ROLE OF TOURISM SECTOR IN ECONOMIC DEVELOPMENT

ABSTRACT

The tourism and travel industry is the greatest and most different industry known to economy. Now, in the perspective of tourism and hospitality sector in Indian scenario of economy contributes 6.8% of GDP. Therefore, for a country with 30 world heritage sites and a rich culture, tourism and hospitality industry has great potential to enhance tourist flow and accelerate economic growth due to multiplier effect of tourism on job creation. Moreover, there are many success stories of Kerala and Gujarat as a case of focused approach towards tourism. Recently, Gross Domestic Capital formation was found to have highest correlation with foreign tourist arrivals. Here it is noteworthy that growth rate of foreign tourist arrival is found to have significant positive correlation with growth rate of service sector in India and gross state domestic product of Kerala and Gujarat. Meanwhile, overall contribution of tourism and hospitality to the GDP had already grown at a CAGR of 10% from 2006 to 2014. After it, the consist rise in contribution of tourism and hospitality shows the potential of the tourism industry to accelerate economic growth with a supportive policy framework, better infrastructure, and law and order situation. Actually, most of the scholars have concluded that the effect of tourism on expanding business and unfamiliar trade profit, the blast in homegrown enterprises, the extension of worldwide collaboration have switched the perspectives of nations up the world and assumed a significant part in the policy making of Governments. So the motivation behind this exploration paper is to examine the impact of foreign tourism receipts development on the growth rate of Indian economy during the time of 2000-2019. Most of the studies have proved that there is a positive connection between financial development rate and development of unfamiliar tourism income development of our economy in the recent years. The present research paper is descriptive in nature and both types of data (primary and secondary) have been used to pace the study. The objective of this research paper is to point out the role of tourism sector in economic development of India.

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