India’s tourism and hospitality sector is poised for significant growth, with an estimated need for 61 lakh additional professionals over the next decade to meet rising demand, according to a joint report by the Confederation of Indian Industry (CII) and Ernst & Young (EY).
The whitepaper, titled “Employment Landscape in Tourism and Hospitality in India,” highlights the sector’s robust recovery following setbacks from the COVID-19 pandemic, driven primarily by the resurgence of domestic tourism. Currently contributing to 8% of India’s total employment, the sector is projected to experience sustained growth with spending expected to increase by 1.2 times by 2034.
Future Skills and Workforce Development
The report emphasizes the need for specialized skills to align with evolving industry demands. Key areas of focus include digital marketing, sustainable tourism practices, and enhanced customer service. It recommends innovative measures such as gamified Learning Management Systems (LMS) for ongoing professional development and clear career advancement pathways through collaborations with industry associations.
To standardize education and skill development, the report suggests the establishment of a dedicated task force under the Ministry of Tourism. Additionally, incentivizing workforce participation—particularly among women—along with harnessing emerging opportunities such as medical tourism, is critical to meeting future requirements.
India’s Global Standing
India’s position on the World Economic Forum’s Travel & Tourism Development Index improved to 39th in 2024, up from 54th in 2021. The sector’s direct contribution to the nation’s GDP reached $231 billion in 2023, making India the second-largest contributor to tourism GDP in the Asia-Pacific region.
A Decade of Opportunity
The CII-EY report reflects the sector’s importance in driving economic and social progress, underlining the necessity for strategic workforce planning and investment in skill development. By meeting these challenges, India is well-positioned to capitalize on the expanding opportunities in tourism and hospitality, reinforcing its status as a global tourism leader.
