Hospitality, tourism and economic growth in india

Hospitality, tourism

and economic growth in India

Vinnie Jauhari

HP Labs Open Innovation Office, Hewlett-Packard India, Gurgaon, India

Abstract

Purpose – The objective of this paper is to provide a backdrop to the Worldwide Hospitality and

Tourism Themes (WHATT) theme issue on developments in hospitality and tourism in India and its

contribution to economic growth.

Design/methodology/approach – The paper narrates the growth potential of tourism in India and

provides a perspective on the conduct of a roundtable discussion about economic growth.

Findings – The paper discusses the potential that tourism holds for India and its economic growth.

It also captures the essence of the roundtable which was conducted in 2008 to capture practitioners

perspectives.

Originality/value – This paper relates the growth of hospitality and tourism in India to the

country’s overall economic growth. The paper provides academic and practitioner perspectives on

some key issues.

Keywords Hospitality management, Tourism, Economic growth, Employees, India

Paper type Viewpoint

Tourism in India

The travel and tourism sector creates more jobs per million rupees of investment than

any other sector of the India economy (Tenth Five Year Plan 2002-2007, Government

of India). The evidence suggests that there is a significant role for tourism in

achieving the nation’s socio – economic objectives. The role envisaged for the private

sector in fact led to a process of disinvestment in 18 hotels by the India Tourism

Development Corporation. The contribution of the state has been seen as more

strategic in terms of infrastructure development, planning of broad development

strategies and in relation to fiscal and monetary incentives to catalyse private sector

investment. The Tenth Five Year Plan 2002-2007 notes: “In India for every

international tourist, there are 80 domestic tourists.” The World Travel & Tourism

Council (WTTC) has identified India as one of the world’s foremost tourist growth

centres in the coming decade. India is expected to achieve the fastest rate of growth,

with the total amount of economic activity likely to be generated by travel and

tourism predicted at 9.7 percent over the next ten years. As per the WTTC, the

Department of Tourism, Government of India estimates that tourism exports account

for 9.5 percent of India’s total exports and the number of people employed in the travel

and tourism segment is 25 million people. This has implications for the contribution

that the tourism sector in India is capable of.

In order to realize its potential in tourism, India needs to provide internationally

benchmarked tourist products and destinations to compete with other countries.

India offers enormous advantages for those who are seeking a vibrant destination.

They include:

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/1755-4217.htm

Economic

growth in India

7

Worldwide Hospitality and Tourism

Themes

Vol. 1 No. 1, 2009

pp. 7-11

q Emerald Group Publishing Limited

1755-4217

DOI 10.1108/17554210910949832