(TAN): The World Travel & Tourism Council (WTTC) has revealed positive signs of recovery for the Indian Travel & Tourism sector with travellers heading back to its major cities, it said in a news release. The report, sponsored by Visa and researched in partnership with Oxford Economics, analysed key indicators such as Travel & Tourism’s contribution to GDP, employment and traveller spend.
The analysis of key indicators in Delhi and Mumbai shows that Travel & Tourism’s direct contribution to both cities’ GDP, jobs and visitor spending are all bouncing back to pre-pandemic levels.
The WTTC Cities Economic Impact Report shows that in 2019, the city’s Travel & Tourism sector contributed almost INR 362 billion (USD 4.38 billion) to Delhi’s economy and more than INR 250 billion to Mumbai’s.
[ALSO READ: Top five US destinations to add to your 2023 travel bucket list]
But the pandemic then had a damaging effect on India’s national economy as the border closed to overseas visitors.
In 2020, both the Indian cities’ Travel & Tourism sector’s GDP contribution dropped by almost half, falling to INR 190 billion in Delhi, and more than INR 135 billion crore in Mumbai.
Over the last two years, since the border reopened, both cities have witnessed a significant recovery.
In 2022, Delhi’s sector is expected to have grown to INR 32,400 crore, while Mumbai Travel & Tourism’s sector is forecast to be worth just under INR 225 billion, just 10% below 2019 levels.
[ALSO READ: Deal signed for 1160-room Fairmont Manchester San Diego; set to open in 2027]
Jobs on the rise
In 2019 there were more than 1 million people employed by the Travel & Tourism sector in Delhi. In 2020 this figure dropped to just over 660,000 (-35%). But in 2021, employment grew by more than 12% and is expected to have grown at a similar rate in 2022 to reach more than 840,000 in 2022.
In Mumbai, it’s a similar picture.
Before the pandemic, there were almost 360,000 travel & tourism jobs, but this number fell by over 100,000 to just over 240,000 in 2020. An 11% rise in 2021 saw the number increase to almost 270,000.
WTTC is forecasting a similar growth in 2022 to reach more than 300,000 jobs — just 15% below pre-pandemic levels.
[ALSO READ: Many tourists are ready to spend more for sustainable options, report finds]
Julia Simpson, WTTC President & CEO, said: “India is an increasingly popular global tourist destination and following more than two years of disruption, it’s great to see tourists are heading to the country once again. Our recent Economic Impact Research showed that we expect India to overtake Germany to become the world’s third most powerful Travel & Tourism market by 2032, and that its sector will outpace the overall economy every year for the next decade. But it’s crucial that the government and local decision makers in individual cities continue to recognise the economic importance of Travel & Tourism for the local and national economies, jobs and businesses.”
The report also shows that the tourism sector’s contribution to both the Indian cities will more than double over the next decade. According to the WTTC forecast, Delhi’s Travel & Tourism sector is expected to contribute almost INR 800 billion, while Mumbai’s will provide an annual boost of more than INR 540 billion by 2032.
Related posts:
India’s tourism sector could surpass pre-pandemic levels by 2022-end, says WTTC
Indonesia, Dubai & Rwanda Receive WTTC Safe Travels Stamp For Safety Protocols
Hotel business regaining momentum but long way from where we left in 2019: ITC Hotels’ Nakul Anand
Tourism in India: Signs of recovery with over 60 pc jump in overseas guest searches for Airbnb stays in the country
