-Charu Nayak[1]


-Ronak Bansal [2]


Tourism is critical to the success of many economies worldwide. Tourism has a number of advantages for host cities. Tourism increases economic revenue, creates thousands of jobs, improves a country’s infrastructure, and fosters a sense of cultural exchange between different economies.

Tourism has grown to be an important industry with an impact on the growth of the country’s economy. The main advantages of tourism are the generation of income and the creation of jobs. It is the most important source of income for many regions and countries.

The national economy’s ability to benefit from tourism is dependent on the availability of investment to develop the necessary infrastructure as well as its ability to meet the needs of tourists. India has the potential to develop seaside tourism and other alternative forms of tourism.

The purpose of this paper is to present the impact of tourism on the economy, particularly on income. The purpose of this paper is to present the impact of tourism on the economy, particularly on income. This paper discusses the various objectives, Tourism in contrast with Digitalization, covid-19, Income generation and much more. Paper also comprehends tourism impacts, benefits and cost, problems faced by tourism industry and various majors to prevent it. Also, we have discussed our key ideas on promoting and saving tourism


The tourism industry in India is considerable and lively, and the nation is quick turning into a significant worldwide objective. India’s movement and the tourism industry is perhaps the most beneficial businesses in the nation, and furthermore credited with contributing a generous measure of unfamiliar trade. This is shown by the way that during 2017, 4,000,000 travelers visited India and spent US $8.9 billion.

Today Indian economy relies a great deal on its tourism industry area which is a significant piece of it. “It is a treat to watch such sort of solidarity” commented the Leader of India at the introduction of fifth worldwide travel.

India’s tour & travel industry crossed 3 million imprints (3.37 million) in number of appearances or unfamiliar sightseers showing a noteworthy development of 24 % over the earlier year. The complete commitment of this area, immediate and roundabout, to Indian Gross domestic product is around 5.83%.

This area is straightforwardly and in a roundabout way connected to numerous different areas in the economy. A development in the tourism industry influences businesses like painstaking work, handlooms, transportation (mostly avionics), land (or foundation) and some more. One of the significant areas to which the travel industry is connected to is Land. Both these areas act corresponding areas to one another. More the quantity of vacationer appearances more is the prerequisite of better foundation, inn, eateries, houses and so forth The highlight be noted here is that this land area isn’t a stands alone area. It is additionally connected to in excess of 200 unique areas like concrete, steel, glass, electrical, water supply, carpentry, transportation and some more.

Another significant part of the travel industry is the business openings joined to it. The travel industry is the biggest boss on the planet. In India, the immediate work from the travel industry adds to 4.59% of the complete work in the country. Adding the backhanded work to it, the figure goes up to 8.27% for example the complete business created by the business in India is around 40 million. Additionally, half of this business produced is circuitous. This implies that the development in this industry emphatically affects the work in different enterprises too.

  • Objective

Tourism is the world’s largest industry and one of the objectives of tourism development is economic gain. This is not a narrow matter of private sector providers of tourism services making a profit.


The saying ‘tourism destroys tourism’ is well known: protection of the environment is essential in areas that are subject to damage by tourist numbers. Thus the main environmental objective of tourism is as follows:

  • Habitat preservation
  • Regeneration and conservation of the build and natural environment
  • Environmental education
  • Environmental improvements

In economic terms the travel and tourism industry is able to do three key things:

  • It gives vigor to economies.
  • It offers people jobs and career prospects.
  • It stimulates development.

It does this through:

  • Creating employment direct and indirect
  • Increasing foreign currency earnings
  • Increasing visitor numbers and visitor spending within the local economy
  • Increasing income for commercial

You need to be aware of and understand how tourism development can affect the lives of people who live in the tourist destination. Tourism brings people of different countries together and we all need to increase our awareness and understanding of different cultures. Tourism can generate income and provide funds to keep traditional cultures alive and to improve the quality of life for the host population.

The main socio-cultural objectives of tourism development are:

  • To promote understanding of different cultures
  • To improve quality of life for the local population
  • To provide community facilities, as well as tourist facilities
  • To develop a sense of pride in traditional culture and identity.

Tourism & Economic Development-

Tourism is one of the most visible and rapidly growing sectors in the global economy. This industry is critical to a country’s economic growth. An increase in tourism flow can have a positive economic impact on nations, particularly in terms of GDP and job opportunities.

Tourism can directly create jobs through hotels, restaurants, nightclubs, taxis, and souvenir sales, as well as indirectly through the supply of goods and services required by tourism-related businesses. Tourism employs approximately 7% of the world’s workforce.

Tourism helps our economy by employing thousands of people, enriching our businesses, and funding critical public services like education and law enforcement. Every day, tourism benefits each of us. Tourism contributes to the operating costs and infrastructure of our local public education system.


The goal of cross-section analysis is to identify the relationship between tourism and economic growth across a range of countries at a given point in time.


Possibility of modeling different countries’ characteristics, such as membership in an organization or trading blog, oil exporting country,  geographical location, and investigating their impact on economic growth.


Because regression is applied over a single time period, it does not capture the dynamic aspects of the relationship between tourism and growth.

  • Data analysis using a dynamic panel

It enables the identification of long-run causal relationships between tourism and economic growth across multiple countries, rather than just one, through the integration of panel data analysis with core integration and the grandeur causality test.


Overcome cross-section analysis weaknesses by using time series data from a cross-section of countries and allows for the modeling of country-specific characteristics.

The main challenge is the consistency of statistical data across countries and over time.


Tourism generates revenue by attracting visitors to a location to experience its beauty and culture and having them spend money while they are there. Exporting a product from a country generates revenue as well.

As a result, for many countries, spending is equivalent to an export product.

Foreign currency purchased by foreign nationals in the form of dollars, pounds, and euros, and many other currencies, also contributes to the generation of income in the country.

 Tourism and its Impacts


  • Creating Income and Employment:

Tourism in India has emerged as a tool for generating income and employment, alleviating poverty, and promoting long-term human development. It accounts for 6.23 percent of national GDP and 8.78 percent of total employment in India. Almost 20 million people now work in the tourism industry in India.

  • Source of Foreign Exchange Earnings:

In India, tourism is a significant source of foreign exchange earnings. This has a positive impact on the country’s balance of payments. The Indian tourism industry generated approximately US$100 billion in 2008, and this figure is expected to rise to US$275.5 billion by 2018 at a 9.4 percent annual growth rate.

  • Preservation of National Heritage and Environment:

Tourism aids in the preservation of several historical sites by designating them as heritage sites. For example, the Taj Mahal, the Qutum Minar, the Ajanta and Ellora temples, and so on would have decayed and been destroyed if the Tourism Department had not worked to preserve them. Similarly, tourism contributes to the conservation of many endangered species’ & natural habitats.

  • Developing Infrastructure:

In addition to hotels and high-end restaurants that cater to foreign visitors, tourism tends to encourage the development of multi-use infrastructure that benefits the host community, such as various modes of transportation, health care facilities, and sports centers. Infrastructure development has resulted in the growth of other directly productive activities.

  • Promoting Peace and Stability:

According to Honey and Gilpin, the tourism industry can help promote peace and stability in developing countries like India by creating jobs, generating income, diversifying the economy, protecting the environment, and promoting cross-cultural awareness. However, if the peace-enhancing benefits of this industry are to be realized, key challenges such as the adoption of regulatory frameworks, mechanisms to reduce crime and corruption, and so on must be addressed

  •  Tourism Benefits &  Source Benefits

• Employment opportunities-professional and unskilled due to the fact it’s far a hard work in depth industry

• Increase incomes

• Is constructed on present infrastructure

• Helps to expand new infrastructure that stimulates neighborhood trade and industry

• Helps to diversify the economy

• Spreads development

• Has a excessive multiplier impact

• Increases governmental revenues

• Broadens academic and cultural horizons

• Reinforces maintenance of historical past and traditions

• Justifies environmental safety and improvement

• Provides employment for artists, musicians and acting artists, improving cultural historical past

• Provides visitor and leisure centers that can additionally be utilized by the neighborhood population

• Helps to interrupt down barriers: socio-cultural-class-racial-political, and religious

• Creates a positive world-extensive picture for the destination


• Develops excess demand for resources

• Creates difficulties related to seasonality

• Causes inflation

• Can lead to unbalanced economic development-some communities versus others

• Creates social problems

• Degrades the natural physical environment and creates pollution

• Degrades the cultural environment

• Increases the incidence of crime, prostitution and gambling

• Increase vulnerability to economic and political changes

• Commercializes culture, religion and therefore the arts

• Creates conflicts within the host communities

• Contributes to disease, economic fluctuant and transportation problems

As with all change, tourism exacts a price. However, it is here, it is huge, and it has to be planned and managed. Our local Tourism Development Council, (TDC), is charged with the responsibility of the challenge to induce the correct balance, which is to possess the advantages outweigh the prices, and to require the mandatory steps to minimize the unfavorable impacts, that are a component of change. Tourism development must be part of overall economic development, and must be worn out a way that’s sustainable. Thus, for our own interests, it’s important that we all help to supply public input to the TDC.

Rank of Tourism In India

The Travel and Tourism Competitiveness Report 2019 ranked India 34th out of 140 countries overall. India improved its ranking by 6 places over the 2017 report which was the greatest improvement among the top 25% of countries ranked.

In 2019, the state with the highest domestic tourists was Uttar Pradesh, with over 535 million tourist visits.

Digitalization & Tourism

The traditional roles of tourism producers and consumers have also been transformed by digitalization, with new roles, relationships, business models, and competencies emerging. As tourism SMEs strive to meet consumer demands and enter new markets, these shifts have created new opportunities as well as challenges.

Tourism SMEs now have unprecedented opportunities to enter new markets, develop new tourism products and services, adopt new business models and processes, improve their position in global tourism value chains, and integrate into digital ecosystems as a result of digitalization.

Digital tourism offers a technologically advanced way for people to research, plan, and enjoy their vacation travels. People choose their destinations, activities, and other things based on the availability and variety of travel information, which is one of the reasons why digital tourism is important to both the industry and travelers.

Technology has made it easier to plan trips. Online, you can find all of the information that you need to plan the perfect trip. You can find all of the necessary information about your chosen destination by surfing the internet for a few hours.

Over the last decade, information technology has played a significant role in the hospitality and tourism industries. Technology has assisted in lowering costs, increasing operational efficiency, and improving services and customer experience. This not only helps to reduce labor costs, but it also helps to avoid customer service issues.

Problems of India’s Tourism Industry

In current time, when the world economy is turning out to be more globalized as time passes, it is as yet far to go for the Indian economy to accomplish reasonable the travel industry.

Lack of right infrastructure which incorporates non availability of right roads and negative connectivity to the traveler destinations.

Lack of competitive on line and different advertising and marketing techniques to sell India as a must go to location.


A portion of the significant barriers or obstacles for the appropriate improvement of the business are:

1. Lack of legitimate framework which incorporates non accessibility of good streets and helpless availability to the traveler objections.

2. Lack of forceful on the web and other advertising methodologies to advance India as an unquestionable requirement visit area

3. Too numerous places of separation accessible however not changed out upon (like uncommon creature safe-havens, strict journey visits and outrageous Himalaya visits)

4. Lack of assets because of which an extensive rundown of legacy landmarks that are as yet sitting in disgusting conditions and so on.

In current time, when the world economy is turning out to be more globalized as time passes, it is as yet far to go for the Indian economy to accomplish feasible the travel industry.

Then again, India is at the thresh¬old of approaching freedoms. The travel industry in India is one of those areas which are at present seeing far reaching development. Because of the expanding inbound the travel industry by the blossoming Indian working class. Rising inflow of unfamiliar sightseers into the Indian Domain alongside effective government lobbies for advancing ‘Mind boggling India’ height has done a great deal to foster the Indian the travel industry.

How Covid Affected Tourism?

The international is dealing with an remarkable international health, social and monetary emergency because of the COVID-19 pandemic. Travel and tourism is a number of the maximum affected sectors with a big fall of global call for amid international journey regulations inclusive of many borders absolutely closed, to comprise the virus.


First, let’s discuss how nearby and designated travel industry workplaces are trying to help the neighborhood travel industry. There are many things that are required to achieve a goal, and most of them are in the background.


Each neighborhood and provincial the travel industry office has a site. Some are more inside and out than others, however they as a rule have postings for similar classes: activities, housing, food and drink. This is the place where guests can discover the contact data for explicit attractions and organizations, just as pictures and depictions. Most sites likewise have occasion schedules that feature celebrations, exhibitions, even classes occurring across the area.


Most the travel industry workplaces actually convey a large number of printed leaflets through welcome places, thoroughfare stops and guest demands. Through exquisite photographs and enthralling language, guides or leaflets portray what a guest can anticipate. Numerous likewise offer promotion space assuming you need to hang out before an intrigued crowd.


When there is a declaration –, for example, another eatery around or a state park winning a public honor – the travel industry office will convey an official statement, which could get gotten by territorial or public distributions. It might even produce interest from media who need a meeting or travel journalists who need to encounter it for themselves.

Official statements are not restricted to nearby showcasing workplaces. Finger Lakes Provincial The travel industry Chamber (FLRTC), the authority advancement association for the 14-region Finger Lakes Get-away Area, disperses month to month official statements featuring territorial resources. Models incorporate exercises to commend the 100th commemoration of ladies’ testimonial and new the travel industry resources that opened over the most recent a half year.


The entirety of the various strategies recorded above give extraordinary substance to a travel industry office. Occasions, declarations, media arrangements and web journals can be shared across online media channels.


The travel industry workplaces can contact bigger crowds with a presence at famous occasions and displays. Contingent upon, the occasion, participants might be from another city or considerably another state. A significant occasion is the ideal spot to elevate its objective to a crowd of people that is now there, that might be new to the space and is doubtlessly searching for different activities. The TPA can share the best places to go, eat or rest, and hand out marked materials or security.

  • ADS

Advertising workplaces with bigger financial plans – think state the travel industry workplaces – run T.V. advertisements to elevate to both state-wide and out of state crowds. You may have seen ads from I Love NY, displaying different resources and attractions across the state – from equivalent rights history to fun outside exercises.


Identification of strength’s of villages in different states and introduction of customised trips like Cultural and Heritage walk in Rajasthan, Tribal tours in North-East India. Promoting Farm and home stays to provide local and humane touch to tourist.

Government Measure for Increasing Tourism

The tourism sector contributed an estimated (direct + indirect) 5.06 percent to the country’s GDP. The tourism was estimated to account for 12.38 percent of all jobs (direct and indirect). Tourism is estimated to have created an additional 13.92 million jobs (direct and indirect).

  • Central Financial Assistance to States/UTs through Swadesh Darshan, the National Mission on Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD), and assistance to Central Agencies for the development of tourism-related infrastructure in the country.
  • Citizens of 167 countries now have access to e-visas.
  • The Incredible India 2.0 campaign is being launched, with market-specific promotional plans and content creation.
  • The Incredible India website has been revamped in order to provide more information about India as a tourist destination.
  • Launch of a toll-free multilingual tourist helpline in 12 international languages, including Hindi and English, 24 hours a day, seven days a week.
  • Annual Global Tourism Mart for India, in conjunction with major international travel marts held in countries around the world. It serves as a platform for all stakeholders in the tourism and hospitality industries to interact and transact business.
  • The biennial International Buddhist Conclave is organized.
  • Annual International Tourism Mart for the promotion of tourism in the North Eastern States.
  • Promotional activities in tourist-generating markets overseas are carried out through India Tourism Offices abroad, including active participation in travel fairs and exhibitions, as well as the organization of Road Shows, “Know India” seminars and workshops.


In conclusion, this is a fantastic economic contribution to today’s economy. It is an excellent way for people to spend their money and for cities to attract newcomers. As a result, cities around the world attract millions of dollars just so that foreigners can experience life in a new place.

[1] Student of Indore Institute of Law

[2] Student of Indore Institute of Law