Tourism Ministry engaging with World Bank for long-term funding to support states in their tourism development initiatives

The Ministry of Tourism is actively engaging with the World Bank to establish long-term financing arrangements aimed at supporting various states in their tourism development initiatives.

Tourism minister Gajendra Singh Shekhawat said Thursday that this financial collaboration is crucial for enhancing tourism across the country.

In addition, the ministry is working with the Ministry of External Affairs to grant visa-on-arrival status to key “source markets” that are significant for inbound tourism to India.

“I am in talks with the World Bank for a long-term finance arrangement to support states. For Jammu and Kashmir, we have worked out a scheme with the World Bank, the Government of India, and the J&K state government to develop three new tourist destinations with a project worth Rs 5,600 crorw,” Shekhawat said.

“Work has already started on this initiative to promote India as a global destination,” he added.

He was speaking at the 54th annual convention of the Federation of Hotel & Restaurant Associations of India (FHRAI).Data from the Reserve Bank of India (RBI) showed that lending to the tourism, restaurant, and hotel sector by 40 scheduled banks reached Rs80,570 crore as of August 2024, compared to Rs73,913 crore in August 2023, a 9% year-on-year increase, but 2% decline from August 2022.Currently, citizens of Japan, South Korea, and the United Arab Emirates (for those who have previously obtained an e-Visa or regular visa for India) are eligible for a visa on arrival among others.

According to the Ministry of Tourism, the number of foreign tourists visiting India from January to June 2024 was 4,778,374, an increase from 4,380,239 during the same period in 2023. However, this is slightly down from 5,296,025 in 2019, reflecting a growth of 9.1% compared to 2023 but a decrease of 9.8% compared to 2019. The top contributors to inbound tourism in India include Bangladesh, the USA, the UK, Canada, and Australia.

A report by Hotelivate showed that the Asia Pacific region recorded over 230 million international arrivals in 2023, with India accounting for only 7.2 million.

Shekhawat said that India’s top source markets have remained consistent over the past decade, though the growth of tourism from countries with a significant non-resident Indian diaspora has reshuffled these markets.

The minister also stressed on the need to decongest popular tourist spots and develop new tourism products.

“I have been working closely with states to submit proposals for big-ticket projects. Alongside these efforts, we need to focus on developing new tourism destinations, particularly in rural and unexplored regions, to diversify our tourism offerings,” he said.

“Yesterday was the last day for submissions, and projects worth over Rs 8,000 crore have been proposed. Almost all states, except West Bengal, have submitted their projects. Tourism will multiply manifold once these projects come into effect,” the minister added.

To support this growth, a robust regulatory framework is essential, according to Pradeep Shetty, President of FHRAI. “This framework will benefit not only large cities and popular destinations but also unexplored regions and remote areas. It will create opportunities for youth, women, and marginalized communities, ensuring that the advantages of tourism are distributed widely across the sector.”

He also pointed out the sector remains unmapped with a large number of unorganised inventory.

To this, the minister said, that the government is working on creating a data base to identify a country’s tourism potential. “We are speaking with states to create a system for data aggregation. If we do that, India can rank among the top 10 international destinations.”

(The reporter is in Goa to cover the event at the invitation of FHRAI)

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