India’s tourist hotspots set to drive job boom: 58.2 mn positions forecasted by 2033

Travel and Tourism sector surge: India's job market booms as tourists travel demand grows, creating opportunities across the nation

From iconic landmarks like the Eiffel Tower and the Taj Mahal to hidden gems off the beaten path, every destination has a story to tell and an experience to offer. In recent years, the travel and tourism industry has undergone a profound transformation, driven by technological advancements, changing consumer preferences, and evolving global trends. The rise of digital platforms has revolutionized how travelers plan, book, and experience their trips, offering greater convenience, flexibility, and personalization.

The transformation wave has also impacted India’s economy as India’s travel and tourism sector contributes significantly to the country’s economy. According to the Ministry of Tourism, Foreign Exchange Earnings during the month of December 2023 were Rs. 24,707 crores as compared to Rs. 19,527 crores in December 2022 and Rs. 22,873 Crore in December, 2019 registering a growth of 26.53% and 8.02% with respect to 2022 and 2019 respectively.

Fuelled by India becoming one of the world’s top travel destinations, the travel & tourism ecosystem in India has registered remarkable growth post the pandemic, according to Sachin Alug, CEO, NLB Services.

He said India is serving as a crucial source of foreign exchange, travel, and tourism contributed Rs.15.9 trillion (US$ 191.25 billion) to India’s economy in 2022 and was estimated at Rs. 16.5 trillion for 2023.

Travel spurs job creation across industries

The rise in travel demand has led to a surge in job creation across various sectors, especially in the travel and tourism industry. Businesses like airlines, hotels, tour operators, travel agencies, and restaurants have had to expand their workforce to meet the increased demand.

The revival of travel-related activities has also stimulated job creation in ancillary industries like transportation, hospitality, retail, and entertainment. The resumption of tourism has positively impacted local economies, particularly in popular tourist destinations, with small businesses, artisans, and cultural attractions experiencing increased demand.

Overall, the surge in travel demand has revitalized the industry and contributed to economic recovery and growth.

The collaborative growth within the industry has resulted in consistent job creation across various regions of the country, encompassing both Tier I and Tier II cities. During the challenging period of the pandemic in 2020, the tourism sector contributed to the employment of 39 million individuals, representing 8% of the nation’s workforce, according to Sachin.

Following the recovery phase post-pandemic, this sector demonstrated remarkable resilience, emerging as one of the fastest-recovering sectors. Notably, there was a notable surge in demand for talent in the tourism sector, with a 44% increase recorded in August 2023 alone.

Projections indicated the potential addition of 1.6 million new jobs within the calendar year 2023. Buoyed by this ongoing growth trajectory, the travel and tourism sector is poised to create an impressive 58.2 million jobs across the nation by the year 2033, according to Sachin.

Job openings at the top tourist destinations

Top tourist destinations have a significant impact on job openings and hiring numbers within the travel and tourism sector. The tourist destinations, often characterized by their cultural richness, historical significance, natural beauty, or vibrant urban life, attract millions of visitors annually, thereby creating a surge in employment opportunities to meet the demands of tourism-related services.

Notably, the sector has exhibited resilience, positioning itself as a key driver of employment growth in the coming years, shared Sachin.

According to him, top domestic tourist destinations such as Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Karnataka, and Maharashtra continue to attract visitors. Major cities like Delhi NCR, Mumbai, Bengaluru, and Pune are witnessing significant hiring activity, along with emerging tier 2 cities like Jaipur, Ahmedabad, and Chandigarh.

The trajectory of growth extends to emerging locations such as Gujarat, Lakshadweep, and West Bengal. In the coming nine years, new jobs are also expected across emerging cities/locations like Gujarat, Lakshadweep, and West Bengal.

Top job profiles in travel and tourism

Prominent job profiles that will continue to be in demand experiencing y-o-y surges include sales (18% surge), business development (17% surge), chefs (15% surge), travel consultants (15% surge), tour operators (15% surge), travel agents (15% surge), hoteliers (15% surge), guides (20% surge), wildlife experts (12% surge), and transportation providers (15% surge), etc, shared NLB Services CEO.

Looking at the experience level, as of March 2024, 50% of online job postings in the travel and tourism sector were for freshers or entry-level positions (0-3 years of experience). Intermediate-level roles (4-6 years of experience) and top management positions (15+ years of experience) each represented a 30% and 20% share of the total demand, respectively.

The expanding horizons of the travel sector

Setting sail on a voyage of evolution, the travel sector aims to extend its reach far beyond conventional business and leisure pursuits.The sector is on the rise The sector’s transformation is evident with the emergence of new subsets like destination wedding travel, religious tourism, adventure sports tourism, ecotourism, cultural tourism, and rural tourism, apart from just business and leisure.

Sachin added, “Sustainable tourism, valued at $180 billion globally, is gaining traction, reflecting a growing emphasis on eco-conscious travel practices.”

Companies are adapting to talent shortages by embracing the gig economy model, witnessing a 14% increase in gig roles since January 2023. Positions such as translators, photographers, and tour guides are in high demand, with further growth projected in the coming years.

India’s travel and tourism sector present a promising landscape for job seekers, with ample opportunities for growth and innovation. As the industry continues to evolve, it is poised to play a pivotal role in driving economic prosperity and fostering sustainable development.

Despite facing challenges such as natural disasters, pandemics, and geopolitical tensions, the resilience of the travel and tourism industry continues to grow steady. With innovation, collaboration, and a shared commitment to responsible travel, it continues to inspire wanderlust and create unforgettable memories for generations to come.