Tourism and Hospitality Sector in India Set to Create 61 Lakh New Jobs by 2034: Key Insights from CII-EY Report – Industry News

India’s tourism and hospitality sector is poised for a significant expansion, with the potential to generate 61 lakh new jobs by 2034, according to a new whitepaper released by the Confederation of Indian Industry (CII) and EY. Titled “Reimagining Workforce Horizons: Employment Landscape in Tourism and Hospitality in India,” the report was unveiled at the 18th Annual CII Tourism Summit and highlights the sector’s crucial role in economic growth and job creation.

Currently, tourism and hospitality contribute approximately 8% to India’s total employment. Despite setbacks from the COVID-19 pandemic, the sector is showing a strong recovery, largely driven by a resurgence in domestic tourism. This growth trajectory is expected to continue, with a projected rise in sectoral spending by 1.2 times by 2034, thereby necessitating the addition of a skilled workforce.

Gender Inclusion and Workforce Expansion

The report points out that of the 61 lakh new jobs expected by 2034, 46 lakh will be for men and 15 lakh for women. This growth underscores the sector’s potential in driving gender inclusion while also expanding the workforce. The findings also highlight the need for targeted strategies to attract and retain female workers in the sector, which could further boost employment opportunities.

Key Recommendations for Skills Development

To ensure that the workforce is equipped to meet future demands, the CII-EY report recommends a focus on specialized skills in areas such as digital marketing, sustainable tourism practices, and advanced customer service. These skills will be essential to cater to the evolving needs of both domestic and international tourists.

Several key initiatives are proposed to address the skills gap and enhance career prospects:

Gamified Learning Management Systems (LMS) for continuous professional development.

Collaboration with industry associations to create clear career advancement pathways.

Establishing a dedicated taskforce under the Ministry of Tourism to standardize skills and educational frameworks across the sector.

Fostering Inclusivity and Innovation

The whitepaper stresses the importance of creating an inclusive workforce by focusing on the empowerment of women and marginalized communities. It advocates for policies that incentivize workforce participation, particularly in emerging segments such as medical tourism. Moreover, the introduction of a Tourism Employment Index (TEI) is proposed to better track employment trends and offer actionable insights into workforce dynamics.

The report also underscores the need for integrating Digital Public Infrastructure (DPI) to make India a global hub for innovative tourism solutions. This includes offering industry status recognition, targeted subsidies, and Employment Linked Incentive (ELI) schemes to stimulate job creation in the sector.

Harnessing the Gig Economy and Future Workforce Trends

An innovative aspect of the report is the exploration of the gig economy as a means to provide flexible employment opportunities, especially during peak seasons. The rise of Gen Z in the workforce is also highlighted as a significant enabler of more flexible, tech-savvy, and community-driven work environments. These trends are expected to foster a more dynamic and innovative labour market within the sector.

The Road Ahead: A Vision for 2036-37

Looking beyond 2034, the report projects that by 2036-37, the sector will need an additional 61.31 lakh workers to accommodate the rising demand for tourism and hospitality services. The focus on upskilling women, as well as marginalized communities, will be critical in bridging skill gaps and ensuring that the sector can fully capitalize on its potential for economic growth and job creation.

Collaborative Approach for Sectoral Growth

In conclusion, the CII-EY whitepaper calls for a collaborative approach between the government, private sector, and academic institutions to unlock the full potential of the tourism and hospitality sector. By fostering innovation, upskilling the workforce, and prioritizing inclusivity, India’s tourism industry is on track to become a key driver of economic transformation and job creation in the coming decades.

As the sector continues to recover and expand, the strategic recommendations outlined in the report provide a roadmap for ensuring that India’s tourism and hospitality workforce is prepared to meet the challenges and opportunities of the future.

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