourists.

Infrastructure and Safety : Many popular destinations lack air connectivity, especially in the hilly regions. Moreover, there is lack of proper hygienic facilities in may places. Lack of cleanliness is off-putting to many tourists. In addition there are safety concerns especially among foreign visitors because of few cases of harassment. Poor experience of some tourists leads to bad word-of-mouth information impacting perception of potential tourists.

Communication : Many tourists face communication problem while in India. This makes them dependent on tourist guides or travel operators to curate their travel in India.

Lack of Skilled Manpower : There is dearth of skilled manpower especially multi-lingual tour guides or hotel staff. The sector is dominated by small unorganized players who can’t spend on skilling their employees or sensitising them to cultural values of the foreign tourists. This impacts tourist experience.

Visa Process : The Government had started the e-visa process (online) which has led to increase in foreign tourists. However, the visa-on-arrival facility is limited to very few countries, limiting foreign tourists.

Currency Fluctuations : Another issue is the fluctuations in the currency exchange rates. The inability to know the value of a currency means that long-range tourism prices are especially hard to predict and the fallout from this monetary instability is already impacting multiple tourism support systems.

Although the coronavirus crisis has short-term destructive effects on the tourism industry, it is challenging the practices of the tourism industry and is drawing attention to a succession of issues like poor risk management in the travel industry, viral globalization, and travel of diseases with tourists to cross borders.

What steps have been taken for the development of Tourism Sector in India?

Infrastructure : The Government has been increasing investments in strengthening of the country’s road and rail networks and promoting port development is a significant driver for the growth of the Tourism sector. The Adarsh Station Scheme is helping modernize railway stations, while the Regional Connectivity Scheme – UDAN ( Ude Desh ka Aam Nagrik ), is helping make air travel more economical and widespread to hitherto unserved routes. The Swadesh Darshan and PRASHAD schemes aim to stimulate growth in niche tourism segments such as religious, heritage, wellness, medical, adventure, MICE, wildlife etc. Under the Swadesh Darshan Scheme, the Government has launched several theme based circuits like Buddhist circuit which covers destinations associated with the life of Lord Buddha.

Promotional Campaign : Promotional activities such as the Incredible India 2.0 campaign focuses on niche tourism products including yoga, wellness, luxury, cuisine wildlife among others. “ Find the Incredible You ” Campaign focuses on the promotion of niche tourism products of the Country on digital and social media.

Information Helpline : The government has introduced the concept of e-tourist and e-medical visas which has helped increase inbound tourists to the country. Additional initiatives such as Atithi Devo Bhava , a 24×7 multi-lingual Tourist Helpline, among others have helped improve the safety and security of tourists. On a pilot basis, an ‘ Incredible India Helpline ’ has been set up to guide the tourists.

Safety : The Ministry of Tourism has adopted a code of conduct for safe tourism, which contains a set of guidelines to encourage tourism activities to be undertaken with respect to basic rights like dignity, and  safety of both tourists and local residents, in particular women and children.

Investment : The government allows 100% Foreign Direct Investment in the Travel and Tourism sector through the automatic route to increase investments across the sector. More recently, the GST rate cut on hotel room tariffs across the board has been a positive move for the industry and is expected to boost the sector’s competitiveness globally.

Cleanliness and Hygiene : Major cleanliness campaign has been launched under the Swachh Bharat movement for protecting and preserving the sanctity of monuments of national heritage . The Ministry of Tourism has also launched awareness campaign to ensure cleanliness of surroundings and help create a Swachh Bharat, Swachh Smarak .

Assistance to States : Financial assistance to states, including places of religious importance, for various tourism projects in consultation with them subject to availability of funds, inter-se priority, liquidation of pending utilisation certificates and adherence to the scheme guidelines.

Digital Database : In September 2021, the Government launched NIDHI 2.0 (National Integrated Database of Hospitality Industry), a scheme which will maintain a hospitality database comprising accommodation units, travel agents, tour operators and others. NIDHI 2.0 will facilitate digitalisation of the tourism sector by encouraging hotels to register themselves on the platform.

Skilling : The Ministry of Tourism has introduced the Incredible India Tourist Facilitator (IITF) and Incredible India Tourist Guide (IITG) Certification Programme to create an online learning platform of well-trained tourist facilitators and guides across the country.

The Ministry of Tourism had launched 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 was focused on effective implementation of guidelines/SOPs issued with reference to COVID-19 for safe operations of hotels, restaurants, and other units.

What more steps can be taken going ahead?

First , The government should continue to promote India’s diversity and rich heritage to re-establish its position as a tourist paradise. The promotional campaigns should target both domestic and foreign tourists. Similarly, the extent of theme-based tourist circuits can be expanded.

Second , the skilling initiatives should be scaled-up . Tourism sector has a potential to provide lot of livelihood opportunities in smaller cities/towns (below tier-2 level). It can help address the issue of jobless growth.

Third , there is need to balance the promotion of tourism with safeguarding the physical, social, and cultural environment in the destination areas. The government should also promote green and sustainable tourism to tackle issues relating to water crisis, pollution, waste management, etc.

Fourth , the Government should further reform the tourist visa norms and processes to facilitate tourism. The Government should also explore the possibility of expanding the visa-on-arrival facility.

Fifth , the focus should also be on supporting and promoting the emerging segments of tourism.

Emerging Segments of Tourism

Source: IBEF. Emerging Segments of Tourism.

The tourism sector in India is gradually recovering from the impact of the pandemic. Even during the pandemic, the sector had shown resilience by adapting its operations to ensure safe practices and social distancing. The sector has huge untapped potential in India. The multiplier effect associated with the tourism sector can help raise the income levels and ensure inclusive growth. A burgeoning tourism industry can prove to be vital in ensuring India’s transition to a high income economy.

Syllabus : GS III, Indian Economy and issues related to growth.

Source : The Hindu , Hindustan Times , IBEF

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Tourism (UPSC Notes)

Last Updated: May 2023 (Tourism (UPSC Notes))

Table of Contents

This article deals with ‘ Tourism (UPSC Notes). ’ This is part of our series on ‘Economics’ which is an important pillar of the GS-3 syllabus. For more articles, you can  click here .

Introduction

  • India is ranked 10th in terms of t tourism’s total contribution to GDP, contributing 4.7% to total GDP. 
  • It is a labor-intensive sector, accounting for 39 million jobs (2020) and significantly impacts trade, investment, social inclusion, etc.  
  • But India has not been able to exploit the potential of tourism to full capacity (corroborated by India vs. USA)

Tourism (UPSC Notes)

Hence, India has vast untapped potential in the tourism sector

Potential of Tourism in India

  • Large Diversity in Landscape:  India’s landscape can cater to almost every type of traveller, whether they are seeking adventure, wellness, culture and heritage or cuisines. 
  • Ancient Civilisation:  India is an ancient civilization, and a number of historical places and buildings have tremendous potential to draw tourists. E.g., Hampi, Khajuraho, Agra, Delhi, Madurai etc. 
  • Religious Tourism:  India is home to a large number of religions. Hinduism, Sikhism and Buddhism took birth here.  
  • Huge Labour Available:  The availability of a huge labour force, both skilled and unskilled, can act as a catalyst. 
  • Medical Tourism:  India can provide specialized treatments at the cost of 1/4th that of developed countries. Target countries include Central Asia, Neighbours like Bangladesh, Sri Lanka etc. 
  • MICE (Meeting, Incentive, Conferences & Exhibitions):  It is a specialized niche of business tourism. Indian MICE Tourism potential is pegged at 25,000 crore due to Places like Pragati Maidan Delhi (for exhibition) and institutes like IITs, AIIMS, IIMs etc., for International Conferences.

Reasons for untapped Tourism Potential

  • The tourism industry is  closely integrated with several other industries  like the hotel industry, accommodation, aviation, railway, roadways, healthcare, entertainment etc. The combined weaknesses of all the sectors make Indian Tourism more vulnerable.  
  • Negative perceptions,  such as India being unsafe for female foreign tourists and lack of hygiene, negatively impact Indian tourism.
  • Government is unable to make schemes to attract tourists like Buddhist Tourists who have cultural ties with India. 
  • No advertisement campaigns like Malaysian and Singapore Tourism are run in foreign countries.
  • Lack of automated immigration procedures like Visa on Arrival.
  • Limited professionalism  in people involved in the tourism sector, like tourist guides
  • Insurgency in potential Tourist Spots : Tourist places like Kashmir and North East are hit by insurgency, impacting tourism potential. 

Schemes to Promote Tourism in India

In the last two years, the Ministry of Tourism has taken many steps to make India an attractive destination.

  • PRASAD Scheme : To develop  tourism infrastructure  in and around  famous religious and pilgrimage cities. (12  cities  Ajmer ,  Amritsar , Amravati, Dwarka, Gaya, Kamakhaya, Kancheepuram, Kedarnath, Mathura, Patna, Puri, Varanasi and Velankanni) 
  • HRIDAY : For holistic development of Heritage cities  (12 identified Cities, namely,  Ajmer , Amaravati,  Amritsar , Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and Warangal.)
  • Swadesh Darshan Scheme :   It aims to develop a theme-based  tourist circuit . These circuits include North-East India Circuit,  Buddhist Circuit , Himalayan Circuit, Coastal Circuit,  Krishna Circuit ,  Desert Circuit , Tribal Circuit, Eco Circuit, Wildlife Circuit, Rural Circuit, Spiritual Circuit,  Ramayana Circuit  and Heritage Circuit. 
  • Adopt a Heritage :  Corporate Houses will adopt a Heritage and develop their infrastructure . E.g.,  Dalmia Group  adopted  Red Fort  for ₹ 25 Crore, and they will provide basic amenities and develop infrastructure. 
  • E-visa process simplified:  Nationals of 161 countries have been allowed visits for business and medical treatment. Additionally, a special visa category called ‘ Medical Visa’ & ‘Medical Attendant Visa ‘ has been created to ease the entry of medical tourists into India 
  • The government is building a large number of museums to showcase Indian heritage and promote tourism.  
  • Incredible India Tourist Helpline : Multilingual helpline has been launched to provide assistance and information to tourists in 12 languages of the world, including Hindi & English 
  • 100 % FDI  allowed in hotels, resorts & recreational activities 
  • Revamped schemes like  Hunar se Ruzgar to give training to travel guides  and Institutes of Hotel Management have been opened. 
  • Rajasthan has passed a bill under which misbehaviour with tourists has been made a cognizable offence. It is to prevent the touts from forcing tourists to buy things at exorbitant prices or fraudulating the tourists, as it impacts tourism negatively.

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Tourism: Can this be the next big thing for India | UPSC Mains Essay Preparation PDF Download

Introduction.

India’s tourism growth has been exponential in the last decade. India attracts domestic and international tourists as a preferred destination. Tourism lets the international tourists understand and experience firsthand India’s cultural diversity. Official estimates paint a rosy picture of the Indian tourism industry. It has outperformed the global tourism industry in the context of growth in the volume of foreign tourists, including the corresponding revenue growth. The growth in Indian tourism has been commensurate with the growth in the Indian economy. The economic upsurge is perhaps the main reason for the growth in tourism in India. Nonetheless, the infrastructural constraint must also be admitted. If the current growth is to be sustained, the government needs to invest in infrastructure projects like hotels, transport, lodging and accommodation, improved roads, healthcare and hygiene, internet connectivity, etc. With the aim of sustaining the growth, the industry has, on the other hand, investing in new technology like CRM tools and state-of-the-art security systems.

Segments within Tourism

There are several segments within tourism; medical tourism, cultural heritage tourism, and eco-tourism, to name a few. India’s rich and diverse cultural heritage attracts millions of tourists each year to its monumental attractions led by the Taj. The traditional Indian way of life, simple and calm, appeals in a big way. India is also one of the popular eco-tourism destinations in the world, promoting conservation of nature, responsible travel, and sustainable environmental growth with minimum destruction. Its luxuriant flora and fauna and breathtaking biodiversity heritage from the wetlands in the Himalayan region to the natural caves in the Khasi and Garo hills, the backwaters of Kerala, and shifting sand dunes of Thar Desert draw tourists and academics from every corner of the world. Adventure tourism gives the Youth the thrill of trekking on challenging terrain, while Pilgrimage tourism explores the origins of religion and spirituality. Medical Tourism is one of the fastest growing segments within tourism. India has successfully leveraged its competitive edge in comparison with the other countries. India has the advantage of a strong pool of skilled doctors backed by a sound medical infrastructure. The quality of private healthcare here is world class, and the treatment and procedures cost-effective. Overseas patients flock to India for common treatments that India can offer at a competitive price. The most common of these include bypass and other heart surgery, hip and knee transplant, cosmetic surgery, and dental care, among others. India’s traditional therapies, including yoga and Ayurveda, are also popular rejuvenation therapies attracting foreign tourists.

Economic Importance of Tourism

The economics of tourism in India is mind boggling. The World Travel & Tourism Council calculated that tourism generated 8.31 lakh crore (US$120 billion) or 6.3% of the nation’s GDP in 2015 and supported 37.315 million jobs, 8.7% of its total employment. The sector is predicted to grow at an average annual rate of 7.5% to 18.36 lakh crore (US$270 billion) by 2025 (7.2% of GDP). In October 2015, India’s medical tourism sector was estimated to be worth US$3 billion. It is projected to grow to $7–8 billion by 2020. Domestic tourism has witnessed an exponential rise from 2000 to over 1.85 billion in 2018 and growing.

Tourism Challenges and Solutions The biggest challenge is to enhance nationwide tourism infrastructure. Upgrading the existing hotels and building many more with a focus on quality and target groups is essential. Cities that attract a large number of international tourists should be upgraded with world-class amenities, while participation of residents and the local community should be promoted in rural tourism. Another challenge is that ecotourism is fragile, and without proper regulations, it can unsettle the harmony between man and nature. There is an urgent need to develop human resources to meet the needs of the tourism and hospitality industry, both quantitatively and qualitatively. This would also check the fleecing of unsuspecting tourists by tricksters. More hotel management institutes should be established and more HM graduates absorbed in the sector. A pan India vocational training system should be established to harness local drop-outs and semi-literate youth in tourist hotspots to employ them as official tourist guides and other related profiles. Employment and rising incomes will also curb crimes against tourists, a problem that takes away a little too many footfalls in India and hurts the image of the country as well. Publicity and marketing is another area that needs re-thinking. “Incredible India!” campaign seems to have outlived its utility, for even Vietnam and Indonesia have a greater share in international tourist arrivals than India. We need to think beyond traditional means and emphasize rural tourism and adventure tourism, taking advantage of thrifty and extravagant classes. Lack of cleanliness is a major problem. Insanitary conditions and a dirty environment drive tourists away. Swachh Bharat Mission is a good step in this regard. World class amenities at major Ghats and cleaning of major rivers Ganga, Yamuna, etc., will definitely increase footfalls in the cities they flow by, namely Varanasi, Delhi, Agra, and so on.

National Tourism Policy

Recognizing these problems, the Government of India has drafted National Tourism Policy, 2015. More than 50% of the Ministry of Tourism’s expenditure on Plan schemes is incurred for the development of tourism infrastructure at various tourist destinations and circuits, e.g., PRASAD scheme for pilgrimage tourism augmentation, development of Buddhist circuit, etc. Such schemes need to be converged with other related schemes. For example, efforts of PRASAD could be converged with that of the HRIDAY scheme of the Ministry of Urban Development for heritage city augmentation. E-recognition of travel service providers such as travel agents, tour operators, etc., bodes well for the tourism trade. Market research is equally important for policy-makers for planning/ policy formulation and monitoring the progress of schemes and evaluating their impact. Cooperation with international organizations such as the United Nations World Tourism Organization (UNWTO), Association of Southeast Asian Nations (ASEAN), and South Asian Association for Regional Cooperation (SAARC) could further help increase international tourist arrivals and receipts. On this particular front, the easing of the Indian tourist visa regime has been a positive development.

India’s Tourism Competitiveness

India seems to be heading right despite challenges. It has shown the maximum growth in global tourism, jumping from the 40th rank in 2017 to 34th among 140, the only lower-middle-income nation among the top 35, in the Travel and Tourism Competitiveness Report 2019 published by the World Economic Forum. It shows India also greatly improved its business environment (89th to 39th), overall T&T policy and enabling conditions (79th to 69th), infrastructure (58th to 55th); and information and communications technology (ICT) readiness (112th to 105th),

Thus, tourism has the potential to transform the economy. With the right policies, requisite budgetary allocation systematised planning, and targeted action, it can indeed prove to be the next big thing for India.

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United Nations World Tourism Organization (UNWTO) - UPSC Notes

The United Nations World Tourism Organization (UNWTO) is an important organization under the United Nations. Such international bodies and programmes play an important role in the IAS exam . In this article, you can read all about the United Nations World Tourism Organization.

International organizations and groupings are an important part of the International Relations section of the General Studies paper-2 in the UPSC Syllabus . 

UNWTO UPSC Notes:- Download PDF Here

United Nations World Tourism Organization – Roles & Responsibilities

The UNWTO is a specialized agency of the United Nations that works in the domain of tourism. Its roles and responsibilities are mentioned below:

  • Promote sustainable,  responsible and universally accessible tourism.
  • Special attention towards the development of sustainable tourism in Small Island Developing States (SIDS).
  • Promoting the potential of tourism in fighting poverty.
  • Successfully implemented Collaborative Actions for Sustainable Tourism (COAST), a tourism project in Africa.
  • Work towards mainstreaming tourism on the international agenda and championing the tourism sector as a driver of economic and social development.
  • Improving competitiveness in the tourism industry worldwide.
  • Work towards aiding the tourism industry contribute towards the eradication of poverty.

The World Tourism Organization is headed by its Secretary-General.

UPSC Prelims Facts - UNWTO

UNWTO and India

India became a member of the UNWTO in 1975. The nodal agency in India that works with the UNWTO is the Ministry of Tourism. 

The UNWTO leads the World Tourism Day celebrations every year on 27 September. In 2019, New Delhi,  India was selected as the host for the celebrations. The theme for the 2019 World Tourism Day was “Tourism and Jobs: A Better Future for All”.

United Nations World Tourism Organization – World Tourism Rankings

The United World Tourism Organization publishes the World Tourism Rankings 3 times in a year. The rankings are assigned by taking into account various indicators like the number of international visitor arrivals, expenditures incurred by outbound travellers, revenue generated through inbound tourism. The countries ranked in the top 10 of World Tourism Rankings as per 2018 are listed below.

  • United States
  • United Kingdom

Get a list of important reports by international organizations at the linked article.

Tourism in India

The tourism sector in India is an important component of India’s growth and economy. Some of the important facts concerning tourism in India are listed below.

  • Foreign Tourist Arrivals (FTAs) in India stood at 10.89 million in 2019.
  • Tourism in India generated revenue worth $ 240 billion in 2018.
  • The share of tourism in the Indian GDP was at 9.2% in 2018.
  • Tourism supported more than 42 million jobs.
  • The tourism sector generated 8.1% of India’s total employment.
  • By 2028, some studies have indicated that tourism in India is expected to grow by approximately 7% and it is expected to be a $ 450 billion industry.
  • As per a report by Travel and Tourism Competitiveness Report, India is ranked at the 34th position among its member countries. 
  • Under the Swadesh Darshan scheme, 77 projects have been sanctioned. Read more on the Swadesh Darshan scheme in PIB dated 24 Dec 2019 .

Also read UNESCO’s Intangible Cultural Heritages in India. 

The Top 5 states/UTs that received the highest number of Foreign Tourists as per 2017 are listed below.

  • Maharashtra
  • Uttar Pradesh

The Top 5 states that received the highest number of Domestic Tourists as per 2017 are listed below.

  • Andhra Pradesh

The Ministry of Tourism is working on improving tourism in the following niche areas:

  • Medical Tourism
  • Eco-tourism
  • Rural Tourism

As per 2018, the highest number of foreign tourists visiting India are from the following countries.

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Medical Tourism in India

Last updated on January 14, 2023 by ClearIAS Team

medical tourism in India

Medical tourism is described as any activity that involves a foreign visitor traveling and spending at least one night at the destination to rejuvenate, restore, or maintain health through medical intervention. Since the last decade of the 20th century, India has emerged as a global leader in the medical tourism sector. Read here to learn about the growth of medical tourism in India.

Over the past decade, India has gained a reputation for providing high-quality medical service at low costs to medical tourists traveling from across the globe.

However, with the travel bans during the covid-19 pandemic , the influx of medical tourists had dipped. According to the Tourism Ministry, India registered a negative growth of 79.4% in 2020.

Although, the situation looks positive once more owing to the efforts made to handle the pandemic situation. Market insights suggest the demand forecast to increase at a robust 19 % CAGR in 2022.

Table of Contents

Medical tourism in India

India’s healthcare industry offers a combination of both modern and traditional forms of medicine which sets the country apart from others.

  • First, it has a set of world-class doctors and hospitals that provide treatment at fractional rates when compared to other countries.
  • Secondly, India’s systems of medicine: AYUSH i.e., Ayurveda, Yoga, Panchakarma, Rejuvenation Therapy, etc, which are the most ancient forms of medicine, are now gaining immense popularity globally.

The government also recently announced plans to launch an AYUSH Mark which is a mark to provide credibility to AYUSH products in India and promote India’s medical tourism sector.

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Additionally, the other medical services and facilities are also backed by the World Health Organisation (WHO) and the US Food and Drug Administration (US FDA).

India’s healthcare industry has advanced significantly over the past 30 years, as seen by the notable accomplishments it has made.

  • One of the industries that have contributed the most to revenue and are expanding quickly is healthcare.
  • Both public and private providers support the healthcare industry. Over the past few years, national health policies have been crucial in establishing a more inclusive healthcare system to achieve structured Universal Health Coverage (UHC).
  • In addition, India provides less expensive treatment alternatives than the US and the UK without sacrificing the standard of healthcare. About one-fourth, less is spent on therapy in India than it is in the United States.

In terms of alternate medical treatment, the Indian medical treatment systems of yoga, ayurveda, rejuvenation therapy, and panchakarma are among the most ancient methods of medical treatment in the world.

The southern state of Kerala has developed medical tourism services as one of its core products for promoting tourism in the region.

Based on the Medical Tourism Index 2020-21, India is ranked 10th out of the top 46 countries, 12th out of the world’s top 20 wellness tourism markets, and 5th out of 10 wellness tourism destinations in Asia-Pacific.

  • India boasts 39 Joint Commission International (JCI) accredited and 657 National Accreditation Board for Hospitals & Healthcare Providers (NABH) accredited hospitals.

India holds an advantage as a medical tourism destination due to the following factors:

  • Most of the doctors and surgeons at Indian hospitals are trained or have worked at some of the medical institutions in the US, Europe, or other developed nations.
  • Most doctors and nurses are fluent in English.
  • Top-of-the-line medical and diagnostic equipment from global international conglomerates is available at many Indian hospitals.
  • Indian nurses are among the best in the world. Nearly 1000 recognized nurses-training centers in India, mostly attached to teaching hospitals, graduate nearly 10,000 nurses annually.
  • Even the most budget-conscious traveler can afford first-rate service and luxury amenities

Most of the tourists are from Asian or African countries such as Sri Lanka, Bangladesh, Nepal, Maldives, Indonesia, and Kenya, among others.

Chennai, Mumbai, New Delhi, Ahmedabad, and Bengaluru are the top 5 medical tourism destinations in India.

Wellness tourism

Wellness Tourism includes travel for a less stressful lifestyle, promoting a healthier, and finding balance in one’s life.

Ayurveda, Yoga, meditation, Panchakarma, and Rejuvenation Therapy are among the most ancient systems of medical treatment in India and the best way to promote Wellness Tourism.

The Ministry of Tourism has drafted guidelines for wellness tourism. These guidelines address issues regarding making available quality publicity material, training and capacity building for the service providers, participation in international & domestic Wellness related events, etc.

Mushrooming of wellness centers in the country has given rise to the concern for quality service.

  • The Guideline for the Accreditation of wellness centers has been developed by National Board for Accreditation of Hospitals & Healthcare Services (NABH) in consultation with AYUSH and released during the workshop on wellness tourism organized by the Ministry of Tourism in 2011.
  • The Ministry of Tourism has also extended its Market Development Assistance (MDA) scheme to wellness tourism service providers including accredited wellness centers.

Impact of Covid-19 on medical tourism

Planned hospital operations decreased by as much as 80% during the state-wide lockdown in India caused by the new coronavirus outbreak, while unplanned systems decreased by 66%.

With the government of India’s assistance, the healthcare sector launched a comprehensive response strategy to combat the epidemic.

  • Specialized COVID-19 hospitals and isolation facilities were established, and resource mapping using technology was started.
  • The Indian government created several programs and used technology to combat the pandemic.
  • The Aarogya Setu app was utilized across the nation to improve contact tracing, syndromic mapping, and infection self-evaluation.
  • India not only met its own needs but also stepped up to help other nations during these difficult times.

Despite having several initiatives in place, the Medical Tourism industry of the country still faces some serious challenges.

  • One of the major challenges that India is facing is promoting and creating awareness about state-of-the-art facilities in India.
  • India is witnessing strong competition from destinations like Thailand, Malaysia, Singapore, Turkey, and South Korea with low-cost options.
  • In India, there is a lack of cohesiveness amongst the major players in the industry to come together and represent India on a world platform to acquire newer customers.
  • Apart from these, inconsistent fee structure and lack of transparency in billing to foreign patients, and absurdly high margins to trade to refer patients are some of the challenges.
  • Most Indian hospitals are also facing a lack of trust from foreign patients. The hospitals have observed poor hygiene awareness in medical attendants, unhygienic food handling, and lack of good hospitality services, heterogeneous pricing of services, and industry standards.

The government can play a vital part to upgrade the medical tourism sector. But the industry is facing the following problems which are caused by the governments. They are:

  • no regulations
  • taxation anomalies
  • bureaucratic roadblocks
  • no work on land reforms
  • lack of long-term investor-friendly policies
  • instability concerning terrorism and communal tensions.

On the part of insurance and allied services, the medical tourism industry in India is also facing some key bottlenecks. They are:

  • inadequate insurance cover
  • the underdeveloped insurance market in India
  • insurance frauds
  • overseas companies refusing reimbursement.

The following challenges, due to the infrastructural parts of the medical tourism sector in India, are:

  • lack of access
  • dearth of capital
  • Lack of community participation and awareness
  • Non-participation in the rural sector
  • lack of concern for sustainability
  • complex visa procedures
  • lack of good language translators
  • airport facilities still being inadequate

Government initiatives for medical tourism

The government has implemented various initiatives to overcome the challenges and push India’s rise as a hub of medical tourism through the promotion of ayurveda, yoga, and other Indian systems of medicine in the international market.

Heal India Initiative:

  • Heal in India is a new initiative developed under Ayushman Bharat Digital Mission in which there will be healthcare professionals, and hospital services to help patients seeking medical help in India.
  • With this type of initiative, Government aims at promoting Medical Tourism in India via Heal in India Portal.
  • It’s another Programme called Heal by India Government that aims to encourage Indian Health care Workers to go abroad and serve patients globally.

Market Development Assistance (MDA) scheme

  • MDA scheme offers financial assistance to approved tourism service providers.

Medical Visa provisions

  • Special provision has been made for tourists traveling to India for healthcare purposes.
  • The Ministry of Home Affairs has introduced a new category of visa, Medical Visa, that can be issued to foreigners traveling to India for healthcare reasons.

Setting up a feedback mechanism to obtain testimonials from tourists traveling to the country for medical purposes.

  • This ‘one-step’ portal would add convenience and provide credible information for medical tourists coming to India.

Way forward

To become the top-most medical travel destination, there is a need for significant investments into making the healthcare industry and equipment attractive for international patients.

  • Patients spend most of their time in guest houses and are prone to further infections from such places.
  • Thus, proper infrastructure and standardization need to be brought into the tourism industry and the nexus of guest house service providers urgently.
  • Another aspect that needs to be tapped into is the opportunity for selling Indian health insurance to foreigners. This can generate an additional $9 billion in patient inflow to India.

The government is pulling out all its aces to maximize the industry’s potential. The aim is to make India the No.1 Destination for Medical Tourism in the world, tripling its revenue to $13 billion within 4 years.

The government has also proposed an outlay of US$ 28.7 billion for health and well-being, which is 137% higher than the previous year’s budget outlay.

In the post-Covid world, the demand for the healthcare industry is bound to surge and there is a huge potential for India to realize and aggressively advance towards attracting medical tourists from other parts of the world including Europe and the Americas.

With the government making it their priority to make India the hub of medical tourism, the initiatives combined with the surging demand are sure to make India the center for all medical tourists in the future.

-Article written by Swathi Satish

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