Medical and Wellness Tourism in India

LARRDIS[Type text] [Type text] [Type text] MEMBERS REFERENCE SERVICE LARRDIS

LOK SABHA SECRETARIAT NEW DELHI

REFERENCE NOTE

For the use of Members of Parliament NOT FOR PUBLICATION

No. 15/RN/Ref/Jan/21

Medical and Wellness Tourism in India

Prepared by Shri Sai Dinesh Shetty, Research Officer (7620647498) and Shri V. Thomas Ngaihte, Additional Director (23034926) of the Lok Sabha Secretariat, under the supervision of Shri Pradosh Panda, Director (23035632/23035391) and Smt. Kalpana Sharma, Additional Secretary (23034845).

The Reference Note is for personal use of the Members in the discharge of their Parliamentary duties, and is not for publication. This Service is not to be quoted as the source of information as it is based on the sources indicated at the end/in the context. LARRDIS[Type text] [Type text] [Type text]

At a Glance

 In the Indian context, the contribution of Tourism to the GDP and jobs generated in the year 2018-19 is 5.00% and 12. 95 %, respectively1  The share of India's Foreign Tourist Arrivals (FTAs) during 2019 was 0.75%2. The Government sets it target to increase India's share of Foreign Tourist Arrivals to 2% by 2025.  The tourism sector has been one of the hardest hit amongst the various sectors in India. As per the United Nations World Tourism Organization (UNWTO) report for August/September 2020, Asia and the Pacific was the most affected regions with 72% less international tourist arrivals till January-June 20203.  Some of important incentives and initiatives have been undertaken to boost Tourism in India post Covid-19 Lockdown include: ‘Dekho Apna Desh’, ‘Stranded in India’ portal, National Integrated Database of Hospitality Industry (NIDHI), System for Assessment, Awareness & Training for Hospitality Industry (SAATHI).  India has emerged as a major Medical Tourism destination. As per a FICCI-IMS Knowledge Paper titled, ‘Medical Value travel in India: Enhancing value in MVT’, published in 2016, India is amongst the top 6 MVT (Medical Value Travel) destinations of the world.  The Department of Commerce and Services Export Promotion Council have launched a Healthcare Portal www.indiahealthcaretourism.com, as a single source platform providing comprehensive information of medical travelers on the top healthcare institutions in the country.

Tourism industry contributes significantly to the economy of the country, both in terms of contribution to the GDP and generating employment, apart from being a key sector for foreign exchange earnings. Tourism industry in India is highly diverse. There are micro, small, medium and large enterprises across the whole spectrum.

As per the United Nations World Tourism Organization (UNWTO) report for August/September 2020, the share of India’s International Tourist Arrivals (ITA), which includes foreign tourist and non-resident nationals in 2019 was

1 http://164.100.24.220/loksabhaquestions/annex/174/AU50.pdf 2 ibid 3 http://164.100.24.220/loksabhaquestions/annex/174/AU1247.pdf LARRDIS January 2021

1.23%4. The share of India's Foreign Tourist Arrivals (FTAs) during 2019 was 0.75%5. The Government sets it target to increase India's share of Foreign Tourist Arrivals to 1% by 2020 and to 2% by 2025. The contribution of tourism to the GDP and jobs generated in the year 2018-19 is 5.00% and 12. 95 %, respectively6.

Impact of Covid-19 on tourism in India.

COVID-19 pandemic has adversely affected various economic activities and has brought about many challenges. The tourism sector has been one of the hardest hit amongst the various sectors in India. As per the UNWTO report for August/September 2020, Asia and the Pacific was the most affected regions with 72% less international tourist arrivals till January-June 20207.

No formal study has been instituted for assessment of the impact of covid- 19 on tourism sector in 2020-21. In view of the highly unorganized nature of the sector, the impact in numerical terms can only be ascertained in due course8.

Various incentives and initiatives undertaken to boost Tourism in India post Covid-19 Lockdown9.

India restored existing visas for business, conference, employment, studies, research, and medical purposes. Some of the recent initiatives are as follows:

‘Dekho Apna Desh’: The Ministry of Tourism launched the ‘Dekho Apna Desh’ initiative in January 2020 with the objective of creating awareness among the citizens about the rich heritage and culture of the country and encourage citizens to travel within the country, besides organizing a series of webinars under the theme Dekho Apna Desh.

‘Stranded in India’ portal: The Ministry of Tourism set up a portal ‘Stranded in India’ with a view to facilitate and extend support to foreign tourists who were stranded in the country on account of cancellation of flights/lockdown.

4 http://164.100.24.220/loksabhaquestions/annex/174/AU1328.pdf 5 ibid 6 http://164.100.24.220/loksabhaquestions/annex/174/AU50.pdf 7 http://164.100.24.220/loksabhaquestions/annex/174/AU1247.pdf 8 ibid 9 https://pib.gov.in/PressReleasePage.aspx?PRID=1668271

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National Integrated Database of Hospitality Industry (NIDHI): The Ministry of Tourism has created the National Integrated Database of Hospitality Industry (NIDHI) to get a clear picture of the geographical spread of the hospitality Sector, its size, structure and existing capacity. It will serve as a common repository of data from Ministry of Tourism, State Departments of Tourism and Industry and enable the Central and State Governments to deliver better support and services including policies and strategies.

System for Assessment, Awareness & Training for Hospitality Industry (SAATHI): Under this, the Ministry of Tourism along with the Ministry of Health assist and build the capacity of the hospitality industry in their preparedness for COVID-19 safety.

Scope and Opportunities in Medical and Wellness Tourism in India.

The Ministry of Tourism plays an active role of as a facilitator in terms of marketing this concept and promoting this in the key markets. It collates data regarding the arrivals on Medical and Medical Attendant visas provided by the Ministry of Home Affairs. The estimated Foreign Tourist Arrivals (FTAs) in the country on Medical purpose during the years 2015, 2016 and 2017 are 2,33,918, 4,27,014 and 4,95,056, respectively10.As per the latest available India Tourism Statistics at a Glance – 2020, the estimated Foreign Tourist Arrivals (FTAs) in the country on Medical purpose for 2019 is 69745311.

India has emerged as a major Medical Tourism destination. As per a FICCI-IMS Knowledge Paper titled, ‘Medical Value travel in India: Enhancing value in MVT’, published in 2016, India is amongst the top 6 MVT (Medical Value Travel) destinations of the world12.

Incentives and Initiatives by Government of India to promote Wellness and Medical Tourism

Some of the initiatives taken by the Ministry of Tourism to promote India as a Medical and Health Tourism Destination are as follows13:

10 http://164.100.24.220/loksabhaquestions/annex/171/AU377.pdf 11 https://tourism.gov.in/sites/default/files/2020-09/ITS%20at%20a%20glance_Book%20%282%29.pdf 12 http://164.100.24.220/loksabhaquestions/annex/17/AU66.pdf 13 http://164.100.24.220/loksabhaquestions/annex/173/AU1166.pdf

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 Launch of campaigns in the international markets including for medical tourism under the Incredible India brand-line; conducting Road Shows, Know India Seminars etc. The Ministry also produces brochures, CDs, films and other publicity materials.  Constituted National Medical & Wellness Tourism Board to provide dedicated institutional framework to take forward the cause of promotion of Medical Tourism,  Fiscal Incentives provided under Market Development Assistance (MDA) for participation in approved medical/Tourism Fairs/medical Conferences/Wellness conference/Wellness Fairs and its allied Road shows.  In addition, the Department of Commerce and Services Export Promotion Council have launched a Healthcare Portal www.indiahealthcaretourism.com14, as a single source platform providing comprehensive information of medical travelers on the top healthcare institutions in the country.

As per the guidelines formulated by the Ministry of Tourism, the following assistance is provided to eligible stakeholders15:

 Financial Assistance for participating in fairs/events/roads shows approved by the Ministry in the overseas markets under the Marketing Development Assistance (MDA) Scheme.  Financial Assistance in the ratio 50:50 for making publicity and promotional material subject to a maximum ceiling of Rs.10.00 Lakh.  Financial Assistance up to a maximum of Rs.25.00 Lakh on 50:50 sharing basis for organizing Wellness & Medical Tourism promotion shows.  Permission for the use of Incredible India logo for the Wellness & Medical Tourism promotion events, films, literature etc.  Financial support for training courses focused on skill providing, skill up- gradation and skill certification for the persons engaged in Wellness & Medical Tourism sector.  Provision of space up to 4 square meters to Wellness and/or Medical Tourism Associations at major international fairs.

14 http://164.100.24.220/loksabhaquestions/annex/171/AU377.pdf 15 http://164.100.24.220/loksabhaquestions/annex/171/AU377.pdf

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Annexure-I

Steps taken by Ministry of Tourism to overcome the crisis caused by COVID-19 pandemic in the tourism sector16.

(i) Detailed operational guidelines for COVID safety and hygiene have been prepared in order to create awareness, training and assessment of compliance of the guidelines. The program is aimed at building the capacity of the Hospitality industry particularly small and medium units to restart and grow their business. (ii) A robust information system / comprehensive data base of various accommodation units throughout the country has been created for coordinating and ensuring registration of all unclassified accommodation units. (iii) Operational recommendations for hotels, restaurants, Bed and breakfast (B&Bs)/ Home stays and Tourism Service Providers have been formulated and issued on 08.06.2020 to facilitate smooth resumption of business. (iv) Validity of approval or certifications of hotels and other accommodation units whose project approval / re-approval and classification / re-classification have expired / were likely to expire, has been extended up to 30th September, 2020. (v) The Ministry, in collaboration with QCI, has developed an initiative called SAATHI (System for Assessment, Awareness & Training for Hospitality Industry), for effective implementation of Guidelines/SOPs issued with reference to COVID 19 and beyond for safe operations of Hotels, Restaurants, Bed and breakfast (B&Bs) and other units. (vi) The Government has announced Atmanirbhar Bharat package vide which Rs 3 lakh crore collateral free automatic loan has been made available for MSMEs17. The loan will have 4-year tenure and will have 12-month moratorium. The Government of India has further amended the definition of MSMEs to bring service enterprises at par with manufacturing enterprises. These measures will also benefit tourism service providers.

The ministry has planned a detailed strategy to utilize technology to the fullest extent to overcome the setback created by the pandemic18.

 Incredible India digital platform, in collaboration with Google, features a variety of 360 degree walk-throughs and stories for prominent tourist attractions across the country. The content is provisioned on major tourist destination pages within the Incredible India website. These embedded walk-throughs provide an engaging experience to the viewer by providing them with immersive 360 degree photos. 360 degree walk-throughs have also been provisioned for prominent World Heritage Sites in India.

16 http://164.100.24.220/loksabhaquestions/annex/174/AU1328.pdf 17 http://164.100.24.220/loksabhaquestions/annex/174/AU1208.pdf 18 http://164.100.24.220/loksabhaquestions/annex/174/AU56.pdf

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 Digital media will be utilized fully to promote and spread awareness about the tourist destinations and activities and involve people to prepare them for their visits when the situation becomes normal. Incredible India Web Portal and Mobile App is further being enriched with content and tourist friendly features offering a high degree of personalization.  The Ministry of Tourism has launched the Incredible India Tourist Facilitator (IITF) Certification Programme – a digital initiative that aims at creating an Online learning platform with the objective of creating a pool of well trained and professional Tourist Facilitators across the country. This will help in creation of employment at the local level and even in the remote areas of the country having tourism potential.