Bottlenecks and Corrective Measures

India Tourism – Bottlenecks and Corrective Measures

India Tourism’s growth story is observing several bottlenecks like skewed supply viz-a-viz demand of hotel rooms, high taxes and several kinds of taxes, poor infrastructure, worldwide recessionary trend, double digit inflation, high interest rates, slowing economic growth rate etc have impacted tourism in India in 2012 very negatively. Though domestic travel is showing growth signs but inbound India travel is greatly affected. As Indian tourism industry contributes maximum in terms of employment generation, Government of India and various state governments need to address this highly important but hitherto neglected tourism industry. The tax structure must be rationalized and the tax burden should be minimized. Along with that infrastructure development must be spruced up to attract a greater share of International tourist arrivals. The cost of domestic airfares and hotels have deterred even the domestic travelers to move to Goa this year. Rather they opted for South East and East Asian countries as vacation holidaying. In lieu of the efforts from government agencies, the travel agencies of India should bring forth new Indian tourist destinations and hence more practical and enchanting India tour packages.