Tuesday, May 26th, 2020

Travel and tourism share in GDP is expected to grow up by 1% in next 5 years


New Delhi, Travel Unravel Holidays Private Limited, a travel e-commerce player, has welcomed the government move to form a single regulator for e-commerce sector. Speaking on the development, Saurabh Sharma, Director, Travel Unravel Holidays Private Limited, said, “This move will organize the entire travel space, which eventually will help everyone in the chain especially the end consumer. The single e-commerce regulator will ensure one umbrella that will drastically reduce the multiplicity of compliance and authorities to deal with, offering seamless business ecosystem.” “Additionally, it will prevent monopolistic tendencies of big players to usurp the market and infuse competitiveness and fair play in the travel business,” he said. Single regulator for e-commerce sector will boost the travel e-commerce industry in India by 30% in next 5 years. Also, with this move, if implemented and executed well, we expect that travel and tourism share in GDP will grow by 1% in next 5 years, said Saurabh. Further Sharma demanded, “The move of single e-commerce regulator must also include guidelines for the products offered and pricing, which will benefit the consumers, eventually. However, in today’s e-commerce industry where a huge foreign investment is eyeing to tap the market, high competition and high marketing cost also means some companies will inescapably  demand adjustment of the product basket.” Commenting on the government intent for e-commerce and social media firms to exclusively store customer data locally, Sharma said, “It’s a great move as it will bring much needed transparency in the travel and tourism sector and address the privacy issues of business as well as customers. Additionally, it will also encourage local companies to innovate and explore their potential within their own country, inviting more competition and thus evolution of better products.” Also, it will  help the government to keep a check on airlines’ quarterly or yearly functions and reports , enabling enhancement in the working  of  e-travel industry and boosting confidence of future travellers. “Additionally, the consumer feedback will drastically improve, which will be a great mover for the industry to leap frog.  Also, the companies in travel business will need to adhere to the GDPR regulations, so that it is easier to implement the data protection policy in India verses our competitors, especially global ones,” Sharma opined. The travel and tourism industry contributed a total of 208.9 billion U.S. dollars to GDP in India in 2016 – this accounted for approximately 9.6 percent of India’s total GDP, as per reports in the public domain. India had the second highest total tourism GDP contribution in Asia- Pacific, behind China in 2016. The industry also has a substantial effect on employment in India. “As per reports, the travel and tourism sector provides employment to around 41.6 million people annually. The number is expected to rise by 2 per cent annum to 52.3 million jobs by 2028 in India. Will the favouring government policies and encouraging ecosystem, the potential of industry is set to only grow” , said Saurabh.



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