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IATO urges govt to set up ₹1,000 cr board to boost foreign tourist inflow
The Indian Association of Tour Operators (IATO) on Monday wrote to Prime Minister Narendra Modi, seeking an immediate budgetary allocation of ₹1,000 crore under the Incredible India campaign, as well as the formation of an India Tourism Board under the PM's leadership to increase foreign tourist arrivals (FTAs) in the country.
This request follows IATO's repeated concerns over India's slow recovery in FTA numbers compared to 2019 levels. As the apex body for inbound tour operators, IATO collaborates with the government and other hospitality stakeholders on policy matters related to FTAs. The association said these measures are crucial with the upcoming tourist season just months away and could help boost inbound tourism in the current financial year.
According to the India Tourism Data Compendium 2024, 9.52 million FTAs were recorded in 2023 as part of an ongoing recovery. In comparison, 10.93 million FTAs were recorded in 2019, before the pandemic.
'When global trade is facing unprecedented disruptions due to tariff wars and geopolitical shifts, tourism exports remain unaffected by such constraints,' said IATO President Ravi Gosain in a statement. 'Unlike goods, India's tourism export—foreign tourists spending in India—is non-tariff based and brings direct foreign exchange earnings into the country. This makes inbound tourism a stable, sustainable, and immediate contributor to India's current account, foreign exchange reserves, employment generation, and overall trade balance. Yet, regretfully, the country is lagging in efforts to attract foreign tourists.'
Gosain added that IATO has already taken steps such as simplifying visa processes, expanding the scope of e-visas, fast-tracking group tourist visas, and proposing visa fee waivers for select countries to enhance FTA numbers.
He further emphasized the need to incentivize international airlines and air charters to improve connectivity to key tourism circuits, especially in Tier-II and Tier-III destinations. 'This sector alone has the potential to contribute 1 to 2 per cent to the GDP. Therefore, this engine needs to fire,' he said.
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