How Does the Tourism Industry Work? Structure of Tourism Industry

. 7 min read
How Does the Tourism Industry Work? Structure of Tourism Industry

Travel and Tourism is one of the largest industries globally and has a major contribution to GDP. It has experienced the longest growth period. Tourism is nothing but an act of traveling from one location to another, whether for pleasure or business. It may be for at least 24 hours, but not exceeding a year. The reasons for making a trip are recreation, health or family reasons, missions, or business.

Scope of tourism?

So, what has been improvised in the last 15 years? The answer to this question is that, before 1950, tourism benefits were availed only by the wealthy section. From the 1950s to 2000, traveling became accessible to many people with the help of commercial airlines. After that, the travel industry’s growth bar graph only increased, travel costs reduced, and more people started investing in seeing the world.

Post-COVID 19

It is one of the most affected sectors which got affected due to COVID 19. The reason is imposing travel restrictions globally that include seizing of borders. The arrival of International tourists declined to 70% from January- August 2020 as per the latest UNWTO World Tourism Barometer survey.

People who have a significant contribution to running the tourism industry successfully.

  • Government organisation and Tourism boards
  • Suppliers and Vendors
  • Tour operators
  • Travel agents
  • Ground handlers
  • Travellers

What have these people done so far for the Tourism Industry?

Significance of Tourism Industry

1. Opened up Job opportunities

The tourism industry works so that it has opened up job opportunities in various sectors directly and indirectly.

2. Avail of better medical facilities

Many of the visitors are traveling India not only for seeing the sights but also coming for their medical treatments, surgeries, operations as India is known for offering a high quality of medical treatment. So, all the foreigners who cannot afford medical treatment in their own country come to India. It helps in improving the overall demand for the country’s economy based on sustainability.

3. Foster diplomatic relations

The tourism sector has a lot of potential in fostering diplomatic relationships between businesses and nation-states. It has opened opportunities for cultural exchange, creation, and entertainment. The tourism industry plays a crucial role in increasing the value of the currency. If we think from the traveler’s perspective, it becomes the reason for their happiness and well-being.

4. Facilitates Foreign Exchange

When the tourists are traveling from one country to another, it also facilitates foreign exchange, enabling the countries to engage in import and export to stimulate the economy. It helps in generating wealth and employment. On the whole, tourism is essential for boosting the economic growth of the country. India holds 14th rank in the world in the tourism sector for contributing to the GDP.

Important Sectors within the tourism industry


The transport sector helps the tourists in reaching their destination. It is a mode that travellers use to reach the desired destination and assist them in getting around after arriving at the destination.

The primary services related to transport are:


Railways are an important aspect of the tourism industry since the 19th century. It does not help only travellers but also provides overground and underground services.

Airline industry🛫

It plays a vital role in the travel industry by helping passengers access both overseas and domestic flights. Airways allow travellers to reach quickly at their intended destinations. The airline industry is divided into chartered and scheduled flights.

Car rental🚘

Many tourists also avail of this service. With the help of the car, tourists explore the city the way they want. The car services are available near the airport of a particular destination, or it can be arranged by the travel company with which you have made all bookings.

Water transportation🚢

It is used when a traveler is planning to visit the destination across the water. Some of the most popular water transports are Ferry, cruise liners, and ocean liners.

Coach services🚎

The bus and coach services are an essential aspect of the tourism industry, whether it is long-distance travel or helping the passenger reach their accommodation or going on a one-day city tour.


This sector is central to the hospitality and travel industry. It is quite natural that travellers, while visiting any of the destinations, will make their stay. When the stay exceeds 24 hours, it becomes an overnight accommodation.


It is one of the most common forms of accommodation for the hotel and tourist industry. Hotels offer paid lodging for the guests.


It is being used when the travellers are staying outdoors in a tent or a similar type of shelter. Tourists may choose the option of camping in commercial camping sites or camping in public areas. Rishikesh is one of the popular camping destinations for camping.


It has become one of the most popular forms of accommodation nowadays, where cruise travellers will be given their cruise cabin till the time they stay for the cruise. Abroad, the concept of cruises is very much in demand.

Food and beverages🍱

The food and beverages section plays an exciting role in boosting up the tourism industry. They have a responsibility of offering tourists essential refreshments at frequent intervals during their journey. It may be when they are spending on their selected accommodation or going out on a one day tour or for business reasons. Food and beverages also provide them with the opportunity of socialising and knowing new people in their surroundings.


One important place to meet food and beverages requirements is restaurants. Tourists always visit nearby restaurants like luxury and family restaurants when traveling for eating and socialising to experience high-end cuisine.

Bars and Cafes🍻

It is a place where tourists visit to make themselves feel relaxed. At this place, tourists consume alcohol, refreshments, and do socialise with their friends and family.


It is a place of entertainment where tourists visit at night. It attracts many tourists as in some destinations; the entire tourism industry is based on nightlife as we see in Goa.


Some tourists are traveling in pursuit of entertainment only. They choose the destination where there are entertainment attractions. From an economic perspective, many entertainment attractions are set to capitalise on the existing tourism industry.


It is one of the most preferred forms of entertainment for tourists all over the world. This facility is centred on gambling activities. Most games available in casinos for tourist entertainment are the games of chance; in some casinos, there are games available where skill is involved. In most places, Casinos are part of the hotels where other modes of entertainment like music or comedy shows are also set up for tourists.


Incredible India witnesses the tourists from both domestic destinations and overseas. The tourism industry has always been an integral part of the country and making all efforts to create exponential economic opportunities. The best thing that is impossible without the tourism industry’s actions is a cultural exchange between countries worldwide.

The Government of India in the future also keeps encouraging entrepreneurs to take part actively in promoting tourism, especially in underdeveloped areas, or you can say least popular. It is only possible to comprehend the region’s demographic, geographic, social, economic, and political environment.

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Q. What is the impact of COVID 19 on Indian Tourism?

Ans: The Indian Citizens and their close relatives cannot travel back and move freely under the scheme ‘travel bubble’ (repatriation living in the country since March) subjected to entry rules like their residing country’s quarantines. However, there is a minimal section of people who are allowed to visit India. It includes journalists, healthcare professionals, and some business travellers. Once you are entering India, you will be screened medically.

Q. What is the structure of the tourism industry?

Ans: There are seven components in the tourism industry in which different stakeholders are involved. All these components are connected. They are tourism boards, international organisations, national tourism boards, regional tourist boards, tourism information centers, accommodation services, and transport services.

Q. What is the contribution of the tourism sector to India’s growth?

Ans: According to the World Travel and Tourism Council, the tourism sector has generated 17 Lakh crore revenue, i.e., 9.2 percent of India’s GDP in 2018. The sector created 42 million jobs, i.e., 8.1 percent of total employment. The tourism sector is expected to grow by almost 6.9% by 2028.

Q. When will I be able to Travel to India from overseas in this pandemic situation?

Ans: Unfortunately, it is not likely to become possible shortly. As per the Economic Times, the leading tourism and hospitality body expected that there would be no international tourist visits till April 2021.