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TOURISM AND HOSPITALITY

FDI In Tourism & Hospitality Sectors

The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country.

India has moved 13 positions ahead from 65th to 52nd rank in Tourism and Travel Competitive Index (WEF); UNWTO Tourism Barometer (2016) currently ranks India at #40 in terms of global tourist footfalls. Tourism tends to encourage the development of multiple-use infrastructure including hotels, resorts & restaurants, transport infrastructure (aviation, roads, shipping & railways) and healthcare facilities. Five tourism mega economic zones were announced in the previous budget to attract global tourism players to India and also drive tourism sector's contribution to GDP.

100% FDI in tourism industries is allowed under automatic route.

100% FDI in tourism and hospitality sectors is allowed including tourism construction projects like the development of hotels, resorts, and recreational facilities.

 

  • 1

    7th largest tourism economy in the world

  • 2

    9th largest in cultural resources and business travel in the world

  • 3

    14.62 million jobs created by tourism in last 4 years (between 2014 – 2018)

India is the most digitally-advanced traveller nation in terms of digital tools being used for planning, booking and experiencing a journey

During 2018, foreign tourist arrivals (FTAs) in India stood at 10.56 million, achieving a growth rate of 5.20% year-on-year. FTAs in January 2019 stood at 1.10 million, up 5.30% compared to 1.05 million year-on-year

The travel & tourism sector in India accounted for 8% of the total employment opportunities generated in the country in 2017, providing employment to around 41.6 million people during the same year

International hotel chains are increasing their presence in the country, as it will account for around 47% share in the Tourism & Hospitality sector of India by 2020 & 50% by 2022

  • Incredible India campaign

    Extending international tourism business in India
  • E-Tourist VISA facility

    e-Tourist VISA, e-Business VISA & e-Medical VISA (currently, 163 countries have e-tourist visa facility)
  • Special Tourism Zones (STZ)

    5 STZs in partnership with states to boost tourism in India
  • Medical tourism

    Economical treatment, quality healthcare infra & highly skilled doctors
  • Coastal tourism

    Promote intra-regional trade among Indian Ocean Rim (IOR) countries
  1. Apr 2019: US Company Airbnb has invested $75 mn in SoftBank backed hospitality firm Oyo in a funding round giving it access to Airbnb's global as well as Indian user traveller base.
  2. May 2018: Realty firm Embassy group will invest $197.1 mn to develop four new hotels in Bengaluru as part of its expansion plan the in hospitality business.
  3. May 2018: Leisure Hotels Group to invest $14.6 mn to add 8 properties by 2020-end.
  4. Apr 2018: Specialty Restaurants to invest $5.9 mn, to open 8-12 new outlets.

  • $13 bn FDI in the hospitality industry (in USD) in Hotel & Tourism during April 2000 - June 2019
  • $25.2 bn Foreign direct investment in the tourism sector during 2017-18 (growth of 17% over the same period of the previous year)

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