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Tourism is a complex phenomenon which encapsulates a varying number of services and
processes. It is not an industry or a sector in the traditional sense, rather it is an economic
activity that runs through all of the society involving very different and varied sectors
pushed forward by market forces, controlled by regulatory framework and governed by
general economic conditions. In many countries and regions, tourism is significantly
important to the economy because it attracts tourists who bring spending power.
For many regional economies, tourism can bring about an encouraging response to the
regional development considering its positive influence on regional employment and
income. According to World Travel and Tourism Council (WTTC), travel and tourism
is an important economic activity in most countries around the world. It has a direct as
well as a significant indirect and induced economic impact. The UN Statistics Division’s
approved Tourism Satellite Accounting methodology quantifies only the direct contribution of travel and tourism. But WTTC recognizes that the total contribution
(considering direct, indirect and induced impacts) of travel and tourism to GDP is
three times greater than its direct contribution. According to WTTC’s annual report on
Economic impact of tourism in India in 2006, the direct contribution of travel and
tourism to India’s GDP was 1,236.7 bn. It reached 1,919.7 bn (2% of GDP) in
2012, and it is expected to grow by 7.8% pa to 4,360.6 bn (2.1% of GDP) in 2023.
In 2006, the total contribution of travel and tourism to GDP was 4,280.5 bn.
It reached 6,385.1 bn in 2012 (6.6% of GDP) and is forecasted to rise by 7.9% pa to
14,722.3 bn in 2023 (7% of GDP).
Tourism directly generates employment in its own sector as well as via indirect and
induced effects in the connected sectors of the economy. According to WTTC, travel
and tourism generated 24,477,4000 direct jobs in India in 2006, and 25,041,000
direct jobs in 2012 (4.9% of total employment in the country). It is forecasted to account
for 30,631,000 direct jobs by 2023, an increase of 2.1% pa over the next 10 years. The
total contribution of travel and tourism to employment is much more than the direct
contribution. It generates huge employment opportunities in various other sectors and
hence provides a source of income to millions of countrymen every year. The total
contribution of travel and tourism to employment was 43,210,300 jobs in 2006 and
39,512,000 jobs in 2012 (7.7% of total employment in the country), and is expected
to generate 48,592,000 jobs (8% of total employment in the country), an increase of
2.1% per annum over the period in 2023.
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