Even the disastrous tsunami didn't affect India's tourism industry, as tourist arrivals in India rose 23.5 percent in Dec 2004 and tourist arrivals crossed 3 million mark for the first time in 2004.. The disaster was expected to have a negative impact on India's tourism in terms of large-scale cancellations of tourists to India but nothing of that sort was seen.
There could be several reasons for the buoyancy in the Indian tourism industry. First, the upward trend observed in the growth rate of Indian economy has raised middle class incomes, prompting more people to spend money on vacations abroad or at home. Also, India is booming in the information technology industry and has become the IT center. Aggressive advertising campaign " Incredible India" by the government has also had contribution in changing India's image from that of a land of snake charmers, and sparking new interest among overseas travellers.
It is not hidden that tourism is among India's important export industries. Even with comparatively low levels of international tourist traffic, tourism has already emerged as an important segment of the Indian economy.
Tourism also contributed to the economy indirectly through its linkages with other sectors like horticulture, agriculture, poultry, handicrafts and construction. Foreign exchange earnings from tourism during 2003-04 were US $ 3,533 million ( Rs 16,429 crore).
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