By Vivek Pattanayak in Bhubaneswar, May 12, 2017 : What worries the world today is lack of spectacular growth in the economies. Except India and China rest of the world is going through a decade of stagnation since the financial crisis of 2007/08 although a flurry of economic activities are taking place in emerging markets and developing countries.

Since Europe is somnolent and USA is not consistent with regard to rapid recovery economists, policy makers, and politicians are concerned. How to rekindle the global economic engine is being debated at all national conclaves in India and elsewhere and international fora from World Economic Summit in Davos to G-20. Interestingly there is no shortage of liquidity and money although productive, manufacturing and employment generating investment is slow.

Here an attempt is being made to offer some trends and suggestions which are especially relevant for India although they can have world wide ramifications and applications. There is steady but consistent increase of population with higher spending ability from South America to Central America, from Africa to Central Asia and from the sub-continent of India to Asia. This category of people are not very much rich like High Net Worth Individuals (HNIs) but they are also not very poor either who are or can be called middle class. Some are lower and some are upper and some are in between.

Rising middle class across the world will have a tremendous impact on economic and social life in all the continents. According to reliable study, by 2035 one third of the population of the world would constitute middle class who would have the spending power to acquire decent houses, can afford to have air conditioned cars and be able to travel for leisure traveling long distance even going beyond their national frontiers. Eating out in the weekend, occasionally during week days and traveling during holidays is a middle class pre-occupation. This phenomenon is more pronounced in China, Indonesia, Philippines, Brazil, South Africa, Mexico and more specifically in India which has, as it is, almost three to four hundred million people who can be called as middle class by any standard or definition.In addition rich and middle class people of North America, Europe, Japan and Australia travel for tourism.

Aging population in North America, Europe, Japan, Russia, China and India have more leisure time for visiting new places. Health conditions of people in the age group of sixty five and seventy are far better now than what it was fifty years ago. Medical facilities, health insurance coverage and wide availability of modern medicines have helped the aging population to be more fit to travel now than before. Baby boomers in North America have retired but they have money and time to travel for pleasure.

Spending power of upper and middle class in the emerging markets, baby boomers in the West, aging population in the upper class in industrialized countries is high. They are looking for leisure. Travel and tourism including exploring new destinations are their main sources of relaxation, pleasure and interest.

Transportation system in the world has diversified and vastly improved in last three decades. Air transport has expanded unimaginably in the last quarter of a century with introduction of large sized long distant jet aircraft. Cruise ships have given a new dimension to travel for pleasure. The railway system with bullet trains, TGV [high speed trains], and air conditioned coaches has made continental and sub-continental travel easy and comfortable.

The road transport with construction of highways, expressways,and other motorways have enabled fast moving vehicles including electric cars to be on the road which have made road travel of long distance not only affordable but also enjoyable.Potential of growth is immense in the transport sector in India as is reflected through determined effort by the railways in India to expand to North East, call of NITI AYOG to connect each district by rail, focussed attention of the governments to complete highway projects, and emphasis that is now being given to regional connectivity in the aviation sector.

Countries whose economies are highly dependent on tourism are Greece, Spain, and Portugal in Europe and they promote their beaches and historical monuments in addition to France and Italy whose beaches are great attractions to international tourists apart from castles, museums, medieval and ancient monuments and archaeological sites. Costa Rica in Central America promotes beaches, forests, flora and fauna. Thailand, another country whose economy is highly susceptible to rise and fall of tourist traffic depend upon beaches and its folk culture.

India has beaches in Goa, Puri, Kerala, Tamil Nadu in addition to hill stations, forests, ancient monuments, cultural attractions like dances, music, art and sculptor. Odisha has earned a name for itself for its sand artistry apart from temples, forests, lagoons and sandy beaches Promotion of religious tourism attracts Hindus, Muslims, Christians, Sikhs, Buddhists, Jains and Jews from within the country and beyond.

In India railway system is improving, air transport has made spectacular progress more with regional connectivity, national highways and there exists a good potential for sea transport. In Odisha alone ports at Paradip, Dhamra, and Gopalpur have created infrastructure for sea travel. Cruise ships can operate from these ports carrying domestic and foreign tourists. Bhubaneswar has become an international airport with operations by Air India and Air Asia.

Odisha’s maritime history, Buddhist past and heritage can be leveraged to attract tourists from Japan, South Korea, China, Indonesia, Thailand, Malaysia, Singapore, Sri Lanka, and Myanmar. Promotion of air connections with Colombo, Singapore, Bangkok, and Rangoon and sea voyage from and to these places from Paradip and Dhamra can be promoted.

Construction of new hotels, resorts on sea fronts, on lakes and river fronts, development of new hill stations, roads, railways and air transport to connect the tourist destinations will kindle the economic growth in the country. These facilities can be developed by dovetailing the resources of private and public sector and in some suitable cases by encouraging private public participation (under PPP model). These constructions create demand for cement, steel and aluminium production and also spur quarrying and mining activities. Use of fly-ash which is generated by coal-based power plants for manufacture of bricks will create employment opportunity locally.

In Odisha alone hundred hotels in each year for next two years will have significant impact. Similarly construction of hotels and resorts in other parts of India will generate huge employment opportunity. Connections by roads, highways, trains, air transport can be vigorously pursued. As these activities fructify, in MSME sector restaurants, travel agencies, curio shops, shops of sale of artifact, jewellery, handicrafts, and handloom products can be promoted.

Entrepreneurs would need support through State Financial Corporations now moribund, Industrial Investment Corporations no longer being allowed to act as non-banking financial institutions, SIDBI desperately requiring leadership and Mudra needing greater support from the central bank, and where possible through start up by locating angel funding, private equity and crowd financing encouraging industrial behemoths to allocate more money under their CSR programme. A coordinated effort at national and state levels will yield positive results.

For tourism to grow in India the governments must implement “clean India” (Swachha Bharat) programme including cleaning beaches, rivers and cities and towns with utmost dedication and commitment. The law and order situation must be tightened.