Spending by Foreign Tourists Soars, India’s Latest Economic Survey States - India Report

23.07.2024 - 09:37 / skift.com / Bulbul Dhawan

India’s foreign exchange earnings through tourism in 2023 was INR 2.3 trillion ($27.5 billion), according to the government’s latest Economic Survey for 2023-24 – a 66% gain over 2022.

In 2023, more than 9.2 million foreign tourists visited India, up 44% from 2022. 

Those are strong gains, however we’ve previously reported that much of India’s recovery post-pandemic is being driven by the domestic tourism market. According to a report by World Travel and Tourism Council (WTTC), international travel spending in India in 2023 was some 14% less than pre-Covid levels.

Hospitality Industry in India: The Economic Survey said that in 2023, the hospitality industry in India added 14,000 rooms, the most it has ever added. The total inventory of “chain-affiliated rooms” in India stood at 183,000. 

The survey added that the industry is also working to personalize guest experiences and improve operational efficiencies. “Hotels are also adopting innovative operational strategies, such as leasing or managing external restaurant, spa, and lounge brands, to capitalize on established concepts that attract hotel residents, thereby boosting revenue,” the Survey added.

Data compiled from the monthly reports of hospitality consulting firm HVS Anarock showed that in the 2024 financial year, the average daily rates in Indian hotels increased to INR 7,616 ($91) from INR 6,704 ($80), an increase of 13.6%. 

Employment Issues: The survey said that global inflationary pressures and delays in the recovery of capacity have impacted the Indian travel and tourism sector, just as other economies have been hit. “However, the decline in price competitiveness since 2021 has been minimal compared to its peers, with only a 0.7% drop. India’s decline is particularly slight at just 0.1% from 2021 levels,” the Economic Survey stated.

Citing the World Economic Forum’s TTDI 2024 report, the survey said that there is a need for improvements in tourist services and infrastructure, and the development of a skilled workforce. Skift has also previously reported on the worker shortage in the tourism industry in India. 

“To formalize employment within this sector, the Ministry of Tourism has initiated the Incredible India Tourism Facilitator Certificate Programme. This program aims to create a skilled cadre of tourist facilitators nationwide through a digital platform,” the survey shared. 

The operations across aviation industry in India were restored over the weekend to function smoothly after a Microsoft glitch impacted airline and airport systems. All major airlines, including Air India, Vistara, Indigo, Akasa Air, Air India Express and SpiceJet were impacted by the issue on Friday.

A statement from the Ministry of Civil Aviation on Saturday