Maharashtra attracts maximum investments in hospitality & tourism sector: ASSOCHAM

With nearly 17 per cent share, Maharashtra has emerged as the top state in terms of attracting investments in the hospitality and tourism industry across India, indicated a study by apex industry body ASSOCHAM. “Maharashtra has attracted investments worth over INR 15,500 crore of the total outstanding investments worth over INR 93,400 crore attracted by the hotels and tourism industry in India as of June 2016,” noted the study titled ‘Domestic Tourism: Tap the treasure,’ conducted by ASSOCHAM.

“Gujarat (14.5 per cent), Karnataka (12 per cent approx.), Tamil Nadu (10 per cent approx.) and West Bengal (nine per cent approx) also figure among top five states in this regard,” highlighted the study prepared by the ASSOCHAM Economic Research Bureau (AERB).

Though more emphasis is being laid upon luring foreign tourists in India, the share of domestic tourists travelling within India has increased from 95.5 per cent in 1991 to over 98 per cent in 2015, while share of foreign tourists has decreased from 4.5 per cent to 1.6 per cent during this period, noted the study. The number of domestic tourists has increased from about 67 million in 1991 to 1,432 million in 2015, whereas the number of foreign tourists visiting India has increased from about three million to 23 million during the same period.

According to the ASSOCHAM study, the number of domestic tourist visits in India can increase from over 143 crore in 2015 to over 227 crore by 2020. “Given the growth of India’s economy, expansion of middle classes and ongoing westernisation of their lifestyles, the relative importance of domestic tourism can only be expected to increase exponentially over the coming decades. However, it is imperative for governments both at the state and central levels to give more priority and a more integral, central role to domestic tourism in the overall tourism development across India. More so as domestic tourism provides much needed employment to thousands of small-scale entrepreneurs and low scale workers something which the country requires to utilize its growing demographic dividend,” said DS Rawat, secretary general, ASSOCHAM, while releasing the findings of the chamber’s study.

He added, “Besides it compensates for seasonal variations in overseas tourism thereby sustaining tourism demand and employment in tourism.” Tamil Nadu leads in attracting maximum domestic tourists with a share of over 23 per cent in the total (143 crore) domestic tourist visits in 2015 followed by Uttar Pradesh (14 per cent), Andhra Pradesh (8.5 per cent), Karnataka (8.4 per cent), Maharashtra (7.2 per cent), Telangana (6.6 per cent), Madhya Pradesh (5.4 per cent), West Bengal (4.9 per cent), Gujarat (2.5 per cent) and Rajasthan (2.5 per cent), that are amidst the top 10 states in this regard.

While West Bengal has recorded highest year-on-year (2014-2015) growth rate of over 43 per cent in number of domestic tourist visits followed by Telangana (30.5 per cent), Andhra Pradesh (30.3 per cent), Madhya Pradesh (22.6 per cent) and Gujarat (17.4 per cent).

Perking up infrastructure, building tourism industry on core and naturally viable resources, better co-ordination amidst various government agencies and departments, promoting concepts like tourism circuits through effective marketing plans, programmes and road shows are certain key suggestions to enhance potential of domestic tourism sector in India, suggested the suggested.