Highest spending tourism state in India spends only 0.644% of the total expenditure: WTTC-Hotelivate State Ranking Survey

Although the Reserve Bank of India (RBI) data for 2018-19 had shown an overall increase in revenue expenditure for tourism by 6%, and capital expenditure by 12% over 2016-17, the tourism spend as a percentage of total expenditure by Indian states has been dismally low and ranged between 0.0005% and 0.64% during the same period.

As per the 6th biennial State Ranking Survey for Tourism released by Hotelivate, a tourism and hospitality consultancy agency, along with World Travel & Tourism Council India Initiative (WTTCII), the highest spending state on tourism in 2018-19, Goa, had spent only 0.644% of the total state expenditure on tourism. In terms of tourism expenditure as a percentage of total expenditure, the top spenders after Goa are Sikkim (0.642%), Jammu & Kashmir (0.615%) and Arunachal Pradesh (0.380%).

When it comes to tourism expenditure some of the leading states in terms of tourist visits figure quite low in the State Ranking Survey results. Tamil Nadu, which receives highest number of domestic and international tourists in India, figures on the bottom of the table when it comes to tourism spending. Other States which rank low when it comes to tourism in India are Assam, Telangana, Haryana, Tripura, etc.

The survey has been conducted taking into account parameters like Tourist visits, State Expenditure on Tourism, Green Cover, Presence of Branded Hotel rooms, GSDP Per Capita, Urbanisation, Aircraft movement, road and rail infrastructure, Ease of Doing business, Effective marketing, etc.

In the overall ranking, while Goa bagged the ‘Destination Leadership Award’ considering the state’s consolidated rankings for a decade, Tamil Nadu, Delhi, Maharashtra and Kerala managed top five positions in the State Ranking Survey 2018-19. Sikkim bagged the ‘Emerging Destination Award’, while Uttar Pradesh, Tripura and West Bengal shared the ‘Destination Stewardship Awards’ as most up-ward moving states in consolidated rankings in the last 10 years.

In the consolidated ranking for the last 10 years, between the first ranking Survey and the latest, the biggest movers are West Bengal, Uttar Pradesh, Jharkhand, Tripura, etc., while the biggest losers are Arunachal Pradesh (-16), Jammu & Kashmir (-13), Bihar (-7), Manipur and Nagaland (-4), etc.

While the Government of India confers highest importance for tourism development of North Eastern region, the survey shows that the North Eastern states continue to lag behind in the overall rankings across parameters from the rest of India. “We have created a separate category this year for North East to bring them forward and recognise the best states,” said Manav Thadani, co-Founder, Hotelivate.

Among the North Eastern States, Sikkim, Tripura and Mizoram leads the pack. Arunchal Pradesh ranked the lowest both among the north eastern states as well as nation-wide, since it could not secure any points for six of the 12 parameters considered in this survey.

In the Ease of Doing Business, Andhra Pradesh, Telangana, Haryana, Jharkhand and Gujarat topped the rankings, while in the effective marketing campaign, Kerala, Uttarakhand, Rajasthan, Goa, Gujarat, etc. came on top.

Thadani said that the Survey results will be shared with all the Chief Secretaries and Tourism Secretaries of the States for necessary action based on the survey results.

The report was released by Union Minister with Independent Charge of Tourism & Culture, Prahlad Singh Patel at a function organised by WTTC-II in Delhi.