With India looking to become a one trillion-dollar tourism economy by 2047, the Ministry of Tourism is looking to draw domestic as well as foreign investment in the sector to help meet the ambitious target.
With this objective in mind, the Ministry of Tourism is organising the maiden edition of the Global Tourism Investors’ Summit (GTIS) in New Delhi later this year in partnership with investment promotion agency Invest India and Confederation of Indian Industry.
The event is expected to attract investments in different segments including hotels, theme parks, amusement parks, skiing destination infrastructure and skill development.
India’s tourism minister, G Kishan Reddy, said: “GTIS will help to position India as an ideal investment destination for tourism and hospitality projects. The participating Indian states will be able to showcase their investment-friendly projects to potential investors at the event.”
Reddy made the remarks while speaking at a recent roadshow in New Delhi organised as a precursor to GTIS. A senior official from the ministry present at the roadshow did not divulge details of expected investors at GTIS when asked by TTG Asia.
As per the estimates of the Federation of Associations in Indian Tourism & Hospitality, India will require an additional supply of five million rooms by 2047. This will require an investment of about US$300 billion.
However, for this ambition to come true, industry stakeholders say there is a need to make policy changes, such as introducing single-window clearance for projects and simplifying licensing regime to create a conducive environment for investment.
“Single-window clearance for hotel projects will improve operational ease. The number of licenses required to run a five-star hotel is somewhere between 35 and 45 in one year, which is a major challenge. Such bottlenecks have to be addressed to attract investment in the sector,” opined Kush Kapoor, CEO, Roseate Hotels & Resorts.
India also needs a cruise tourism policy, remarked Ratna Chadha, co-founder and chairperson, TIRUN Travel Marketing – the India representative of Royal Caribbean Cruises.
“At present, we have different policies in different states where a vessel is going through. A standardised policy across the states will help to attract investors,” she added.
India currently allows 100 per cent foreign direct investment (FDI) in tourism construction projects, including the development of hotels, resorts and recreational facilities. According to Ministry of Tourism statistics, in the last eight years from 2014 to 2022, India has received FDI inflows worth US$9.2 billion in the hotel and tourism sector.