Tourist volumes in India will witness an annual growth of over 11% during 2011-15, according to a BRICdata report.
The growth will be driven by the health and wellness tourism segment, which has posted strong growth due to the high healthcare costs in Western countries and India’s high-quality medical facilities.
Similar growth was recorded during 2006-10 when tourism volumes grew at a CAGR of 11.03%, driven by robust global economic development, government initiatives and incentives to promote private investments, according to the report.
Based on rising demand, with tourist spending power gaining momentum and sectors such as air transportation still in the growth phase, the report foresees plenty of opportunities for capital investment in the Indian tourism sector.
The BRICdata report identified easy access to loans to fund tourism-related expenditure as the key factor behind the continuous increase in spending power among Indian tourists.
The report also outlines key challenges impeding the Indian travel and tourism sector’s full growth potential, which include infrastructure bottlenecks, poor hygiene standards, delays in policy frameworks and high crime rates.
As the largest service sector in India, travel and tourism contributes 6.23% to the country’s GDP and accounts for 8.78% of total employment.
As per the World Economic Forum, India is the 11th most attractive tourist destination in Asia Pacific in 2010.
The full report, Travel and Tourism in India, Key Trends and Opportunities to 2015, is available from BRICdata. Click here for more details.