India is set to emerge as a significant player in the global tourism economy, projected to join the top 10 by 2024-25, according to recent industry reports.
Global Tourism’s Strong Comeback
The global travel and tourism sector is experiencing a robust recovery after the pandemic. In 2023, it contributed an impressive US$10.9 trillion to the world economy, as highlighted by the World Travel & Tourism Council (WTTC).
This positive trend is expected to continue, with the World Economic Forum (WEF) forecasting the industry’s contribution to reach $16 trillion by 2034. This would represent over 11 percent of the global GDP, underscoring the sector’s growing economic importance.
Who’s Leading the Pack?
The United States remains the world’s largest tourism economy in 2024, contributing a massive $2.36 trillion. This figure is almost double that of its closest competitor.
China holds the second position with $1.3 trillion and is anticipated to become the global leader within the next decade. Japan has made a notable leap, climbing to fourth place with a $297 billion contribution.
While traditional powerhouses like Germany, the UK, France, Italy, and Spain maintain strong rankings, several Asian economies, including Hong Kong, Malaysia, and the Philippines, are rapidly establishing themselves as regional tourism leaders.
Understanding the Travel & Tourism Development Index (TTDI)
The World Economic Forum (WEF) releases the Travel & Tourism Development Index (TTDI) biennially. This index is an evolution of the long-standing Travel & Tourism Competitiveness Index (TTCI) series, which has been in production since 2007.
The TTDI serves as a crucial tool for assessing the various factors and policies that support the sustainable and resilient growth of the travel and tourism sector. Ultimately, it aims to contribute to a country’s overall development.
In the TTDI 2024 rankings, among 119 countries, the US secured the top spot. Spain, Japan, France, and Australia followed, completing the top five. High-income economies in Europe and the Asia-Pacific region consistently led the index.
India’s Vision: Swadesh Darshan 2.0
To further boost its tourism potential, India launched the Swadesh Darshan Scheme in 2014-15. This initiative focused on the integrated development of theme-based tourist circuits across the nation.
Initially, the scheme faced challenges due to resource distribution across many states and numerous stakeholders. To address these issues, a revamped version, Swadesh Darshan 2.0, was conceptualized.
This updated scheme emphasizes developing one destination at a time to attract domestic tourists. With the philosophy of ‘vocal for local,’ Swadesh Darshan 2.0 aims to achieve ‘Aatmanirbhar Bharat’ (self-reliant India) by unlocking the country’s full potential as a premier tourism destination.
The revamped scheme promotes sustainable and responsible tourism, encompassing infrastructure, services, human capital development, destination management, and policy reforms.
- The global travel and tourism sector contributed $10.9 trillion in 2023.
- The US, China, and Japan are among the top tourism economies globally.
- India is projected to enter the top 10 tourism economies by 2024-25.
- The World Economic Forum publishes the biennial Travel & Tourism Development Index (TTDI).
- India’s Swadesh Darshan 2.0 scheme focuses on developing sustainable domestic tourism.
These developments highlight India’s increasing focus on leveraging its diverse attractions to boost its economic growth and global standing in the tourism sector.
