India’s tourism and hospitality sector is all set to create over 6.1 million new jobs by 2036-37, according to a new report released by the Confederation of Indian Industry (CII) and EY.
The whitepaper, presented at the 18th Annual CII Tourism Summit, analyses the sector’s pivotal role in economic growth and job creation.
Currently, tourism and hospitality contribute to about 8% of India’s total employment. Despite setbacks from the Covid-19 pandemic, the sector is witnessing a strong resurgence, fueled by domestic tourism.
By 2036-37, spending in this sector is projected to rise by 1.2 times, driving the need for an additional 6.1 million workers, of which 4.6 million will be men and 1.5 million will be women. This growth underscores the sector’s potential in driving gender inclusion and workforce expansion.
With a focus on specialised skills in digital marketing, sustainable tourism and customer service, the whitepaper proposes the introduction of a Tourism Employment Index (TEI) to efficiently track employment trends and offer actionable insights into workforce dynamics. It also explores leveraging the gig economy to provide flexibility and high-quality services during seasonal peaks, while identifying community-driven programmes and Gen-Z workforce preferences as key enablers of a more inclusive and innovative work environment.
While addressing the event, Union minister of tourism and culture Gajendra Singh Shekhawat highlighted how post-Covid, tourism in India has seen a significant boom driven by domestic tourists, whose spending power has increased tremendously.
“India cannot be compared to any other country in terms of economic growth or even tourism because India has a unique identity defined by our high domestic potential,” said Shekhawat, adding that India has an edge over competing countries like Singapore, Thailand, Dubai, etc, even though there is an influx of foreign tourists, their countries’ domestic potential is almost negligible. India, on the other hand, being the most populous country, has high domestic potential, which is growing at a rapid rate, he explained.
Shekhawat also referred to the forthcoming Coldplay concert as a key example of experiential tourism, with an economic value of about Rs 400-500 crore per show.
Talking about how tourism can be a game-changer, the minister said, “On India’s journey toward becoming a $34-trillion economy, tourism can be a game-changer by contributing about $3 million. There is a need to identify gaps and work together to bridge them.”
While a burgeoning economy, rising incomes and growing aspirations have created an unprecedented demand for tourism, the problem is that the supply, in terms of number of hotels, tourist infrastructure, etc, is not keeping pace with tourist demand.
Addressing the supply shortages to meet the growing demand in the tourism sector, Suman Billa, additional secretary, ministry of tourism, said, “We need a three-pronged strategy for the states to improve supply and create a flourishing tourism sector. First is for the ministry of finance and RBI to provide the infrastructure status to the sector, which would offer credit at cost effective rates and with longer repayment period. Second is to rationalise development norms across states; and third is to facilitate ease of doing business by simplifying clearances and making them time bound.”
The summit saw stalwarts from the tourism and hospitality sector talking about the concerns that India needs to address.
Sanjay Sethi, MD & CEO, Chalet Hotels, said, “The infrastructure status to be provided to the industry should be looked at from the perspective of Coastal Regulation Zone (CRZ) policy for hotel development.”
Anil Chadha, chief executive, ITC Hotels, highlighted that leisure tourism is the way forward for India. “India’s story on food is amazing and every location is versatile in terms of food and language which should be built upon. Similarly, India has sufficient capacity in MICE tourism with world-class facilities provided by conference centres such as Yashobhoomi, Bharat Mandapam, etc.”
Puneet Chhatwal, chairman, CII National Committee on Tourism and Hospitality, and MD & CEO of Indian Hotels Company Limited (IHCL), shared his thoughts on India’s position in the global tourism landscape. “A great example is of Paris, which attracts 25 million international visitors annually, compared to India, which struggles to attract even 10 million foreign arrivals, despite its vast and varied offerings,” said Chhatwal, while stressing that India is at an inflection point, moving from ‘Incredible India’ to ‘Inevitable India.’