India travel, tourism market to grow at CAGR 7% till 2021: TechSci Research

Growing medical, wellness and adventure tourism; improvement in connectivity to and from India; and rising middle class population base to drive India travel & tourism market during the forecast period.

According to TechSci Research report, ‘India Travel & Tourism Market, By Type, By Purpose of Visit, By Tourist Profile, By Average Duration of Stay, By Mode of Travel, Competition Forecast and Opportunities, 2011 – 2021′, travel & tourism market in India is projected to grow at a CAGR of over 7%, during 2016-2021, on account of increasing foreign tourist footfall in the country, robust medical infrastructure development, rising government initiatives and diversified service offerings by major companies.

As per the Ministry of Tourism, in 2015, foreign tourist footfall in India was over 8 million, which was 4.5% higher than the previous year and this is projected to increase through 2017, on account of rising infrastructural developments, increasing trend towards recreational tourism and growing regional and central government’s focus on promoting tourism sector. Over 1,430 million domestic tourists visited different states/union territories of India in 2015.

South region dominated India travel & tourism market in 2015 and the region is anticipated to continue dominating the market through 2021, on account of growing domestic and foreign tourist footfall, and increasing number of religious and leisure trips to the region. Moreover, south region of the country is also emerging as a key hub for medical and wellness tourism.

Leisure & recreation segment dominated India travel & tourism market in 2015, on the back of increasing number of people visiting families and friends for various occasions and tour operators offering cheap packages. Medical tourism is a small, but a robustly growing segment in India travel & tourism market.

Fast growth in India medical travel & tourism market can be attributed to availability of cost-effective and high medical treatment procedures at internationally renowned facilities.

“Indian travel & tourism industry has emerged as a key driver for the growth of the services sector in India. Travel & tourism is also a large employment generator besides serving as a significant source of generating foreign exchange for the country.

Increasing disposable income along with rising middle class has continued to support growth of domestic and outbound tourism in the country. Furthermore, Ministry of Tourism in India has been proactively engaged in designing national policies for promotion and development of travel & tourism sector in the country.

The Ministry is also collaborating with other stakeholders in the industry including state governments, various central ministries/agencies, representatives of the private sector and union territories.

Of late, with advent of online booking for travel services, increasing number of people prefer to use internet to book flight tickets, hotel accommodation, etc., instead traditional travel agents, as it offers convenience and ability to compare various prices and deals.”, said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.

“India Travel & Tourism Market, By Type, By Purpose of Visit, By Tourist Profile, By Average Duration of Stay, By Mode of Travel, Competition Forecast and Opportunities, 2011 – 2021” has evaluated the future growth potential of travel & tourism market in India and provides statistics and information on market structure, size, share and future growth.

The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges and opportunities present in India travel & tourism market.

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Source: TechSci