Dun & Bradstreet India is pleased to present to you the publication ‘Indian Travel, Tourism and Hospitality Industry’ under the ‘D&B Sectoral Round Table Conferences’ series. The publication aims to provide an analytical overview of the current trends and prospects of the industry and is divided into two sub-segments viz., Travel & Tourism and Hospitality.

As with other sectors in the economy, the travel, tourism and hospitality industry has also grown, and is an integral part of the economy. The sector accounts for around 8.0% of India’s GDP and the industry provides impetus to other industries through its backward and forward linkages. It is also a significant employment generator and a substantial contributor towards foreign exchange earnings of the country.

In 2009, like other industries, the travel & tourism and hospitality industry also suffered due to the global financial meltdown and the global economic slowdown. Foreign tourist arrivals dropped by 3.3% in 2009; however domestic tourist movement was 15.5% higher at 650 million during 2009. The slowdown in India’s core markets, US, Europe and UK, travel advisories issued by countries against travel to India post the terror attacks in Mumbai, as also postponement of holidays by travelers, hit tourist inflow into India in 2009. Nevertheless, going forward, international events (Commonwealth Games, ICC World Cup Cricket, Formula 1, etc) and the government’s efforts to promote India as a tourist destination are expected to increase tourist inflow in the near future.

The Indian hospitality industry has emerged as one of the key industries driving the growth of the services sector in India. The fortunes of this industry are closely linked to the tourism industry and hence tourism is one of the most important growth drivers. This explains the healthy growth recorded by the hospitality industry in the last decade, fuelled by robust inflow of foreign tourists as also increased tourist movement within the country. While the prospects of the hospitality industry remain bright following a revival in the global economy, the domestic industry continues to grapple with certain critical challenges such as high real estate prices, shortage of manpower and high tax structure.

India’s share in the global travel and tourism industry (in terms of international tourism receipts) is around 1.2%; it however holds immense potential, given the country’s rich history, and cultural and geographical diversity. In addition, the development of innovative tourism products, excellent medical facilities in the country and the entry of international players in the hotel industry is expected to drive growth in the Indian Travel, Tourism and Hospitality Industry.

I hope you enjoy reading this publication and I look forward to receiving your suggestions.

Kaushal Sampat
President & CEO - India
Dun & Bradstreet