Tourists take a photograph at the Taj Mahal monument in Agra, India. (Image via X)

India’s sustainable-tourism market was valued at $26.01 million in 2022 and is expected to rise to $151.88 million by 2032 at a compound annual growth rate (CAGR) of 19.3%, according to a report titled ‘Sustainability in Tourism’ by The Federation of Hotel and Restaurant Associations of India (FHRAI), KPMG and the PHD Chamber of Commerce and Industry (PHDCCI). The global sustainable tourism market size was estimated at $2.73 trillion in 2023 and is projected to hit around $9.17 trillion by 2032, registering a CAGR of 14.40% during the forecast period from 2023 to 2032.

The report’s Executive Summary adds that this growing market also has the potential to boost the services sector and ensure long-term development. The integration of sustainable tourism principles across all tourism forms and destinations is considered essential for making the sector more responsible and resilient.

This report delves into the critical need for integrating sustainability into the heart of the tourism sector. It provides a comprehensive analysis of sustainable tourism in India, outlining the impact of the COVID-19 pandemic on tourism, the recovery trajectory, and the strategic focus on sustainable tourism. It highlights the necessity for integrating sustainability across all tourism activities to ensure the sector’s resilience and responsibility. With a projected, significant growth in the sustainable tourism market, the document emphasises embracing sustainable practices, enhancing digital infrastructure, and fostering community-based tourism models. It aims for a balanced approach to development, prioritising economic growth alongside environmental stewardship and social inclusiveness. The report also outlines actionable pathways for stakeholders to adopt sustainable practices, ensuring the long-term viability of tourism in India while preserving its rich cultural and natural heritage for future generations.

The transition to a sustainable tourism model presents multifaceted challenges, including environmental degradation, economic vulnerabilities, and socio-cultural disruptions. This report provides recommendations for promoting sustainable tourism in India, encompassing community-level interventions, development of tax strategies for sustainability, leveraging supply chains, and mainstreaming sustainability practices within the tourism sector. These recommendations aim to mitigate challenges and capitalise on opportunities for sustainable growth. India was ranked 54th on the World Economic Forum Travel & Tourism Development Index (2022) and sixth in terms of travel and tourism’s total contribution to gross domestic production (GDP) in 2021 according to the World Travel and Tourism Council. In terms of economic contribution, the sector contributed 5.8% to GDP and created 32.1 million jobs, which is equivalent to 6.9% of total jobs in 2021. In 2018 and 2019 India has seen 10.56 million and 10.93 million Foreign Tourist Arrivals (FTAs) respectively. This number dipped to 2.74 million in 2020 and 1.54 million in 2021, primarily due to the lockdown. However, there was a sharp increase in the numbers of domestic travellers and foreign visitors in 2022 due to easing restrictions and opening of international borders. India witnessed 6.43 million FTAs (as of September 2023) recording an annual growth of 305.4% in 2022. In the same year, the domestic tourist visits (DTVs) recorded 1.73 billion, providing an indication towards recovery. Going forward, it is estimated that India’s tourism sector will achieve the pre-pandemic level of foreign exchange earnings of $30 billion and 15 million foreign arrivals by mid-2024, totalling a $50 billion GDP contribution from tourism.6 By 2028, India’s tourism and hospitality industry is projected to generate revenue of over $59 billion while FTAs are anticipated to reach 30.5 million. As indicated by these projections, the outlook for India’s tourism sector remains optimistic, with potential for significant contribution to the country’s economic recovery and sustainable development.

Another report on ‘Heritage tourism as a tool for sustainable development’ in India, underscores that sustainable tourism is not merely an individual goal but a collective responsibility, with heritage tourism serving as a potential conduit towards its realization. The report by the PHDCCI and KPMG in India states that the country has immense opportunity of developing its heritage tourism with its bountiful rich history, culture and extensive regional vastness that creates a rich cultural stock ready to be explored. The demographic vastness has the potential to support the market demand. Therefore, developing heritage tourism sustainably can unlock India’s vast and diverse tourism market, creating avenues for growth and development.