Role of Tourism in Economic Development: A Case Study of Koraput District of Odisha

Tourism and hospitality is an important parameter of socio-cultural identity and heritage of a country. In the era of globalization tourism and hospitality enhances the economic growth by job creation, source of foreign exchange and development of regions with potential for tourism. According to World Travel and Tourism Council (2014), the contribution of travel and tourism in world GDP is estimated to increase from 9.5% of GDP in 2013 to 10.3% of GDP in 2024 (WTTC, 2014).Tourism and hospitality industry contributes 6.8% of GDP of India, contributes 7.7% in total employment generated and provides foreign exchange of US$18.13 billion . The tourism and hospitality sector is the third largest source of foreign exchange for India. The investment in tourism creates more jobs as compared to other sectors of economy. An investment of Rs. 10 lakh in tourism sector is estimated to create 89 jobs in hospitality industry as compared to 45 jobs in agriculture and 13 jobs in manufacturing sector (Planning Commission).Hotel industry generates revenues of US$ 400-500 billion annually. In India tourism and hospitality has emerged as a sunrise industry with rise in number of foreign tourists.