Boston, MA -- (SBWIRE) -- 11/28/2012 -- In 2011, the World Economic Forum ranked India as the 12th most attractive tourist destination in the Asia-Pacific. Travel and tourism is the largest service sector in India according to Timetric analysis. In 2011, the tourism sector accounted for 7.3% of the country's GDP and employed 7.25% of India's total workforce. During the review period, total tourist visits to India increased from 541.4 million in 2007 to 831.5 million in 2011, registering a CAGR of 11.32%. This growth is attributed to a variety of factors including government initiatives, such as the granting of export house status to the Indian tourism sector, incentives for promoting private investment in the form of income tax exemptions, and the provision of interest subsidies.
- The growth in trip volumes across tourist types was driven by the concerted efforts of the Indian government to promote the tourism sector and better tourist facilitation. The government extended infrastructure status to the tourism sector in 2004, allowing cheaper, long-term funds to help finance tourism infrastructure.
- With more people migrating to cities for employment, the traditional 'joint-family' system in India has given way to an increasing number of nuclear families. This trend has brought a change in lifestyle with an increasing number of people visiting friends and families during vacations.
- The government has established incentives for tour operators that promote domestic tourism. In addition, there is potential for income tax exemption for hospitality providers who invest 50% of their profits back into tourism infrastructure.
- Inbound tourism recovered with positive growth rates in 2010 and 2011 respectively. The hosting of sporting events such as CWG in 2010 and the ICC World Cup in 2011 fueled inbound tourism during the review period.
- India's outbound tourism volume growth declined in 2009 as trips were postponed or cancelled due to unfavorable economic circumstances.
- India was the ninth-largest aviation market in the world in 2010. During the review period, the Indian government's "open sky policy" attracted many foreign aviation companies to operate on Indian soil.
- In 2008 and the first half of 2009, the Indian hotel market was adversely affected by the global economic conditions and the Mumbai terror attacks in 2008. As a result, several organizations limited their expenses related to travel and entertainment, and the hotel market suffered from a decline in revenues generated from meetings, conferences and corporate events.
- In 2011, the organized car rental market claimed a market share of 20% of the total car rental market. The significant majority of total business generated in the organized sector is from business to business agreements.
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Companies Mentioned in this Report: Air India Ltd., IndiGo Airlines Pvt. Ltd, Jet Airways (India) Limited, Kingfisher Airlines Limited, SpiceJet Limited, The Indian Hotels Company Limited, EIH Limited, Mahindra Holidays & Resorts India Limited, Hotel Leela Venture Limited, Oriental Hotels Ltd., Cox & Kings Limited, Thomas Cook (India) Limited, MakeMyTrip Limited, Yatra Online Private Limited, Travel Corporation (India) Limited, Carzonrent (India) Private Ltd, ECOS India Mobility & Hospitality Pvt Ltd (Eco Rent a Car), Car Rental 2 India, Avis India, My Taxi India
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