Indian economy is booming, Foreign Exchange reserves is strong over $103 billion and rising, inflation is down; there is a great feeling of hotels bloom for tourism in every field. This feel good factor is also equally visible in tourism scene. Positive sentiments driven by infrastructural development especially in accommodation sector likely to bring more tourism investments. Tourist arrival figures crossed 3.9 million in 2005 and in 2006 it will be around 5million... Tourism earnings have increased substantially. As per Ministry Of Tourism recent reports Foreign Exchange earnings estimated around,5 Billion[ it is Rs.25172.00 cores], an increase by 31.5% over 2004. Tourist arrivals increased by 13.2 % and seeing the trend an year on growth of minimum 15% can be expected. The confidence comes based on the feed back from tourists who had been to India.
After growing at 8.5%&6.9% in 2003 and 2004 the economy is expected to grow 7.5% in 2005-06.A faster growth is expected to boost salaries.
By inflation adjusted 7% this year, fuelling robust consumer spending. To put the projection in perspective though, India remains.
Only the world's 12th largest economy in real terms, and its one billion plus population makes it one of the world's poorer nations in terms of per capita income.
The year 2005 as a whole saw foreign exchange earning from tourism about 20% higher than the previous years levels. As per the data received from the Ministry of Tourism total foreign exchange earnings from tourism for the forth quarter of 2005 amounted to US$1.8 million compare to $ 1.6 billion in the same period of the pervious year. However, India became net foreign exchange looser on account of tourism of late as foreign currency spent on outbound travel by Indians is much higher than foreign exchange earned from inbound tourism.
Spending by international visitor on credit cards showed increased trend. International visitor spent dollar 372 million on their visa cards in the forth quarter of 2005. Visitors of UK, US, France, Australia & Germany collectively accounted for 63 % of total visa spending by international card holders, as per visa international reporting.
Pro Active Government
Ministry of Tourism is also playing a perfect role since the beginning of the new millennium which in turn has resulted in a commendable growth of the tourism sector. Investments, participation, jobs, profits in the sector have grown substantially. With increasing spending power of people the domestic tourism is also on the rise and foreign tourist numbers have reached an all time high. Department is also working out to give enhanced incentives for improvement of infrastructural facilities. Tourism is also getting priority attention in the state sectors also.
Ministry of Tourism is now promoting unexplored region of the Northeast region one can enjoy virgin beauty, Northeast initiatives include global campaign domestic campaign and educational tours of tour operator's media members from overseas. Tourist circuits of Manas-Guwahati-Kaziranga, and Dhubri and Goalpara and Guwahati, Silchar and Karimganj have received a grant of Rs. 781 lakh and Rs. 432 lakhs respectively. Guwahati also has been declared an international airport where Air India now operates.