The Report launched by the Ministry of Tourism and NITI Aayog highlights gaps and challenges in India’s tourism sector and present a roadmap for the future.

Challenges facing India's Tourism Sector

• Supply-demand mismatch: Inadequate hotel capacity and slow project execution (36–48 months) constrain growth.
• Regulatory fragmentation: Non-uniform state regulations, limited single-window integration, and uneven reforms across tourism segments.
• High compliance burden: Multiple approvals, restrictive standards, redundant procedures, and frequent compliance requirements.
• Rising outbound tourism: Higher overseas travel by Indians leads to leakage of domestic tourism demand.

Key Recommendations for Tourism Sector

• Infrastructure Development: Liberalise building norms, expand homestay capacity, and create an enabling environment for faster tourism infrastructure and private investment.
• Streamlined Approvals & Clearances: Fast-track environmental and CRZ clearances, introduce single licences, remove project-stage approvals, and implement a single-window online system for all approvals.
• Regulatory Simplification: Simplify FSSAI and other compliance requirements.
• Tourist Transport & Mobility: Introduce Visa-on-Arrival and simplify visa procedures; Reform permits, entry taxes, and vehicle registration for tourist transport.
• Tourism Entrepreneurship: Remove entry barriers for tour operators.