The heritage tourism industry is transforming cultural preservation into a cornerstone of sustainable development, as it fosters a delicate balance between preservation and economic growth. To showcase the significance, combat challenges and discuss the way forward for the sector, PHD Chamber of Commerce and Industry and KPMG in India has launched a report titled ‘Heritage tourism as a tool for sustainable tourism’ at the 13th edition of PHDCCI’s International Heritage Tourism Conclave. This comprehensive report delves deep into key areas such as the sector's pivotal role in sustainability, detailed market analysis, and the critical challenges it faces. It identifies seven essential pillars for sustainable heritage tourism development, from effective government initiatives to strategic marketing and international recognition.
Highlighting India's vast cultural and historical wealth, the report provides a compelling case study, underscoring the nation's potential as a global heritage tourism hotspot. As we navigate the post-pandemic landscape, the report shares recommendations aimed to fortify India's heritage tourism sector. By attracting visitors to iconic sites like the Taj Mahal, Hampi, and Rajasthan's forts the sector will continue to thrive by preserving India’s cultural legacy through conservation efforts, infrastructure upgrades, and local economic empowerment.
Key highlights from the report include:
Heritage tourism – global scenario
- Post-pandemic, in 2023, the travel and tourism sector contributed 9.1% to the global GDP; an increase of 23.2% from 2022 and only 4.1% below the 2019 level
- The sector is responsible for more than 50 million jobs in APEC countries and indirect benefits are estimated at USD 1 billion and account for further 75 million jobs across the region
- In 2023, there were 27 million new jobs, representing a 9.1% increase compared to 2022, and only 1.4 per% below the 2019 level
- Domestic visitor spending rose by 18.1% in 2023, surpassing the 2019 level
- International visitor spending registered a 33.1% jump in 2023 but remained 14.4% below the 2019 total
- The global heritage tourism market size reached USD 587.1 billion in 2023, is expected to reach USD 813.5 billion by 2032, growing at a CAGR of 3.69% during 2024-2032
Heritage tourism in India
- There are 42 world heritage properties in India out of which 34 are cultural properties, seven are natural properties and one is a mixed property
- The Archaeological Survey of India (ASI) protects 3687 national monuments, out of which, 116 monuments across 19 states are ticketed monuments (NITI Ayog, 2019)
- Revenue generated by ticketed ASI monuments – 2013 to 2023: Rose from INR 101.5 Cr in 2021 - 2022 to INR 252.85 Cr in 2022 - 2023. The highest revenue was recorded in 2016 - 2017 for INR 224.77 Cr
- Digital engagement and virtual tours – Utilisation of digital platforms for virtual tours and interactive experiences. The Archaeological Survey of India (ASI), for instance, developed virtual tours for sites such as the Taj Mahal and Qutub Minar
- Comparing the circle wise footfalls of tourists in 2022-23, the greatest share of footfall has been observed in Agra, followed by Delhi
Focus on sustainability and responsible tourism
- 83% of global travellers consider sustainable travel vital, with 61% indicating an increase in desire to travel sustainably
- The global sustainable tourism market is projected to reach USD 1.51 trillion by 2024, constituting 2 to 5% of the travel and tourism industry, with an expected CAGR of 23.8% from 2024 to 2034
- In India, the Swadesh Darshan 2.0 programme aims at developing tourism infrastructure aligned with sustainable principles
Vivek Agarwal, Head - Public Infrastructure KPMG in India, “Heritage tourism not only celebrates our past but also shapes our future by fostering economic growth, community empowerment, and global cultural exchange. Our analysis highlights India's pivotal role in global heritage tourism, emphasizing strategic pillars for sustainable development. From effective government initiatives and community engagement to leveraging technology and strategic marketing, India's potential is vast. As India navigates the aftermath of the COVID-19 pandemic, our insights aim to assist policymakers and stakeholders in harnessing the nation's cultural assets for resilient, sustainable tourism development.”
Aalap Bansal, Partner Industrial & Infrastructure Development Advisory (IIDA), “Embracing India's rich cultural heritage isn't just about preserving our past; it's about forging a sustainable future through strategic development. Heritage tourism offers a unique opportunity to integrate our historical assets with modern infrastructure and industrial growth. By investing in our cultural treasures, we not only attract global visitors but also stimulate local economies and foster community development. Through consist investments in industrial and infrastructure initiatives we can build a legacy that honors our heritage."