Tourism & leisure - emerging market, emerging destination
Market Updates
- 5 million tourists visit India every year
- Healthcare tourism a growing trend
- Medical tourism to touch one million in 2012.
- Disposable income at a CAGR of 10.11%, driving domestic as well as outbound tourism
- Room rent accounts for 50% of revenue earned by the Indian hotel industry.
- Indian outbound tourist flow increasing at a CAGR of 12.79%.
- Tourist influx to India is growing at a rate of CAGR of 22.65% .
- India’s share of global tourism to reach 1.5% by 2012.
India’s Tourism & Leisure industry has shown great potential by its rapid expansion and growth over the last decade. While a lot of this growth can be attributed to the government’s support to develop tourism in India, other factors including the country’s rising income levels, various international events like sports and business conclaves, eco, adventure, spa and spirituality focused offerings are key contributors. Estimates confirm that if the total revenue from this sector is calculated, it is almost the third highest in the world and is even more than what an average global tourist spends.
Indian outbound travel is also emerging, and expected to grow even more in the near future. Low cost airlines, departing from India and carrying travelers to other continents, have resulted in more and more Indians traveling abroad for vacations. This is resulting in a CAGR growth rate of 12.79 percent.
Today, nearly 5 million tourists visit India every year, which is a relative low number for such big country. The Indian government is, therefore, focusing on improvements to tourism related infrastructure such as airports, hotels, radio-cabs and highways.
In sum, the future of tourism in India is bright and the development of quality infrastructure, services and products will play a key role in harnessing this industry’s full potential.