Tourism Industry in India: An Empirical Analysis of Prospects and Potentials

Abstract

The paper forecasts the Foreign Tourist Arrival (FTA) for the next five years by
studying the trends & patterns of foreign tourist arrivals in a different dimension. It
also analyses the impact of the tourism industry on the Indian economy in terms of
foreign exchange earnings, Gross Domestic Product (GDP), and employment. This
follows by the growth rate trend study of foreign tourist arrivals from the year 2001 to
2018 for all states and compares it with the national average. This analysis follows a
multiple regression model on foreign tourist arrivals in India and studies the factors
determining it, which is followed by the State-wise data collected from various sources
that helped in running a panel data regression. Based on different factors like
infrastructure, socioeconomic, environment & education diversified scores were
generated for different states to make a tourism index. In the end, based on results,
recommendations are provided.