India's policy think tank, NITI Aayog, has unveiled a comprehensive plan to revitalize the nation's tourism sector. The proposals, detailed in its report Unlocking Growth in Tourism and Hospitality Sector, advocate for significant regulatory reforms, including a Visa-on-Arrival (VoA) regime for travelers from specific countries and streamlined approval processes for hotels.
Visa Reforms to Boost Arrivals
A cornerstone of NITI Aayog's recommendations is the introduction of a 90-day, multiple-entry Tourist Visa-on-Arrival for visitors from selected nations. This would allow eligible international tourists to obtain visas directly at designated airports and seaports, bypassing the need for advance applications and reducing bureaucratic hurdles. The aim is to make India a more accessible and attractive destination.
Beyond VoA, the report suggests simplifying India's existing visa architecture. This includes reducing numerous e-visa sub-categories into a more manageable set of broad-purpose visas covering tourism, business, short-term medical treatment, student travel, and attendant visas. To encourage repeat visits, NITI Aayog also proposes allowing multiple entries during a visa's validity period, implementing faster processing for frequent travelers, and integrating visa systems with broader tourism services. A Tourist Refund Scheme (TRS), enabling foreign tourists to claim GST refunds on purchases, is also under examination.
Streamlining Hotel & Business Operations
The report also addresses significant regulatory bottlenecks faced by the hospitality industry. It recommends scrapping project-stage approvals by the Ministry of Tourism for hotels and introducing a single health trade license and a unified liquor license for hotels operating multiple restaurants and service areas within the same premises. The requirement for an Eating House License for food and beverage establishments may also be removed.
Further proposals include extending the validity of liquor licenses and FSSAI registrations, along with simplifying approvals through digital integration and single-window mechanisms. NITI Aayog highlights that hotel projects in India typically take 36-48 months from approval to commissioning, significantly longer than the 12-18 months seen in competing ASEAN destinations. This delay increases project costs and hinders capacity creation, despite strong domestic tourism demand.
Economic Impact and Future Vision
In 2024, India welcomed approximately 20.6 million international tourist arrivals, including Non-Resident Indians (NRIs), with foreign tourist arrivals alone reaching 9.95 million. During FY24, tourism contributed an estimated ₹15.73 lakh crore (5.22% of GDP) and supported around 84.6 million jobs. NITI Aayog emphasizes that simplifying regulations, improving ease of doing business, and making entry procedures more traveler-friendly are crucial steps for India to achieve its ambition of becoming a leading global tourism destination.