Sushma Ramachandran

Prime Minister Narendra Modi recently proposed the idea of round-the-year tourism for hilly states like Uttarakhand. His comments came on the heels of officials saying that domestic tourism, especially to religious sites, can spur economic growth. Chief Economic Advisor Anantha Nageswaran says the Mahakumbh would push growth in the fourth quarter of 2024-25 to 7.6 percent. Tourism thus has tremendous potential to become a significant revenue source for the economy in the future.

Much work is needed, however, to realize this potential. Intriguingly, relatively few international tourists arrive here despite the sub-continent’s varied attractions. These range from the snowy slopes of Gulmarg to the ancient monuments of Hampi to the scenic locales of Coorg. Not to mention the beaches of Goa and Odisha or the iconic Taj Mahal. There is a seemingly endless array of locations to visit in India. Yet fewer than ten million tourists arrive here annually compared to ten times that level in European countries like France. On the other hand, domestic tourism is thriving in the post-COVID era with religious sites topping the popularity charts.

The resurgence of religious tourism has been exponential after the “Pran Pratishtha” of the Ram Mandir in Ayodhya. Official data released recently shows that the number of visitors to the district has risen from about six million in 2020 to over 16 million in 2024. Reports have also surfaced that tourist numbers were higher for the Ram Mandir than for the iconic Taj Mahal in the first nine months of 2024. The Ayodhya phenomenon has been followed up by the rush of 55 to 60 crore pilgrims to the Maha Kumbh in Prayagraj during January and February. Uttar Pradesh is at the center of the spiritual tourism boom as Varanasi has also become part of the religious circuit.

The uptick in domestic tourism and the impact of the “huge spending” at religious sites like the Maha Kumbh, as mentioned by Nageswaran, are now recognized by policymakers as having the potential to raise growth. Such a realization has guided the tourism component in the 2025-28 budget proposals. These included a plan to transform as many as 50 destinations into world-class tourism hubs with a steep hike in the financial allocation for the sector.

It was raised nearly three times from the revised estimates of Rs. 850.36 crore in 2024-25 to Rs. 2541.06 crore in 2025-26. In addition, schemes to develop Buddhist circuits and medical tourism facilities have been outlined in the proposals.

The stress given to tourism development is welcome but overdue given the industry’s collapse during the pandemic. The fact that the sector has rebounded strongly has more to do with the strong revival in demand for tourism services in the post-Covid era rather than any governmental support. “Revenge tourism” is the term used to describe this phenomenon. The significance of the industry is evident from official data showing that it comprises five percent of GDP. But these statistics also highlight that its share in GDP had fallen to 1.5 and 1.75 percent in 2020-21 and 2021-22 respectively from 5.18 percent in 2019-20. Covid took a heavy toll on the tourism and hospitality industry.

It is thus heartening that more schemes are being planned to develop infrastructure for the tourism sector. Yet new schemes are not enough as there is a need to upgrade existing facilities for foreign tourists, who, are bypassing India for other destinations. The reasons for viewing India as a difficult holiday locale need to be examined and remedied without delay.

Interestingly, even the international media including publications like The Economist have commented on India’s failure to capitalize on its strengths as a tourist destination despite having 46 UNESCO World Heritage sites and tremendous natural beauty. It noted in an article recently, that even tiny Dubai easily mops up 14,7 million visitors annually while this continent-sized country has only touched a peak of 11 million tourists. The reasons cited are bureaucratic issues related to visas, outmoded websites, traffic, and pollution. However, those who do brave these hurdles end up having a good time.

In other words, it is time for Nageswaran to repeat the mantra of “get out of the way” of the bureaucracy dealing with tourism. As for government websites, it is surprising that a country renowned globally for information technology skills has to face criticism for hosting outmoded websites. This is an area that needs to utilize the expertise of private agencies to ensure a smoother experience for the potential visitor. On a more basic issue, sanitation and hygiene at leading tourist sites, including those operated by the Archaeological Survey of India (ASI) must improve. More resources must be poured into ensuring proper maintenance of the country’s innumerable heritage sites. With better infrastructure, these can easily become magnets for visitors.

Another area that can be a big draw for tourists is the establishment of museums. With the enormous inventory of artifacts available in both the National Museum and heritage locations, it should not be difficult to set up infrastructure to showcase these priceless items. These need to be set up throughout the country to highlight the country’s ancient culture and civilization in different regions. The world heritage site museum set up underneath the Humayun's Tomb by the Aga Khan Trust, for instance, is an eye-opener in terms of the display of artifacts and historical narration. And, one must not forget, this is just a sliver of history. India can host hundreds of such museums.

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Policymakers thus need to consider tourism as a key element in the development matrix. Only then will it be possible to allocate enough resources to upgrade facilities in this sector to meet the demands of international tourism? Till all these factors are attended to, however, the country will have to rely on domestic