India climbs 12 places to 40th in WEF’s Travel and Tourism ranking

India has moved up 12 places to 40th position from 52nd in the Travel and Tourism Competitive Index (TTCI) of the World Economic Forum, the latest report released on 5 April showed.

The figures are supported by World Travel and Tourism Council (WTTC) research, which suggests that between 2016 and 2026, the top 10 fastest-growing destinations for leisure travel spending are expected to be India, followed by Angola, Uganda, Brunei, Thailand, China, Myanmar, Oman, Mozambique and Vietnam, WEF said.

Over the last three years India has cumulatively improved its ranking by 25 places, which is a significant achievement, minister of state for tourism and culture Mahesh Sharma pointed out.

The tourism sector in the country has been on a growth trajectory with its ranking in WEF's Travel and Tourism Competitive Index moving up from 65rd position to 52nd position in 2015. Now India has moved up by another 12 positions and is ranked at 40th position.

India continues to charm international tourists with its vast cultural and natural resources with a ranking of 9th and 24th respectively which are the USPs of Indian Tourism product while, in terms of price competitiveness advantage, India is ranked 10th, he pointed out.

In terms of International openness, India is ranked 55th, up 14 places, he said, adding that this has been made possible through stronger visa policies - implementing both visas on arrival and e-visas.

The T&T sector also benefited from improvements in the country's ground transport infrastructure, which has traditionally been a challenge (29th). India is taking small but important steps in the right direction. The Indian T&T sector presents significant opportunities that are yet to be reaped.

The World Economic Forum has, for the past 11 years, engaged leaders in travel and tourism to carry out an in-depth analysis of the Travel and Tourism competitiveness of 136 economies across the world. 

The Travel and Tourism Competitiveness Index measures ''the set of factors and policies that enable the sustainable development of the travel and tourism sector, which in turn, contributes to the development and competitiveness of a country''.  The Travel and Tourism Competitiveness Index enables all stakeholders to work together to improve the industry's competitiveness in their national economies.

Foreign tourist arrivals (FTA) in India, have steadily increased from 6.97 million in 2013, to 7.68 million in 2014, 8.03 million in 2015 and 8.89 million in 2016, showing a combined average growth rate of 8.45 per cent against the international growth rate of 4-5 per cent.

Foreign tourist arrivals recorded a growth of 16.5 per cent in January 2017 compared to January 2016. FTAs during the period January- February 2017 were 1.94 million with a growth of 14.7 per cent, compared to the FTAs of 1.69 million in January-February 2016.

Foreign exchange earnings (FEE) from tourists rose from $18.45 billion in 2013 to $20.24 billion in 2014, $21.07 billion in 2015 and $23.15 billion in 2016, showing a CAGR of 7.86 per cent against a contraction of 5 per cent in international tourism receipts.

According to WEF, the number of people on the move is unprecedented, with international tourist arrivals increasing from just 25 million in the 1950s to 1.2 billion in 2016.

''Historically, travel was a luxury, but thanks to lower barriers to travel and falling costs, it is now within the reach of millions. These factors, combined with the growth of disposable income, the rise of the middle class in many emerging markets, and changing attitudes towards travel, have enabled the industry to flourish.

''The global middle class is forecast to grow by a further 3 billion people between 2011 and 2031, the majority of whom will come from emerging markets, with China and India leading the way. While travel is already booming in China, it is estimated that only 4 per cent of Chinese nationals have passports. Similar trends are apparent in other emerging markets. What is clear is that these new travellers, like millennials and baby boomers before them, are looking for experiences.

While North America and Europe dominated travel markets dominated in the previous decades, this may not be the case for much longer. By 2030 most of the growth in international travel will come from Africa, Asia and the Middle East, which will enable further growth and job opportunities in these regions, WEF pointed out.

Although markets in Europe and the Americas will continue to grow, the rate is incomparable to other regions. In fact, since the global financial crisis, tourist expenditure from developing countries has grown faster than from advanced economies – a trend that is on track to continue.

In the past, the majority of travel was north to north, but this reality is changing. Outbound travel from Africa, the Middle East and Asia-Pacific is expected to grow exponentially in the coming decade.

Developing and emerging markets are not only becoming larger source markets, but are also improving their own travel and tourism offers to position themselves as more attractive destinations, thus helping their industries develop further.