How to revive tourism in India

There is no doubt that the social distancing pandemic has most affected the tourism sector. By now it is also established that the revival of tourism sector will take longer than expected. For an industry which accounts for 6.8% of the GDP and supports 8% of total employment (World Travel & Tourism Council), it is about time that India has a strategy in place for reviving the ailing tourism sector that also has strong linkages with the MSME and informal sectors.

India, which ranks 34th (of 140 countries) in the Travel and Tourism Competitiveness Index (TTCI) 2019 by the World Economic Forum, should have a two-pronged strategy for reviving its tourism sector–a near-term and a medium-term strategy. While defining these strategies policymakers may bear in mind that recovery in the near-term would be a revival in domestic tourism and medium-term would be in the international tourism space. In this regard, the promotion of local tourism (including farm or village tourism), experiential domestic travel in rural areas, day tours, among others, have begun in India and are on the rise.

Before the pandemic, foreign tourist arrivals (FTA) in India grew at an annual average of 8.7% during 2014-15 to 2018-19. In 2019-20, however, growth moderated to 3.2%. Travel bans across the world, that commenced by February this year, have opened its doors to virtual tourism.

In India, the use of virtual technologies in the tourism and hospitality industry, though increasing, is limited. It has been used by the larger players, mainly in the hotel industry, and merely as a marketing tool. This could be a stepping stone to the near-term strategy for promoting international tourism in Covid times. India has already taken steps in this direction, by having virtual tours, webinars, among others.

India’s rich civilizational and cultural heritage, makes it the sixth-largest globally in terms of World Heritage Sites identified by UNESCO. In fact, the 30 sites (of the total 38 sites in India) under the cultural category are testimony to this. The Ministry of Tourism through its “Dekho Apna Desh” webinars has started to offer virtual tourism, as well as virtual safaris, tours of museums and art galleries, and exhibitions so far. The next step for virtual tourism could thus be partnering with international universities, particularly departments of history and architecture. India may also tap the live virtual religious tourism avenue for international pilgrims who are unable to travel due to these travel bans. As an example, the Bodh Gaya in Bihar – an important Buddhist pilgrimage site – attracts a vast number of tourists every year. Live streaming the daily rituals of such significant pilgrimage destinations may be considered. Further, this will also lay the foundation for the medium-term, when international tourism opens up. Something similar to Switzerland’s ‘Dream Now Travel Later’.

Establishing confidence among tourists is clearly a challenge, particularly for India. In due course, when international travel opens, India may consider having ‘travel bubbles’ as an option for post-lockdown tourism. Travel bubbles, where countries with low or manageable coronavirus cases are agreeing to open up tourism, is something which has been explored by Latvia, Lithuania, Estonia, and Australia, New Zealand. India may also consider having such travel bubbles at the micro-level, where Indian states with low or manageable coronavirus cases may have travel bubbles with countries with low cases. India’s focus may be more into eco-tourism, with small controlled groups to begin with.

Apart from these, stimulus measures to support the tourism sector, through reduction or waiver of GST, collateral-free borrowing, and or government guarantees on tourism sector borrowing, may be considered.

For all of these, advertising and disseminating information is critical. India may consider having a Swachh Bharat Ranking for its tourists in terms of hygiene standards taking into account the concerns that arise from the pandemic; taking its annual ‘Swachh Survekshan’ survey a step further.

Infusing confidence among tourists is key for revival of the tourism sector, additional measures for training on safety and hygiene may also be provided through web-based platforms in the interim period before international travel picks up.

(The writer is an economist with Export-Import Bank of India)