Visitors at Sinquerim beach in Candolim.
Credit: PTI File Photo
Bengaluru: The tourism and hospitality sector is poised to create 61 lakh new jobs by 2034, as per a report by the Confederation of Indian Industry (CII) and Ernst & Young LLP (EY) released on Wednesday.
Tourism and hospitality currently contribute to about 8 per cent of India’s total employment. Despite setbacks during Covid-19, the sector is witnessing a strong resurgence, fueled by domestic tourism. By 2034, spending in this sector is projected to rise by 1.2 times, driving the need for an additional 61 lakh workers. However, this new workforce will comprise 46 lakh males versus only 15 lakh females.
In 2023, the sector’s direct contribution to India’s GDP surpassed $231 billion, making India the second highest in the Asia-Pacific region, in terms of tourism contribution to GDP.
As of 2024, the travel and tourism sector is estimated to contribute approximately 6.8 per cent to India's total GDP. The industry is expected to rise to $68 billion by 2027, and potentially reach $1 trillion by 2047.
Employment is expected to rise by 2.45 million jobs in 2024, the report cited as per World Travel and Tourism Council (WTTC).
Approximately 31 per cent of the jobs in 2025 will be direct, including roles such as tour guides, hotel staff and tour operators, while the remaining 69 per cent will be indirect, encompassing jobs in supply chain management, logistics, IT support and landscape maintenance.
One main challenge highlighted is the lack of comprehensive data regarding employment trends, workforce dynamics and skills requirements. The lack of accurate data leads to underreporting of the industry’s contribution to national employment statistics. This is caused by issues such as informal employment wherein roles are often excluded from formal data collection frameworks, lack of standardisation across states, and seasonality and regional variations.
The importance of language proficiency is also growing. With a record 9.2 million foreign tourist arrivals in 2023, English language skills are now essential for roles such as hotel executives and tour guides.
A trend on the rise is the preference for diploma courses over conventional degrees in the industry, due to the shorter duration and lower cost-effective options in diploma courses.
Other challenges underlined were a skills gap, particularly in food services, facilities management and tourism operations.