New Delhi [India], December 22 : Data collection, regional disparities in opportunities, investments and capacity building are the major challenges the domestic hospitality sector faces, according to a recently released report by The Confederation of Indian Industry (CII).
The report brought out in collaboration with Ernst & Young India (EY) said that the that the limited availability of comprehensive data regarding employment trends, workforce dynamics and skills requirements poses a challenge for effective policymaking and planning within the industry.
The lack of accurate data leads to underreporting of the industry's contribution to national employment statistics, which could diminish investment and policy focus, the report added.
It further added that factors such as informal employment, lack of standardisation across states, and seasonal and regional variations have impacted the collection of data.
Highlighting the disparities in the workforce, the report adds that skill gaps result in significant wage differences, career prospects and growth potential.
Skilled professionals, such as chefs, hotel managers and travel consultants, earn substantially higher than those in unskilled positions like housekeeping and bellboy, the report added.
Lack of soft skills such as customer handling, teamwork, and oral communication are key contributors to the overall skill gap, the report added.
According to the Government. of India estimates, the tourism and hospitality sector employed approximately 80 million individuals, contributing to 15 percent of India's total workforce in the years 2019-2031. This includes both direct and indirect employment generated by tourism activities.
However, the sector experienced a significant downturn due to the COVID-19 pandemic, with employment levels dropping sharply to approximately 32 million jobs in 2020-21, accounting for just 7.3 per cent of the total employment.
According to WTTC estimates, as mentioned in the report, India's travel and tourism sector is estimated to have contributed nearly Rs 21,15,000 crore to the country's economy in 2024, which is 21.3 percent more than that in 2019.
The contribution is further projected to double to Rs 43,25,000 crore in 2034. There has been a remarkable recovery in the sector, most of which is driven by domestic tourism. Trends also suggest that domestic spending has increased from 2019 to 2023 as compared to international spending.
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