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Travel & Tourism Development Index

24th May, 2024

Travel & Tourism Development Index

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Context:

  • The World Economic Forum's Travel & Tourism Development Index 2024 has been released.

World Economic Forum's Travel & Tourism Development Index 2024

●The index is prepared in collaboration with the University of Surrey.

●The biennial index analyzed the travel and tourism sectors of 119 countries, assessing a range of factors and policies.

India ranking

●India's rank has risen to 39th place as global tourism returns to pre-pandemic levels.

●India ranked highest in South Asia and among lower-middle-income economies.

●In the 2021 index, India was ranked 54th, though changes to index parameters limit comparability with earlier years.

●India's strong Natural (6th), Cultural (9th), and Non-Leisure (9th) Resources are key drivers of travel, making it one of only three countries to score in the top 10 for all resource pillars.

●Despite a decline compared to 2019, India still scores well for travel and tourism demand sustainability, partly due to longer, more sustainable stays among inbound visitors.

●However, global inflationary trends have affected travel and tourism conditions in India, with price competitiveness declining and air transport and tourist services infrastructure yet to recover to 2019 levels.

●Consequently, India's overall TTDI (Travel and Tourism Development Index) score is 2.1 percent below its 2019 level.

World ranking

●The US topped the list.

●Following the US, the top five countries in the 2024 list are Spain, Japan, France, and Australia.

●Germany ranked 6th, followed by the UK, China, Italy, and Switzerland in the top ten.

●As per the report, India is highly price-competitive (18th) and has strong Air Transport (26th) and Ground and Port (25th) infrastructure.

A Stronger Position in the world

●High-income economies in Europe and Asia-Pacific continue to lead the index. International tourist arrivals and the travel and tourism sector's contribution to global GDP are expected to return to pre-pandemic levels this year, driven by the lifting of COVID-19 travel restrictions and strong demand.

●The Middle East had the highest recovery rates in international tourist arrivals, exceeding 2019 levels by 20 per cent, while Europe, Africa, and the Americas showed a strong recovery of around 90 per cent in 2023.

●The results highlighted that high-income economies generally have more favourable conditions for travel and tourism development, supported by good business environments, dynamic labour markets, open travel policies, strong transport and tourism infrastructure, and well-developed natural, cultural, and non-leisure attractions.

Source:

https://timesofindia.indiatimes.com/travel/travel-news/india-ranks-39th-on-the-world-economic-forums-travel-tourism-development/articleshow/110341908.cms 

PRACTICE QUESTION

Q. Which of the following statements regarding India's ranking in the World Economic Forum's Travel & Tourism Development Index 2024 is correct?

  1. India's rank has declined compared to the 2021 index, indicating a decrease in global tourism.
  2. India's overall TTDI score has increased by 2.1 percent compared to its 2019 level.
  3. India ranked highest in South Asia and among upper-middle-income economies.
  4. Despite global inflationary trends, India's price competitiveness has improved, contributing to its rise in rank.

Choose the incorrect option:

a)1 and 2

b) 2 and 3

c) 3 and 4

d) All four

Answer: d

Explanation:

Statement 1 is incorrect:

India's rank has actually risen to 39th place in the 2024 index from 54th in the 2021 index. Therefore, there has been an improvement in India's ranking rather than a decline.

Statement 2 is incorrect:

Despite a decline compared to 2019, India still scores well for travel and tourism demand sustainability, partly due to longer, more sustainable stays among inbound visitors.

However, global inflationary trends have affected travel and tourism conditions in India, with price competitiveness declining and air transport and tourist services infrastructure yet to recover to 2019 levels.

Consequently, India's overall TTDI (Travel and Tourism Development Index) score is 2.1 percent below its 2019 level.

Statement 3 is incorrect:

India ranked highest in South Asia and among lower-middle-income economies, not upper-middle-income economies.

Statement 4 is incorrect;

Global inflationary trends have affected travel and tourism conditions in India, with price competitiveness declining. Therefore, India's price competitiveness has not improved despite its rise in rank.