Introduction
Tourism & Hospitality Sector (including Travel and Hospitality services such as hotels and restaurants) has been universally recognized as an agent of development and an engine for socioeconomic growth. According to WTTC’s India Benchmarking Report 2015, every USD 1 million in Travel and Tourism spending in India generates USD 1.3 million in GDP. During 2014-16, the Government has undertaken various initiatives through policy interventions and by enabling infrastructure development to make ‘Incredible India’ a ‘must revisit, must experience’ destination. As a result of these initiatives, the sector has registered a phenomenal growth in domestic tourism, foreign tourist arrivals, foreign exchange earnings, and employment opportunities.
- As per the Travel & Tourism Competitiveness Index 2015 of the World Economic Forum, India’s rank climbed up 13 Places to 52 in 2015 from 65 in 2013.
- The UNWTO Tourism Barometer (Volume 14, May 2016) currently ranks India at #40 in terms of global tourist footfalls. 2 The goal is to increase India’s share in world tourist arrivals from the present 0.68% to 1% by 2020, and further increase it to 2% by 2025.
Policy Initiatives & Investments
FDI Policy
- 100% FDI is permitted through automatic route for all construction development projects such as construction of hotels and resorts, recreational facilities, city and regional level infrastructure. Although FDI in sector is subject to lock-in period of three years based on certain conditions, special dispensation has been given for construction of hotels and resorts, recreational facilities, hospitals, educational institutions, Special Economic Zones, old age homes and investment by Non Resident Indians. Furthermore, conditions regarding minimum capitalization and area restriction have also been removed.
E-Tourist Visas
- The e-Tourist Visa (eTV) scheme, previously known as Tourist Visa on Arrival enabled with the Electronic Travel Authorization, was launched on November 27, 2014 for nationals of 43 countries.
- Prior to the launch of the scheme, the eTV facility was available for nationals of 12 countries only.
- This facility is now available at 16 airports and 5 major ports in the country. The Government of India, w.e.f. November 2015, has revised the e-Tourist Visa (e-TV) fee in four slabs of 0, USD 25, USD 48, and USD 60. Previously eTV application fee was USD 60 for all the countries.
- Bank charges have been reduced from USD 2 to 2.5 % of the e-TV fee, which at the highest slab works out to USD 1.5 as compared to USD 2 earlier. There is no bank charge for zero visa fees. The visa will be valid for 60 days and can be applied upto 4 months ahead of visit.
- At present on an average 3,500 e-Tourist Visas are being granted daily to foreign nationals. The e-tourist visa scheme has attracted large number of tourists from countries like U.S, Germany, U.K among others.