1. INTRODUCTION:

Tourism is a phenomenon of great social importance in modern society, a fact that is directly linked to historical aspects such as increased free time, improved communications, modern transport, and urbanization. Tourism is also an important economic activity in almost every country of the world and has experienced continued expansion and diversification, to become one of the largest and fastest growing economic sectors in the world.

This sector has a direct impact on an economy of a country, the sector has reflected significant indirect and induced impacts over the past six decades;.

As an engine for economic growth, tourism has been found to be resilient and offers scope for foreign exchange earnings, generating employment, revenue and stimulating domestic consumptions well (Gokovali and Bahar, 2006 ; Modeste, 1995; Steiner, 2006). Studies have demonstrated that tourism plays a significant role towards balanced sustainable development of an economy and that it can be effectively harnessed to generate net benefits for the poor (UNWTO, 2002).The potential of tourism as a tool for an economic growth and poverty reduction is derived from several unique characteristics of the tourism system (UNWTO, 2002).Tourism can play an important and effective role in achieving the growth with equity. Tourism has the potential to grow at a high rate and simultaneously ensure consequential development of the infrastructure of the destinations. It can help a nation to leverage upon its natural scenic resources and capitalize on the country’s success in the services sector as well as provide sustainable models of growth. Tourism sector stimulates forward linkages and cross-sectorial synergies. Expenditure on tourism induces a chain of transactions requiring supply of goods and services from the related sectors. The consumption demand, emanating from tourist expenditure also prompts more employment and generates a multiplier effect on the economy as well as on the other allied economic sectors like agriculture, horticulture, poultry, handicrafts, transport, construction, etc. through its backward and forward linkages

According to the United Nations World Travel and Tourism Council (WTTC) 2015, the Travel and Tourism sector reported 2.8 per cent growth in 2015and outpaced that of the global economy i.e. 2.3 per cent along with the number of other major economic sectors such as manufacturing and retail. In total, Travel and Tourism generated US $7.2 trillion (9.8 per cent of global GDP) and generated 284 million jobs, equivalent to 1 in 11 jobs in the global economy. While traditionally Europe and America have remained high among the tourism markets, new emerging markets are expected to witness high growth in international tourist visits over the next decade. The WTO forecast indicates an increasing tourism preference towards East Asia, the Pacific, West Asia and South Asia. With 279 million tourist arrivals, nearly one fourth of the world’s total international tourists in 2016, Asia and the pacific is the second most visited region in the world with a 6 per cent growth rate. It is above the 4 per cent global average. Asia and the pacific continues to consolidate its position as one of the fastest growing regions in the world that is expected to increase its share of global tourism to 30 per cent in 2030 accounting for an estimated 535 million international arrivals. In Asia, China and India has emerged as a leading tourist destination and is poised to become the world’s top tourist destination by 2020.

India has the potential to achieve considerable share of the world tourism market. India is a country of all reasons and all seasons, full of different natural resources and varieties of tourist destinations. India is having a rich traditional heritage, which has created magnificent architectural flairs, temple cities and towns with fascinating glorious monuments. Besides this, India is having a long and attractive coastline, history, cultural diversity, natural variations e.g., hilly areas, sea beaches, deserts, mangrove forest, and many historical and archaeological sites with a huge potential in the scenario of world tourism. More specifically, India offers 30 World Heritage Sites and 25 biogeographic zones. India has a suitable climate, improving tourism infrastructure and a tradition of hospitality. India has a diverse portfolio of niche tourism products – cruises, adventure, medical, wellness, sports, MICE, ecotourism, film, rural and religious tourism. In a true sense, India possesses the essential qualities of ‘Incredible India’ as it is a heaven for all types of tourists.

2. OBJECTIVES:

The present study aims to achieve the following objectives:

i. To identify and examine the paradigm shifts in the tourism industry over the seeming years and how the trends have behaved in India and

ii. To evaluate the role of tourism in economic development of India.

3. METHODOLOGY:

The design used for this study was that of a descriptive research design which sought to examine, evaluate and assess the current trends in the tourism industry and also the role of tourism in economic development of India Data was collected for this research using secondary sources. To accomplish the objective proposed in this work the author compiled tourism statistics from 1991 to 2016 with a goal of finding no of domestic and foreign tourist visits to India for this period. The following databases were searched:

1. Ministry of Tourism, Government of India and

2. Indian statistics.

4. ECONOMIC IMPORTANCE OF TOURISM IN INDIA:

The WTTC has identified India as one of the world’s foremost tourist growth centres in the coming decade. The sector is predicted to grow at an average annual rate of 7.5 per cent by 2025 (7.2 per cent of GDP) and is expected to achieve the fastest growth of economic activities via tourism sector. India attracted 14.57 million international tourist arrivals in 2016, compared to 13.28 million in 2015.

According to the Ministry of Tourism, Govt. of India Report, 2017, India ranks 8th in the Asia Pacific region compare to 11th in 2013 and 24 globally compared to 41st in 2013.India earned US$21.07 billion in foreign exchange earnings from tourism receipts in 2015 (see Table 1).

The direct contribution of Travel and Tourism sector to GDP was INR2,668.3 billion (2.0 per cent of total GDP) in 2015, This primarily reflects the economic activity generated by industries such as hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported .The direct contribution of Travel and Tourism sector to GDP is expected to grow by 7.9 per cent per annum to INR6,115.5 billion (2.4 per cent of GDP) by 2026. The total contribution of Travel and Tourism sector to GDP (including wider effects from investment, the supply chain and induced income impacts) was INR8,309.4 billion (6.3 per cent of GDP) in 2015, and is forecast to rise by 7.5 per cent per annum to INR18,362.2 billion (7.2 per cent of GDP) in 2026. Further Leisure travel spending (inbound and domestic) generated 83.2per cent of direct Travel and Tourism GDP in 2015 (INR 5,945.5 billion) compared with 16.8 per cent for business travel spending (INR1,198.9billion). Domestic travel spending generated 82.5 per cent of direct Travel and Tourism GDP in 2015 compared with 17.5 per cent for visitor exports (i.e. foreign visitor spending or international tourism receipts). Domestic travel spending is expected to rise by 7.8 per cent per annum to INR13, 305.5 billion in 2026. Visitor exports are expected to rise by 7.2 per cent per annum to INR2; 625.6billion in 2026. In 2015, Travel and Tourism directly supported 23,454,500 jobs (5.5per cent of total employment). This includes employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes, for example, the activities of the restaurant and leisure industries directly supported by tourists and is expected to rise by 2.0% pa to 29,629,000 jobs (5.8% of total employment) in 2026.In 2015, the total contribution of Travel and Tourism to employment, including jobs indirectly supported by the industry, was 8.7per cent of total employment (37,315,000 jobs). This is expected to rise by 3.0per cent in 2016 to 38,441,000 jobs and rise by 1.9per cent per annum to 46,422,000 jobs in 2026 (9.0per cent of total).Money spent by foreign visitors to a country (or visitor exports) is a key component of the direct contribution of Travel and Tourism. In 2015, India generated INR1, 249.3 billion via visitor exports. This is forecasted to grow by 7.2per cent per annum, from 2016-2026, to INR2, 625.6billion in 2026 (3.8 per cent of total). Travel and Tourism is expected to have attracted capital investment of INR2, 264.1billion in 2015. This is expected to rise by 4.8 per cent in 2016, and rise by 6.3 per cent per annum over the next ten years to INR4l, 356.7bn in 2026. Travel and Tourism’s share of total national investment will rise from 5.9 per cent in 2016 to 6.0 per cent in 2026 (Table -2).

Table 2: Contribution of Travel and Tourism to GDP and Employment

Contribution	World	Asia pacific	India %
Direct contribution to GDP	3.0	2.7	2.0
Total Contribution To GDP	9.8	8.5	6.3
Direct contribution to employment*	3.6	3.7	5.5
Total contribution to employment *	9.5	8.6	8.7
Visitors exports	6.1	5.5	4.5
Domestic spending	4.7	4.4	4.4
Leisure spending	2.3	2.0	1.7
Business spending	0.7	0.6	0.3
Capital investment	4.3	3.7	6.0

Source: Author’s Compilation based on secondary data from World Travel and Tourism Council (WTTC), 2015

*000 jobs

5. TRENDS IN TOURIST ARRIVALS IN INDIA:

5.1. Foreign Tourist Arrivals (FTA):

Foreign tourist arrivals (FTA) during last 25 years in India are given in Table - 3 and Figure -1 below. An Increasing trend can be seen from 2002 to 2015 except in 2009 when the country witnessed a negative growth of 2.2 per cent in FTAs due to economic recession.

Table 3: No of Foreign Tourist Arrivals (FTA’s) to all states/UT’s in India, 1991-2015 and

Foreign Exchange Earnings (FEEs) From Tourism in India in (Us $Millions) 1991-2015

Year	No of Foreign Tourist Arrivals (In Million) To India	Foreign Exchange Earnings FEE From Tourism (In Millions) To India
1991	1.68	1861
1992	1.87	2126
1993	1.76	2124
1994	1.89	2272
1995	2.12	2583
1996	2.29	2832
1997	2.37	2889
1998	2.36	2948
1999	2.48	3009
2000	2.65	3460
2001	2.54	3198
2002	2.38	3103
2003	2.73	4463
2004	3.46	6170
2005	3.92	7493
2006	4.45	8634
2007	5.08	10729
2008	5.28	11832
2009	5.17	11136
2010	5.78	14193
2011	6.31	16564
2012	6.58	17737
2013	6.97	18445
2014	7.68	20236
2015	8.03	21071

Source: Author’s Compilation based on secondary data from Ministry of Tourism, Govt. of India and Indian statistics website

Foreign tourist arrivals increased from 7.68 million in 2014 to 8.0.3 million in 2015 registering an annual growth of 8.1 per cent over the previous year. By 2025, Foreign Tourist Arrivals in India is expected to reach 15.3 million, according to the World Tourism Organisation.

Figure 1: No of Foreign Tourist Arrivals (FTA’s) to all states/UT’s in India

Source: Author’s Compilation based on secondary data from Ministry of Tourism, Govt. of India. and Indian statistics website

5.2. Foreign Exchange Earnings:

Fee from tourism has also increased significantly from 1991 to 2015. (Table 3 and Figure-2) However FEE’s felt the repercussions of the economic recession in 2009 however a sudden increase of 18.1per cent in 2010 reflects the resilience that tourism has and the revival that it has brought in the economy. The Foreign Exchange Earnings (FEEs) from tourism during 2015 were US $21071 million with a growth of 9.6 per cent.

FTAs and FEEs in India have seen somewhat of a dramatic turnaround since 2002 with a temporary declining trend has been reversed aggressively. This turnaround has been the result of several policies schemes and initiatives by Government of India such as “Incredible India” campaign, the tourism industry’s constant search for new destinations, and to some extent improvement in infrastructure in specific areas such as better air connectivity of smaller and remote destinations.

Figure 2: Foreign Exchange Earnings (FEEs) From Tourism in India in (Us $Millions)

Source: Author’s Compilation based on secondary data from Ministry of Tourism, Govt. of India and Indian statistics website.

There has been substantial growth in domestic and foreign tourists in India over the last two decades.

5.3. Domestic Tourist Visits:

Domestic tourism plays an important role in overall tourism development in the country. Table - 4 and Figure -3, shows an uninterrupted increase in tourist flows from 1994 to 2016. There have been some fluctuations in the tourist arrival from one period to another period but there is no negative percentage growth from 1994 to 2016 which is a positive indication of bright future of tourism industry. The rise in domestic tourism is a symbol of increasing mobility of Indian travellers, enhanced spending power, better connectivity, affordability and a gradually evolving mind-set of Indian consumers, which motivates them to venture beyond their home towns. In 2009, when the country witnessed a negative growth of 2.2 per cent in FTAs, domestic tourist visits (DTV’s) registered a growth of 18.8 per cent. This growth of DTVs sustained various tourism infrastructures during bad period for the tourism sector.1613.55 million domestic tourist visits were recorded in India during 2016 as compared to 1431.97 million in 2015, with a 12.7 per cent change over the previous year. Domestic travel revenues are anticipated to increase around USD 203.3 billion by 2026.

5.3. Foreign Tourist Visits:

Most promising sign of growing contribution of tourism has been the much awaited increase in the number of foreign tourist visits (FTVs) in India after 2002. The number of foreign tourist visits (FTV’s) increased from 3.15 million in 1991 to 24.71 million in 2015, with a 5.92 per cent change over the previous year(Figure-4). Revenues earned from foreign visitors are projected to increase to US$40.11 billion by 2026.

Table-4: No Of Foreign Tourist Visits (FTV’s) and Domestic tourist visits DTV’s) to all states/UT’s in India, 1991-2015

Year	No Of Foreign Tourist Visits (In Million) To India	No Of Domestic Tourist Visits (In Million) To India	No Of total Tourist Visits (In Million) To India
1991	3.15	66.67	69.82
1992	3.09	81.45	84.54
1993	3.54	105.81	109.35
1994	4.03	127.12	131.15
1995	4.64	136.64	145.14
1996	5.03	140.11	145.14
1997	5.50	159.88	165.38
1998	5.54	168.20	173.74
1999	5.83	190.67	196.50
2000	5.89	220.11	226.00
2001	5.44	236.47	241.91
2002	5.16	269.60	274.76
2003	6.71	309.04	315.75
2004	8.36	366.27	374.63
2005	9.95	392.01	401.96
2006	11.75	462.32	474.07
2007	13.26	526.56	539.82
2008	14.38	563.03	577.41
2009	14.37	668.80	683.18
2010	17.91	747.70	765.61
2011	19.50	864.53	884.03
2012	18.26	1045.05	1063.31
2013	19.95	1145.28	1165.23
2014	22.57	1281.95	1304.52
2015	22.33	1431.97	1454.3
2016	24.71	1613.55	1638.26

Source: Author’s Compilation based on secondary data from Ministry of Tourism, Govt. of India and Indian statistics website

Figure 3: No Of Domestic Tourist Visits (in million) To India

Source: Author’s Compilation based on secondary data from Ministry of Tourism, Govt. of India and Indian statistics website

To sum up, the tourism industry in India has come a long way from just 15,000 tourists in 1950 to 1638.26 million in 2016 (Figure-6). Total tourist visits in various states of India over a five year period reveal that States such as Tamil Naidu, Uttar Pradesh, Andhra Pradesh Karnataka and Maharashtra will continue to be the principal visitor generating market, while Tripura, Madhya Pradesh, West Bengal, Gujarat, Rajasthan, Uttarakhand, Bihar Punjab Delhi, Chhattisgarh Himachal Pradesh and Jammu and Kashmir has the potential to be the next major visitor generating market (Indian statistics report, 2017).

Figure -4: No Of Foreign Tourist Visits (in million) To India

Source: Author’s Compilation based on secondary data from Ministry of Tourism, Govt. of India and Indian statistics website

Figure -5: No Of Total Tourist Visits (In Million) To India

Source: Author’s Compilation based on secondary data from Ministry of Tourism, Govt. of India and Indian statistics website

CONCLUSION:

The tourism industry has emerged as one of the fastest growing sectors contributing significantly to global economic growth and development. It has been making a revolutionary and significant impact on the India Economic scenario over the last two decades. Tourism is one economic sector in India that has the potential to grow at a high rate and has the capacity to capitalize on the country’s success in the services sector and provide sustainable models of growth. It is believed that India’s competitive advantage lies in its mystical attractions with its ancient civilization and culture. The country has much to offer with attractions ranging from the world’s highest mountains, vast coastline with excellent beaches, rich tropical forests, captivating wild life, desert safari, lagoon backwaters, ancient and majestic monuments, forts and palaces, diverse culture, colourful fairs, folk arts, unique hospitality etc. Indian tourism has vast potential for generating employment and earning large sums of foreign exchange besides giving a fillip to the country’s overall economic and social development. Over the two decades, statistical data on domestic and foreign tourist visits to India has shown a rapid increase. FTAs and FEEs in India have also seen somewhat of a dramatic turnaround since 2002 with a temporary declining trend has been reversed aggressively. The future outlook is bright for the tourism sector, and the region is expected to maintain a high rate of growth well into the next century. The paper contributes to an improved understanding of economic growth of a country because of tourism.

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Received on 31.05.2018 Modified on 09.07.2018

Int. J. Rev. and Res. Social Sci. 2018; 6(3): 267-272 .

DOI: 10.5958/2454-2687.2018.00026.6

Year	ITA’s (in millions)			Percentage (%) share and rank of India in world.		Percentage (%) share and rank of India in Asia and the Pacific.
Year	World	Asia and the Pacific	India	% share	Rank	% share	Rank
2013	1087.0	249.7	6.97	0.64	41st	2.79	11th
2014	1134.0	264.3	13.11	1.15	24^th	4.86	8th
2015	1184.0	278.6	13.28	1.12	24^th	4.72	7th
2016	1235.0	308.7	14.57	1.18	24th	4.72	8th