Towards sustainable tourism

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: Tourism and economics cannot be separated. Governments in many countries have realised this and are aware of the role tourism plays as a catalyst for economic growth. This industry not only opens up new job opportunities, but also enriches the livelihood opportunities of the residents and the communities within a country. Tourism provides the basis upon which communities can renew their pride in the country’s heritage and also upgrade their quality of life.

The World Travel and Tourism Council (WTTC) estimates that travel and tourism is the world’s biggest industry in terms of global GDP and employment. It is estimated that in the year 2008, tourism accounted for US$ 5.9 trillion worth of economic activity or about 10% of the world’s Gross Domestic Product (GDP). Further, it employed over 230 million people.

As for India, the WTTC estimates that by 2020, tourism in India could contribute Rs 850,000 crore to the GDP. Travel and tourism industry thus not only holds tremendous potential for India’s economy but can also provide impetus to other industries, create millions of new jobs and generate enough wealth and lead a sustainable growth path. However to realise this objective there is  need for a fundamental change in approach and understanding and tourism should be included and treated as one of the core sectors of the economy.

The fact that the travel and tourism sector needs this upgrade in status is not based just on emotions but also supported by statistical projections. The contribution of travel and tourism sector to the GDP has been good for the past few years and is expected to stay at 6% (Rs 3,239.4 billion) in 2009. Financially it is estimated to rise to Rs 10,274.1 billion by 2019. Real GDP growth for travel and tourism is expected to be 0.2% in 2009 and an average 7.7% per annum over the coming 10 years.

In terms of employment, the contribution of sector is expected to rise from 31,105,000 jobs in 2009 (6.4 % of total employment or 1 in every 15.6 jobs) to 40,037,000 jobs (7.2% of total employment or 1 in every 13.8 jobs) by 2019. Export earnings from international visitors and tourism goods are expected to generate 6% of total exports (Rs 811.9 billion) in 2009, growing in nominal terms to Rs 2,819 billion (4.1% of total) in 2019.