Indian Market & Trends

India’s tourism market to grow at 7% CAGR btw 2016-21: Report

DELHI: The travel and tourism market in India will grow at a CAGR 7% between 2016 and 2021 as per a report by TechSci Research. The firm said that the growth will be hinged on increasing foreign tourist footfall, robust medical infrastructure development, rising government initiatives and diversified service offerings by major companies.

In 2015, foreign tourist footfall in India stood at over 8 million, which were 4.5% higher than the previous year as per India’s Ministry of Tourism. The report said that the same was projected to increase through 2017 on account of rising infrastructural developments, increasing trend towards recreational tourism and growing regional and central government’s focus on promoting tourism sector.

In addition to foreign travel arrivals, over 1,430 million domestic tourists visited different states/union territories of India in 2015.

“Increasing disposable income along with a rising middle class has continued to support growth of domestic and outbound tourism in the country. Furthermore, Ministry of Tourism in India has been proactively engaged in designing national policies for promotion and development of travel & tourism sector in the country”, said Mr. Karan Chechi, Research Director, TechSci Research.

Medical Tourism grows strong

Leisure & recreation segment dominated the Indian travel & tourism market in 2015 with increasing numbers visiting families and friends for various occasions and tour operators offering cheap packages. Medical tourism is a small, but robustly growing segment for India travel & tourism market with availability of cost-effective and quality medical treatment procedures at internationally renowned facilities.

South India to lead market growth

South region dominated India travel & tourism market in 2015 as per the TechSci report. It added that the region is expected to continue dominating the market through 2021. Moreover, India’s southern region is also emerging as a key hub for medical and wellness tourism.

Musafir Namah Bureau

 

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