Tourism Can Power India’s Growth—If Policy Makers Listen: Dr. Subhash Goyal

Dr. Subhash Goyal, Chairman of STIC Travel Group and one of the most respected figures in India’s travel and aviation industry, continues to be a compelling voice for transformative change in tourism. A veteran who has witnessed the evolution of Indian tourism policy over decades, Dr. Goyal is not one to mince words when it comes to calling out gaps and pushing for bold reforms.

At the ICC Aviation and Tourism Conference, Dr. Goyal put forth an unfiltered critique of India’s restrictive aviation policies. His central argument: India must liberalize its skies. Drawing a compelling comparison, he stated:

“Restricting our airspace on a reciprocal basis is, in my view, foolish. Look at Dubai – it has no oil, yet it focused on tourism and opened its skies. Today, it is a global tourism hub.”

According to him, limiting airspace access based on reciprocity not only stifles growth but also prevents India from becoming a global aviation gateway. With international airfares surging — notably, India–New York fares doubling from ₹70,000–₹80,000 to over ₹1.6 lakh — Dr. Goyal stressed the need for increased aviation capacity and rationalized taxation to make international travel affordable and sustainable for Indian travelers.

A Shrinking Tourism Budget: A Cause for Concern

In his recent public addresses, Dr. Goyal expressed deep concern over the shrinking budget for tourism publicity in India. Referring to the Union Budget allocation, he said:

“The allocation of only ₹3 crore given to the Ministry of Tourism is shocking… The image of India will take a hit when we will not be able to participate in any international trade fairs.”

This marks a steep decline from the ₹400 crore allocated during the heydays of the Incredible India campaign. Dr. Goyal believes such drastic cuts undermine India’s ability to present itself as a vibrant global destination and diminish the country’s brand visibility abroad.

Reopen Tourism Offices, Revive International Presence

Dr. Goyal firmly advocates for reinstating Indian Tourism Offices in major international markets, arguing that a physical presence in key outbound countries is crucial for long-term brand building:

“The government should reopen Indian Tourism offices abroad and increase the publicity budget to promote foreign tourism in India; otherwise, it will depend only on digital platforms.”

In an age of digital saturation, he argues, only a mix of strategic online and on-ground presence can create tangible recall among potential travellers.

A Tax That Hits Where It Hurts

Dr. Goyal has also voiced strong opposition to the recent 20% TCS (Tax Collected at Source) on overseas tour packages. He warns that this move will push Indian travellers to bypass Indian travel companies and book directly through foreign portals, draining revenue from domestic agents and diminishing local employment.

“The heavy taxes will restrict the overseas movement of travellers. Taxation measures have to be traveller-friendly.”

He emphasizes that travel should be treated as an economic enabler, not a luxury that must be penalized.

Tourism: The Unsung Economic Engine

A recurring theme in Dr. Goyal’s advocacy is tourism’s untapped potential to bridge India’s employment and foreign exchange deficits. His words are both a warning and a roadmap:

“Tourism can earn billions of dollars of foreign exchange… If we promote tourism properly, our entire deficit of foreign exchange can be covered, and it will also create millions and millions of jobs in the remotest areas amongst the poorest of the poor.”

At a time when India is chasing the goal of becoming a $5 trillion economy, his argument highlights the labour-intensive and inclusive nature of tourism, capable of uplifting the rural economy and ensuring balanced development.

India’s Global Position: Why Are We Lagging?

Perhaps the most piercing point made by Dr. Goyal is that despite India’s immense cultural, natural, and historical wealth, international tourist arrivals remain dismally low.

“We have the majestic Himalayas, 43 UNESCO World Heritage Sites, and 7,500 km of coastline—yet we receive only 11.5 million international tourists annually, while our smaller neighbors attract far greater numbers.”

His prescription: aggressive international marketing, enhanced connectivity, better tourism infrastructure, and a consistent national branding strategy.

A Vision Rooted in Reality

Dr. Subhash Goyal’s interventions aren’t rhetorical; they are policy-driven and evidence-based. As someone who has spent his career at the intersection of business and governance, his recommendations carry both industry wisdom and urgency. At a time when global travel is being reshaped post-pandemic, India has a chance to reposition itself — but only if it listens to voices like his.

For a country with the spirituality of Varanasi, the backwaters of Kerala, the grandeur of Rajasthan, and the vibrancy of Goa, the tourism potential is infinite. The challenge lies in converting that potential into policy and presence.

Dr. Goyal’s message is clear: open the skies, invest in visibility, make travel affordable — and the world will come to India.

You Might Also Like...

Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments