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326 Economic Survey 2021-22

Tourism Sector
9.30 In normal times, tourism sector is a major contributor to GDP growth, foreign exchange
earnings and employment. However, the Covid-19 pandemic has had a debilitating impact on
world travel and tourism everywhere, including India.

9.31 According to the World Tourism Barometer of the United Nation’s World Tourism
Organization (January 2021), International Tourist Arrivals (ITA) declined by 74 per cent
globally in 2020 over the previous year, with restrictions on travel, low consumer confidence
and a global struggle to contain the Covid-19 spread. ITA had reached a total of 1.5 billion in
2019, and reduced to381 million in 2020, leading to an estimated loss of US$ 1.3 trillion in
export revenues. This weakness in international tourism has continued in 2021. During January-
September 2021, ITA worldwide was 20 per cent lower than the same period in 2020 and 64 per
cent below 2019 levels.
9.32 The resumption of international tourism will continue to depend largely on a coordinated
response among countries in terms of travel restrictions, harmonized safety and hygiene protocols
and effective communication to help restore consumer confidence. This is particularly critical at
a moment when cases are surging in some regions and new Covid-19 variants are emerging in
different parts of the world.
9.33 To contain the spread of virus, the Indian airspace regulator, Director General of Civil
Aviation (DGCA), had suspended all commercial international flights in March 2020. This
restriction has been extended till February 28, 2022. However, special international flights have
been operating under the Vande Bharat Mission to help expats fly back home under special
diplomatic arrangements (air travel arrangements) with various countries since May 2020. At
4
present, India has transport bubbles with 35 nations . Under this Mission, which is currently in
5
its 15 phase, over 47,000 inbound and outbound flights have been operated as on December 31,
th
2021, carrying over 63.55 lakh passengers.
9.34 At the time of writing, new restrictions were being introduced worldwide due to the spread
Omicron variant of the Covid-19. Thus, the trajectory of tourism sector, especially international
tourism remains uncertain.
IT BPM Services

9.34 The Information Technology-Business Process Management (IT-BPM) sector is a major
segment of India’s services. During 2020-21, according to NASSCOM’s provisional estimates,
IT-BPM revenues (excluding e-commerce) reached US$ 194 billion, growing by 2.26 per cent
YoY, adding 1.38 lakh employees.

4 “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.
5 Afghanistan, Australia, Bahrain, Bangladesh, Bhutan, Canada, Ethiopia, Finland, France, Germany, Iraq, Japan,
Kazakhstan, Kenya, Kuwait, Maldives, Mauritius, Nepal, Netherlands, Nigeria, Oman, Qatar, Russia, Rwanda,
Saudi Arabia, Seychelles, Singapore, Sri Lanka, Switzerland, Tanzania, Ukraine, UAE, UK, USA, Uzbekistan.