Context: On 21st May, 2024, India climbed to 39th place on the World Economic Forum’s Travel & Tourism Development Index 2024, marking a return to pre-pandemic tourism levels globally.

About the report

• The biennial index showcased the travel and tourism sectors of 119 countries across a spectrum of factors and policies.

• The index is comprised of 5 dimensions, 17 pillars, and 102 individual indicators, distributed among the different pillars. However, the five dimensions are not factored into the calculation of the index.

• The findings underscored that high-income economies typically maintain more favorable conditions for travel and tourism development.

• This was attributed to conducive business environments, dynamic labour markets, open travel policies, robust transport, and tourism infrastructure, as well as well-developed natural, cultural, and non-leisure attractions.

Key Points

• Improved Ranking: India's rank on the index rises from 54th in 2021 to 39th in 2024, positioning it as the highest-ranked country in South Asia and among lower-middle-income economies.

• Top Countries: The US leads the list, followed by Spain, Japan, France, and Australia, showcasing the recovery of global tourism activities.

• Due to modifications in index parameters, direct comparisons with previous years are limited.

• The global travel and tourism sector is expected to return to pre-pandemic levels in 2024, driven by easing COVID-19 restrictions and strong demand.

• Index Parameters: Changes in index parameters limit comparability with previous years, impacting India's rank comparison.

• Competitive Factors: India excels in price competitiveness (18th), Air Transport infrastructure (26th), and Ground and Port infrastructure (25th).

• Resource Pillars: Strong natural, cultural, and non-leisure resources contribute to India's travel appeal, ranking among the top 10 in all resource pillars.

• Sustainability: Despite a decline, India maintains sustainability in travel and tourism demand, especially with sustainable long stays among inbound visitors.

• Challenges: India faces challenges in price competitiveness decline and incomplete recovery of air transport and tourist services infrastructure to 2019 levels, impacting the overall TTDI score.

• Global Tourism Recovery: International tourist arrivals and the tourism sector's contribution to global GDP are expected to rebound to pre-pandemic levels in 2024, driven by lifted travel restrictions and pent-up demand.

• Regional Recovery: The Middle East leads in international tourist arrivals recovery, while Europe, Africa, and the Americas show strong recovery rates in 2023.

• Favorable Conditions: High-income economies in Europe and Asia-Pacific maintain favorable conditions for travel and tourism development, driven by conducive business environments, robust infrastructure, and diverse attractions.

Potential key focus areas, derived from the TTDI 2024 results as well as other research, are:

• Leveraging T&T for environmental sustainability by:  

1. Providing greater value for nature conservation efforts 

2. Leading on the energy transition 

3. Driving responsible consumption

• Leveraging T&T for socioeconomic prosperity by:  

1. Investing in skilled, inclusive and resilient workforces  

2. Putting local communities at the centre of T&T development 

3. Strategically managing visitor behaviour and infrastructure development

• Leveraging T&T for global connectivity and peace by:  

1. Increasing travel openness 

2. Encouraging cultural exchange between visitors and the local community

• Leveraging T&T and technology for positive impact by:  

1. Adopting technology for sustainable and resilient T&T management 

2. Bridging the digital divide and creating opportunities  

3. Ensuring responsible and safe use of technology

Conclusion

• India's ascent to the 39th position on the World Economic Forum's Travel & Tourism Development Index 2024 reflects its potential as a global tourism destination. 

• Despite challenges posed by the pandemic, India's rich natural, cultural, and non-leisure resources have bolstered its appeal among travelers. However, the slight decline in its overall TTDI score compared to 2019 suggests areas for improvement, particularly in infrastructure and competitiveness. 

• While India's progress is commendable, sustained efforts are needed to enhance its standing further and ensure the resilience of its tourism sector in the face of future disruptions. 

World Economic Forum

• The World Economic Forum is an organization that promotes public-private cooperation and was founded in January 1971.

• Headquarters: Geneva, Switzerland.

• Funding: It is mainly provided by collaborating companies, usually with yearly sales of more than USD 5 billion.

• Annual Davos Meeting: Approximately 3,000 people attend Davos to engage in 500 sessions of discussion on global issues with investors, corporate executives, political figures, economists, celebrities, and other participants.