Cashless Economy and Digitalization of Tourism & Hospitality Practices in India

Abstract

Travel, Tourism and hospitality are the service oriented industry. Tourism is the fastest growing sector in India among the G20 countries which is growing by 8.5% in 2016 and forecast 6.7% in 2018. According to World Travel and Tourism Council (WTTC) India's travel and tourism sector ranks 7th in the world in terms of its total contribution to the country's GDP, generated Rs. 14.1 trillion (USD208.9 billion) in 2016, which is world's 7th largest in terms of absolute size; the sum is equivalent to 9.6% of India's GDP. As per the report of UN World Tourism Organization (UN-WTO) reflects that India had approx. 9 million foreign tourist arrivals(FTA)in the year of 2016, and ranked 40th position in the world. The new initiatives have been taken by Ministry of Tourism, Government of India has given new synergy to boost up Indian tourism industry i.e., new e-visa regime, investment through Make in India in tourism and hospitality sector, enable investment in vital infrastructure, and allow companies to do business in India. Although digital enabled technology centric tourism enterprises have tried to overcome this problem and supported by innovative digital practices like internet banking, mobile banking, e-wallets, debit and credit cards. But only e-banking or mobile banking tech-savvy customers were availing these privileges. The micro, small and medium tourism enterprises (SMTEs) had directly affected and both domestic and foreign tourists faced critical and worse situation that time. The tourists were frequently cancelling the hotels, airlines and holidays packages bookings which directly affected to travel agents and tour operators, hoteliers throughout the country. In spite of these loss of those people whose livelihood direct and indirect linked with tourism industry like tour guide, taxi drivers, souvenirs shopkeepers, home stays, restaurants, street vendors, rural tourism centric enterprises and those who supplying necessities like, farmers, milkman, grocers, handicraft and handloom artists, music and dance artists etc. This paper is based on the explorative study which will review the process of digitalization, through transformation and innovation of digital payments system to promote a cashless tourism practices in India.