In a meeting on May 10, The Federation of Associations in Indian Tourism & Hospitality (FAITH) has revised upwards its value at risk to Indian tourism to around $140 billion from an earlier estimate of about $80 billion. The direct and indirect economic impact of the tourism industry in India is approximately estimated at 10% of India’s GDP. This roughly puts the full-year economic multiplier value of tourism in India at almost $ 250 billion.
This value covers the whole tourism value chain across airlines, travel agents, hotels, tour operators, tourism destinations restaurants, tourist transporters, tourist guides etc. These are across all the segments of tourism be they leisure, corporate travel, heritage, adventure, sea & river cruises, camping, rafting, golf film tourism, jungle tourism, agritourism and many more.
According to FAITH, in India, given its globally unique natural and cultural heritage, each rupee spent on tourism could have an economic multiplier of between 2.5 - 3 times are spread right across the cities to remote areas pan India. FAITH also indicates that help is required to keep the Indian tourism industry alive for a revival and also keep the jobs intact and it will also protect the exposure of the banking sector to tourism preventing their loans from becoming NPAs.
FAITH has already raised requests over the past seven weeks to the Central Government, customized requests to each of the 28 Chief Ministers, to RBI, to the Tourism Parliamentary panel to Ministry of Commerce, Ministry of Civil aviation and is closely in coordination with Ministry of Tourism.
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