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Over past six decades, tourism has continuously expanded and diversified with ever-increasing number of destinations, to become one of the largest and fastest-growing economic sectors in the world. In a broader sense, Tourism is about travel, travellers and visitors, which creates opportunities for various businesses and influences wide range of industries. These industries that provide consumption goods and services together constitute to the ‘Tourism Sector’. Hence, tourism is not only a growth engine but also an employment creator, impacting both the economic and socio-cultural development of a country.

The Travel & Tourism (T&T) industry is the largest contributor to employment and economy, which is 9.8% of the global GDP (US $7.2 trillion) in 2015 (exceeding forecast of 9% contribution), including direct, indirect and induced impacts. Despite the slow economic growth, the tourism sector has shown significant resilience globally. Despite global economic uncertainty, the sector grew by 3.1%. This upward trend in T&T sector is likely to continue over next two decades, at an expected annual growth of 4% – faster than financial services, transport and manufacturing sectors. Tourism added 7.2 million jobs to the global economy, about 1 in 11 jobs globally. One job in the core tourism industry creates about one and half indirect jobs in tourism-related economy. Furthermore, for accommodation industry, for each of the core job supports three indirectly dependent jobs.

Odisha Tourism and Hospitality Sectoral Overview

Odisha is known for its scenic beauty, exquisite temples, extraordinary monuments, exquisite craftsmanship, wildlife sanctuaries, natural landscape and pristine beached all over the world. Tourism in Odisha has grown considerably in recent years on account of good infrastructure facilities, favourable government policies, improvement of existing tourist locations, development of new tourist destinations and strong growth of hotel and restaurant industry in the state.

  1. Tourism in Odisha is one of the main contributors to the Economy of Odisha (13% of GDP of Odisha). Blend with both forward and backward linkages, hospitality sector generate more than 92 thousand direct employment and 2.77 lakh indirect employments in the ratio of 1:3 in Odisha. Most tourists to Odisha come from West Bengal and Andhra Pradesh.
  2. Domestic and foreign tourist arrivals have been increasing continuously during last decade in Odisha with just 31.1 lakh domestic tourists and 22,854 foreign tourists in 2001 to 117.86 lakh domestic and 66,971 foreign tourists in 2015, posing an annual growth of 9.12 per cent
  3. There is an increasing trend in spending and average duration of a trip to Odisha for both domestic and foreign investors. The average spending of domestic and international tourist has increased by 6.4% and 20% respectively during FY2004-05 to FY2013-14. Almost 46% of the tourists visiting the state are from Western Europe.
  4. Odisha secured 3rd rank in terms of intensity of overnight domestic tourism, with an average of 541 trips per 100 households, as compared to the all-India average of 418 trips per 100 households. Therefore, the tourism intensity in Odisha is 29 per cent higher than the national-level tourism intensity. (source:National Council of Applied Economic Research, 2015)
  5. Odisha secured 4th rank with 552 trips per 100 households as against 440 for India. The rank for urban Odisha was 3rd with an average of 479 trips per 100 households as compared to 365 for urban India (source:National Council of Applied Economic Research, 2015)

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