New Delhi, Jan 26 The rapid development of smaller cities in India is expected to generate 24 million talent opportunities in tier 2 and 3 markets by 2033, with a balanced workforce comprising 75 per cent male and 25 per cent female talent, according to a new report.
As per the World Travel and Tourism Council (WTTC), India’s travel and tourism GDP is projected to grow at an average annual rate of 7.1 per cent over the next decade. Currently, the tourism and hospitality sector contributes approximately 8 per cent to India’s total employment.
This momentum is expected to accelerate, with sectoral spending projected to rise by 1.2 times by 2034, emphasising the need for a highly skilled workforce to meet future demands, said the report by NLB Services, a global technology and digital talent solutions provider.
While metropolitan hubs have traditionally driven India’s tourism economy, tier 2 and 3 cities are emerging as key contributors. Travellers are increasingly seeking unexplored destinations, fuelled by the rise of staycations post-pandemic, improved connectivity and a growing inclination toward religious tourism.
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Religious tourism, in particular, has been a significant driver of growth, gaining momentum year after year.
The sector is expected to generate $59 billion in revenue by 2028 and create a significant number of temporary and permanent jobs by 2030.
The increasing reliance on gig and temporary workers is providing flexible employment opportunities, especially during peak seasons.
For instance, Mahakumbh 2025 is anticipated to generate an estimated 1.2 million gig and temporary jobs across various roles, including hotel staff, tour guides, and travel coordinators, to manage the massive influx of visitors.
Religious tourism hubs like Ayodhya, Ujjain, Badrinath, Varanasi, Haridwar, Mathura, Tirupati, Amritsar, Bodhgaya are spearheading this growth, said the report.
Beyond religious tourism, cities like Lucknow, Jaipur, Jodhpur, Kochi, Rishikesh, Ahmedabad, Shillong, Guwahati, and Agra are witnessing remarkable growth due to their cultural significance and enhanced connectivity.
Trends like destination weddings, adventure sports tourism, ecotourism, cultural tourism, and rural tourism are further propelling these destinations.
To sustain this growth and meet future workforce demands, focus on the upcoming budget will also be critical. Incentives that promote training for tour guides, hotel staff, logistics operators, and local artisans can strengthen the sector’s foundation, said the report.
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