Uttar Pradesh has the potential to attract over 2.8 million foreign tourists by 2017 compared to over 2 million overseas backpackers in 2013.
According to a study 'Realising Tourism Potential of UP' by Associated Chambers of Commerce and Industry of India (Assocham), UP along with Tamil Nadu, Maharashtra and Delhi has ranked amongst the most sought-after tourist destination for both domestic and foreign travellers.
Increased thrust on tourism development by UP through steps like enhancing air connectivity, development of heritage sites, better management of pilgrimage places etc could create a million direct and indirect jobs alone.
"UP has become a prominent tourist hub for foreign visitors and is just behind India's top cities of Delhi, Mumbai and Chennai in attracting foreign tourists, earning foreign exchange and creating employment opportunities," Assocham secretary general D S Rawat said.
Besides, growth and of tourism in UP could mobilise investment in hospitality sector from both private & public sources and attract indirect revenue like tax collections thereby filling state's coffers.
Total tourist arrival in UP had increased by 34% year-on-year (y-o-y) from about 170 million in 2012 to 230 million in 2013, the study revealed.
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Clocking compounded annual growth rate (CAGR) of 8%, UP attracted over 2.05 million foreign tourists in 2013 and ranked fourth with 10% share in total inflow of roughly 20 million foreign tourists visiting India. Agra (59%), Allahabad (18.5%) and Sarnath (17%) are the most-visited destinations by foreign tourists in UP.
Meanwhile, UP has ranked second most-visited destination for domestic travellers with over 220 million Indian tourists visiting the state in 2013, thus accounting for almost 20% share in total number of over 1.14 billion domestic tourist visits made throughout India.
Further, Buddhist tourism is catching up as UP is home to places like Sarnath, Kushinagar, Sankasia, Kaushambi and Sravasti which together attracted over 2.7 million tourists in 2013, growing at CAGR of 5%. It is expected to rise to 3.3 million by 2017.
Assocham suggested UP needed to open up its tourism sector to attract private investment by conducting road-shows, offering incentives like land allotment, offering significant interest subsidy on hotel projects.