Notable investor and market commentator Shankar Sharma delivered a scathing critique of India's tourism sector on Wednesday, highlighting multiple systemic failures that prevent the country from capitalizing on its potential. According to reports from NDTV Profit, Sharma pointed towards moral-policing culture, unsatisfactory infrastructure, safety concerns, unhygienic surroundings with open garbage, and poor driving ethics as key factors hindering tourism development. He emphasized that 'Goa could have been our Bali, Phuket. But for that we need a swinging liberal culture not moral policing. And yes we need garbage free roads.'
Sharma highlighted critical operational challenges that deter foreign tourists, particularly the lack of modern payment infrastructure. As reported by NDTV Profit, he pointed to a lack of facilities to take payments via international cards, making cash transactions the only viable option for visitors. This limitation, combined with safety concerns around carrying large amounts of cash, creates significant barriers for foreign tourists and limits the country's appeal as a premium destination.
The investor provided insights into the composition of India's tourism market, revealing significant gaps in premium visitor segments. According to NDTV Profit, Sharma estimated that out of the 90 lakh tourists who visit annually, NRIs comprise 40-50% of the number, while genuine F2 tourists (foreign tourists with premium preferences) make up only half of this portion. He emphasized that 'Out of the 90 lakh tourists every year that come, I am counted a minimum of 20 times because I visit India that many times per year.'
Sharma drew stark comparisons with successful Southeast Asian destinations, highlighting India's missed opportunities in tourism development. As reported by NDTV Profit, he noted that Bali attracts 80 lakh tourists annually with vibrant nightlife and super cheap pricing, while Phuket and Vietnam also execute well in tourism. He criticized that 'Other countries have not stood still and they have executed. People want amazing places to spend money on. Bali has 80 lakh tourists. Happening at night life. Super cheap. Phuket too. Vietnam. Here we only talk and that's where it ends.'
The market commentator identified specific operational bottlenecks that deter foreign visitors from choosing India as a premium destination. According to NDTV Profit, Sharma pointed to 'non-existent' roads and 'terrible driving ethics' as significant challenges that need immediate addressal. He also noted that 'When you look at it from the lens of F2 tourists, barring Taj Mahal & Rajasthan Palace Hotels, there is nothing else that they want to see here with they cannot get anywhere else.'
