MAKE IN INDIA-

Tourism and Hospitality

Presented By –
Ishika Garg 20609010
Sneha Singh 20609006
Barkha Maheshwari 20609012
Chetan Khattar 20609021
Vrinda Agrawal 20609004
Ayushi Aggrawal 20609020
Ishita Nagpal 20609025
•INTRODUCTION
•REASON TO INVEST
•RECENT ANNOUNCEMENTS
•STATSTICS
•GROWTH DRIVERS
•FDI POLICY
•SECTOR POLICY
•FINANCIAL SUPPORT
•INVESTMENT OPPORTUNITIES
•FOREIGN INVESTORS
•AGENCIES
•KEY ACHIEVEMENTS
•SWOT ANALYSIS
•SUMMARY
The Indian tourism and hospitality industry has emerged as one of the key drivers of
growth among the services sector in India.
Tourism in India has significant potential considering the rich cultural and historical
heritage, variety in ecology, terrains and places of natural beauty spread across the country.
Tourism is also a potentially large employment generator besides being a significant
source of foreign exchange for the country.
In FY20, 39 million jobs were created in the tourism sector in India; this accounted for
8.0% of the total employment in the country.
The number is expected to rise by two% annum to 52.3 million jobs by 2028.
According to WTTC, India ranked 10th among 185 countries in terms of travel &
tourism’s total contribution to GDP in 2019. During 2019, contribution of travel & tourism
to GDP was 6.8% of the total economy, Rs. 13,68,100 crore (US$ 194.30 billion).
https://youtu.be/xTIF0WWcucs
Reasons to Invest
 Tourism is the third largest foreign exchange earner for the country. The Foreign Exchange
Earnings (FEE), from the Tourism industry in India, stood at USD 28.585 Bn in 2018. 
 Globally, India is also the 3rd largest in terms of investment in travel & tourism with an
investment of USD 45.7 Bn in 2018.
 India has a diverse portfolio of niche tourism products which includes cruises, adventure,
medical, wellness, sports such as Golf and Polo, MICE (meetings, incentives, conferencing,
exhibitions), eco-tourism, film, rural and religious tourism.
 Hotels with a project cost of USD 29.85 Mn or above are already included in the Harmonized
Master List (HML) of Infrastructure. The MoF (Ministry of Finance) is constantly being
pursued for the inclusion of Hotels with a project cost of USD 3.7 Mn to USD 29.85 Mn in the
HML.
 The centrally funded scheme of Swadesh Darshan and Pilgrimage Rejuvenation and Spirituality
Augmentation Drive (PRASAD) provide for introducing suitable Public Private Partnership
(PPP) for improved sustainability of the projects. Viability Gap Funding may be provided under
the schemes in accordance with the relevant guidelines/instructions of the Government .
Recent Announcements
16th April 2021: Ministry of Tourism Signs MOUs with Online Travel Companies to
strengthen hospitality and tourism industry to encourage local tourism Industry with
appropriate safeguards for curbing spread of COVID-19.

10th April 2021: Ministry of Tourism to hold a mega tourism promotion event in Srinagar
“Tapping the Potential of Kashmir: Another Day in Paradise” to showcase the myriad
tourism products.

17th March 2021: Ministry of Tourism organises webinar on “Assamese Cuisine- The

Gourmet Unexplored” under Dekho Apna Desh campaign to promote tourism in North east
region.

16th March 2021: Ministry of Tourism signed 28th MoU under the “Adopt a Heritage:
Apni Dharohar, Apni Pehchaan” to give a boost to Tourism industry.
Statistics
• The Tourism and hospitality industry in India is an employment generating industry and every USD 1 Mn invested in
tourism creates 78 jobs.

• The Tourism industry in India is the 3rd largest foreign exchange earner after gems, jewellery and readymade garments.

• India ranks 14th in terms of absolute Foreign Exchange Earnings (FEE) and 122nd in terms of share of visitor exports in
total export.

• Foreign Exchange Earnings (FEEs) during 2019 were US$29.962 Bn (Provisional estimates) with a growth of 4.8%
from previous year.

• Foreign Tourist Arrivals (FTAs) during 2019 were 10.89 Mn (Provisional) with a growth of 3.2% from previous year.

• The cumulative FDI equity inflow in the Hotel and Tourism industry in India is USD 15.28 Bn during the period April
2000 to March 2020.
Growth Drivers
1. The Government of India has recently been focusing upon fast-track infrastructure
development and promoting tourism digitally.
2. The key initiatives undertaken are:
i) E-visa facility extended to 171 Countries under 5 sub-categories i.e ‘e-Tourist visa’,
‘eBusiness visa’, ‘e-medical visa’, ‘e-Medical Attendant Visa’ and ‘e-Conference Visa’.
ii) PRASHAD scheme
iii) The Ministry of Tourism has been complemented by progressive initiatives by other
ministries, such as UDAN scheme by the Ministry of Civil Aviation, tourist trains by the
Ministry of Railways, Sagarmala project and development of lighthouses by the Ministry
of Shipping.
iv) Swadesh Darshan Scheme

3. Cultural Diversity: The traditional themes of culture & heritage, religious and nature-
based Tourism are still the frontrunners shaping the inbound tourism landscape in India.
Rich history & vibrant culture, deeply entrenched faith in religion and unparalleled
diversity in natural resources present a distinct advantage to India.
• 100% FDI is allowed under the automatic route in the Tourism and hospitality
industry in India, subject to applicable regulations and laws.

• 100% FDI allowed in tourism construction projects, including the development of

hotels, resorts and recreational facilities.

• The cumulative FDI equity inflow in the Hotel and Tourism industry is USD
15,614.62 mn during the period April 2000 to December 2020. This constitutes
2.99% of the total FDI inflow received across sectors.27
Sector Policy
NATIONAL TOURISM POLICY 
A National Tourism Policy was formulated in 2002. However, considering the
widespread interrelated global advancements, a new draft National Tourism Policy has
been formulated, which is yet to be approved and has the following salient features:
•The focus of the Policy is on employment generation and community participation.
•Stress on the development of tourism in a sustainable and responsible manner.
•An all-encompassing Policy involving linkages with various Ministries, Departments,
States/Union Territories and Stakeholders.
•The Policy enshrines the vision of developing and positioning India as a “MUST
EXPERIENCE” and “MUST RE-VISIT” destination for global travellers, whilst
encouraging Indians to explore their own country.
•To develop and promote varied tourism products including the rich culture and heritage
of the country, as well as niche products such as medical &wellness, MICE (meetings,
incentives, conferences and exhibitions, Adventure, Wildlife and so on.
•Development of core infrastructure (airways, railways,
roadways, waterways, etc.) as well as Tourism Infrastructure.
•Developing quality human resources in the Tourism and
Hospitality industry in India, across the spectrum of
vocational to professional skills development and
opportunity creation.
•Creating and enabling an environment for investment in
tourism and tourism-related infrastructure.
•Emphasis on technology-enabled development in tourism.
•Focus on domestic tourism as a major driver of tourism
growth.
KEY PROVISIONS OF BUDGET:
 Allocation of USD 333.33 Mn (INR. 2500 crore) for 2020-21 for tourism promotion.

 To develop and enhance tourist infrastructure a provision of USD 158 Mn is made for developing
Swadesh Darshan. States have been given greater flexibility in the development of Tourist
infrastructure as per local requirement from their enhanced resources.

 A host of benefits have been provided under the GST regime. Extremely low taxes on food and
hotel rooms have been very beneficial. GST is proving to be a major benefit for the tourism and
hospitality industry. The process to claim and avail ITC (input tax credit) is simple and clear.
TAX INCENTIVES:
An investment-linked deduction under Section 35 AD of the Income Tax Act is in place for
establishing new hotels in the 2-star category and above across India, thus permitting a 100%
deduction in respect of the whole or any expenditure of a capital nature excluding land, goodwill and
financial instruments incurred.

STATE INCENTIVES:
 Incentives offered by state governments include subsidised land cost, relaxation in stamp duty,
exemption on sale/lease of land, power tariff incentives, concessional rate of interest on loans,
investment subsidies/tax incentives, backward areas subsidies and special incentive packages for
mega projects.

 Incentives are provided for setting up projects in special areas – the North-east, Jammu & Kashmir,
Himachal Pradesh and Uttarakhand.
INCENTIVES FROM THE MINISTRY
OF TOURISM:
  Assistance in large revenue-generating projects
 Support for Public-Private Partnerships (PPPs) in infrastructure development such
as viability gap funding
 Schemes for capacity-building of service providers
 The presence of world-class hospitals and skilled medical professionals make India a preferred
destination for medical tourism.
 As an opportunity for cruise owners and operators by capturing/capitalizing the opportunity
from a vast beautiful coast line, vast forest and undisturbed idyllic islands.
 Rural tourism is mainly promoted by the Incredible India 2.0 Campaign.
 The Ministry of Tourism has sanctioned Rural Tourism projects at 185 sites in several
states/union territory administrations up to 31 March 2012.
 Under Swadesh Darshan Scheme, Ministry of Tourism identified Rural & Coastal Circuits as
one of the thematic circuits for development.
 Eco-tourism is at a nascent stage, but there are conscious efforts to save the fragile Himalayan
eco-system and the culture and heritage of indigenous people.
 The Tourism and hospitality industry in India offers opportunities across various sub-segments
such as timeshare resorts, convention centres, motels, heritage hotels . Investment opportunities
in the setting up of tour operations and travel agencies cater to burgeoning tourist inflow.
Foreign Investors
Accor (France)
The Four Seasons Group (Canada)
Thomas Cook (UK)
Marriott Hotels (USA)
Expedia (USA)
Premier Travel Inn (UK)
Cox & Kings (UK)
Hyatt Hotels Corporation (USA)
Airbnb (USA)
Agencies
 Adventure Tour Operators Association of India (ATOAI)
 Association of Domestic Tour Operators of India (ADTOI)
 Hotel Association of India
 India Convention Promotion Bureau (ICPB)
 Indian Association of Tour Operators (IATO)
 Indian Heritage Hotels Association
 Indian Tourist Transporters Association (ITTA)
 Federation of Hotel and Restaurant Associations of India (FHRAI)
 Travel Agents Federation of India (TAFI)
Swadesh Darshan launched
PRASAD launched
Adopt a Heritage 
Dekho Apna Desh
 SWOT ANALYSIS
STRENGTH WEAKNESS

• India’s geological location is a culmination of forests, • Lack of sufficient infrastructure.

deserts, and mountains and beaches.
• Variety of culture i.e. a mix of diverse civilizations and
• Gap between requirement and supply of
their traditions. A wealth of archeological sites. manpower. Insufficient standard hotels in the
• India has been maintaining good and pleasant
country leading to the crisis of accommodation
association with different countries which helps the for the visiting tourists.
people of those countries to get the visas easily to visit • Maintenance and Cleanliness
India.
• Country of prosperous heritage and traditions having a • No appropriate marketing of India’s tourism in
enormous and varied history a foreign country.
OPPORTUNITIES THREATS

• Different government initiatives • Aggressive strategies adopted by other countries

• Allowing entry of added multinational companies like Australia, Singapore in promoting their
into the country giving us a worldwide perception. tourism affects Indian tourism.

• As well as development of domestic tourism is • COVID-19 situations.

one of the factors of the growth of the tourism • Lack of basic infrastructure and accommodations
industry. for tourists in rural areas of the country.
• Shift of the global foreign tourists arrivals from • Lack of Man made attractions gives an edge to the
developed economies to emerging economies competitors.
 The Tourism and Hospitality industry in India is one of the largest service
industries. Tourism is an integral pillar of the Make in India programme.
 India is the 8th largest country in terms of contribution to travel & tourism GDP. 
 The Tourism industry in India generated USD 247.3 Bn showing a growth of 6.7%
during the year 2018, accounting for 9.2% of the total economy.
 In 2018, the total number of domestic tourist visits (DTVs) to states and Union
Territories stood at 1854.93 Mn. with an annual growth rate of 11.9%. About 10
Mn foreign tourist arrivals have been recorded in 2017. The contribution to
employment, by the Tourism industry in India, has been 42.7 Mn jobs in 2018.
 The World Heritage List has 38 sites inscribed which include 30 cultural, 7 natural
and 1 mixed category site. There are 3686 monuments/sites under the protection of
the Archaeological Survey of India (ASI).
 Q/A
• Q1. List out some of the tourism products.
• Q2. What is full form of  “PRASAD”? 
• Q3. How is tourism promoted in North-east region?
• Q4. Name 3 beaches in India.
• Q5. “God's Own Country” is which state’s tagline?
• Q6. Which city is known as “Switzerland of India”?