Page 687 - ES 2020-21_Volume-1-2 [28-01-21]

314 Economic Survey 2020-21 Volume 2

Tourism Sector
9.16 Tourism sector is a major engine of economic growth that contributes significantly in

terms of GDP, foreign exchange earnings and employment. However, the COVID-19 pandemic
has had a debilitating impact on world travel and tourism, including India. As per the World
Tourism Barometer of the United Nation’s World Tourism Organization (December, 2020
edition), international arrivals fell by 72 per cent globally over the first ten months of 2020, with
restrictions on travel, low consumer confidence and a global struggle to contain the COVID-19
virus, all contributing to the worst year on record in the history of tourism. World destinations
received 900 million fewer international tourists between January-October when compared with
the same period of 2019, translating into a loss of US$ 935 billion in export revenues from
international tourism. Note that International Tourist Arrivals (ITA) had reached a total of 1.5
billion in 2019.

9.17 Director General of Civil Aviation (DGCA), to contain the spread of the virus, had
suspended all commercial international flights in March 2020. The ban has been extended till

January 2021. In order to evacuate Indians stranded abroad after the breakout of the Covid-19
pandemic and the resultant lockdowns across the world, Vande Bharat Mission was launched in
early May. Under this Mission, which is currently in its ninth phase, the government established
Transport Bubbles with countries to repatriate its citizens. At present, India has active air
3
bubbles with 24 countries. As of January 5, 2021, over 4.49 million people were facilitated
international travel through different air ever since the Vande Bharat Mission was launched.

9.18 The tourism sector in India had been performing well with Foreign Tourist Arrivals
(FTAs) growing at 14 per cent to 10.04 million and Foreign Exchange Earnings (FEEs) at
19.1 per cent to US$ 27.31 billion in 2017. However, the sector underwent a slowdown in
2018 and 2019 before declining sharply in 2020 (Figure 2(a&b)). The Foreign Tourist Arrivals
(FTAs) in 2019 stood at 10.93 million compared to 10.56 million in 2018. In terms of growth,
the growth rate of FTAs declined from 14 per cent in 2017 to 5.2 per cent in 2018 and further
to 3.5 per cent in 2019. Foreign Exchange Earnings (FEEs) from tourism stood at US$ 30.06

billion in 2019 as compared to US$ 28.59 billion in 2018. In terms of growth, the FEEs
declined from 19.1 per cent in 2017 to 4.7 per cent in 2018, picking up slightly to 5.1 per cent
in 2019.

9.19 India ranked 23 in the world in terms of international tourist arrivals in 2019, falling slightly
rd
from the 22 position in 2018. The country accounts for 1.23 per cent of world’s international
nd
tourist arrivals and 4.97 per cent of Asia & Pacific’s international tourist arrivals (Table 7). India
ranks 12 in the world and 7 in Asia & Pacific in terms of tourism foreign exchange earnings,
th
th
accounting for over 2 per cent of the world’s tourism foreign exchange earnings.

3 “Transport Bubbles” or “Air Travel Arrangements” are temporary arrangements between two countries aimed
at restarting commercial passenger services when regular international flights are suspended as a result of the
COVID-19 pandemic. They are reciprocal in nature, meaning airlines from both countries enjoy similar benefits.