Tourism sector could resolve 50% of India's employment challenges: Lemon Tree CMD
tourism sector has the potential to resolve 50 per cent of the country's employment challenges with the right government support, Lemon Tree Hotels Chairman and Managing Director Patanjali Govind Keswani said on Saturday. Delivering his address at the first National Conclave on India 2047, organised by IIM Calcutta, he said India's tourism sector is on the verge of hitting the inflexion point.
Keswani pointed out that several countries have seen that the tourism sector contributes as much as 15-20 per cent to their GDP and account for 25 per cent of employment.
Expressing disappointment over the government's approach towards the tourism sector, he said, «In India, tourism contributes only 6.5 per cent to GDP and a similar share in employment. This sector holds enormous potential for creating jobs.»
«If the government can leverage this opportunity effectively, it could address up to 50 per cent of our employment challenges,» he said.
Discussing India's current economic landscape, Keswani remarked that the country is at a critical juncture, similar to where China was during its rapid growth phase.
He highlighted that even household incomes in India grow at a rate of 6-7 per cent annually, setting the stage for a significant shift in discretionary consumption patterns.
«India has 280 million households, but currently, only 5 million households-less than 2 per cent-are active consumers of discretionary goods like SUVs and hatchbacks,» Keswani said.
«However, with continued economic growth, this number could
