The tourism sector has the potential to resolve 50 per cent of the country’s employment challenges with the right government support, Lemon Tree Hotels Chairman and Managing Director Patanjali Govind Keswani said on Saturday.
Delivering his address at the first National Conclave on India 2047, organised by IIM Calcutta, he said India’s tourism sector is on the verge of hitting the inflexion point.
Keswani pointed out that several countries have seen that the tourism sector contributes as much as 15-20 per cent to their GDP and account for 25 per cent of employment.
“If the government can leverage this opportunity effectively, it could address up to 50 per cent of our employment challenges,” he said.
Discussing India’s current economic landscape, Keswani remarked that the country is at a critical juncture, similar to where China was during its rapid growth phase.
He highlighted that even household incomes in India grow at a rate of 6-7 per cent annually, setting the stage for a significant shift in discretionary consumption patterns.
“India has 280 million households, but currently, only 5 million householdsless than 2 per centare active consumers of discretionary goods like SUVs and hatchbacks,” Keswani said.
“However, with continued economic growth, this number could increase to 30 million households, which would represent a substantial boost in the economic activities. This is precisely the kind of transformation that occurred in China and is now happening in Vietnam, ” he said.
Keswani cited several positive indicators of India’s economic momentum, including the expected addition of 1,500 aircraft in the next five years, the doubling of airports, the tripling of runways, and the doubling of four-lane highways over the next four years.
“This expansion in connectivity is a tremendous opportunity for tourism in India, one that we haven’t witnessed in the last 75 years,” he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 10 2024 | 8:08 PM IST
