Eco-tourism, or sustainable tourism, has emerged as a significant segment within India’s vast tourism industry. In India, eco-tourism is characterised by its commitment to conservation and local community engagement, and it leverages the country’s diverse ecosystems and rich cultural heritage to offer responsible travel experiences. 

India’s eco-tourism market is showing robust growth, mirroring global trends towards sustainability. According to the World Travel & Tourism Council (WTTC), the travel and tourism sector contributed 6.8% to India’s GDP in 2018, with eco-tourism being a growing part. The National Mission on Biodiversity and Human Well-Being reports that protected areas, often the focus of eco-tourism, have seen a visitor increase, contributing significantly to conservation funding and local economies.

India’s sustainable-tourism market was valued at $26.01 million in 2022 and is expected to rise to $151.88 million by 2032 at a compound annual growth rate (CAGR) of 19.3%, according to a report by The Federation of Hotel and Restaurant Associations of India (FHRAI), KPMG and the PHD Chamber of Commerce and Industry (PHDCCI). This growing market also has the potential to boost the services sector and ensure long-term development.

The Indian government has launched several initiatives to bolster eco-tourism. Notably, the Swadesh Darshan Scheme promotes the development of thematic tourism circuits, including eco-circuits. Under this scheme, projects worth over ₹600 crores have been sanctioned for the Northeast region alone, aiming to highlight its ecological diversity (Ministry of Tourism, Government of India).

With its vast and varied landscapes, India offers an immense potential for eco-tourism. The Indian Ministry of Tourism estimates that eco-tourism could account for up to 20% of the total tourism market in India by 2028, driven by increasing demand for sustainable travel options among both domestic and international tourists.

Destinations like the Sundarbans National Park, which hosts over 100,000 visitors annually (UNESCO World Heritage Centre), and Kerala’s backwaters, attracting around 500,000 tourists yearly (Kerala Tourism), exemplify India’s eco-tourism appeal. These regions not only support biodiversity conservation but also generate substantial revenue, demonstrating eco-tourism’s economic and environmental benefits.

Innovation and sustainability are at the forefront of eco-tourism developments in India. The government’s recent launch of a ₹450 crore eco-tourism circuit project in Kerala aims to enhance infrastructure while preserving the state’s natural beauty and biodiversity (Ministry of Tourism, Government of India).

Himachal Pradesh government had also identified 11 eco-tourism sites, including Swaar, Saurabh Van Vihar, Neugal Park and Bir-Billing in Palampur forest division, Kasol, Kheer Ganga and Sumarupa in Parvati forest division, Sojha in Seraj, Narkanda in Kotgarh and Shogi camping site besides Potter Hill camping site under Shimla forest division.

The Indian eco-tourism sector offers attractive investment opportunities, supported by favorable government policies. The Ministry of Tourism’s approval of 100% Foreign Direct Investment (FDI) under the automatic route for the tourism and hospitality sector is a significant incentive (Department for Promotion of Industry and Internal Trade, Government of India). 

The intersection of government support, increasing global interest in sustainable travel, and significant investment opportunities positions India’s eco-tourism sector for remarkable growth. As eco-tourism continues to gain momentum, it presents a compelling avenue for investors and stakeholders to contribute to sustainable development while tapping into the rich tapestry of India’s natural and cultural heritage.

Hotel investors are increasingly recognizing the untapped potential within India’s burgeoning eco-tourism sector. With a growing global emphasis on sustainability and responsible travel, there is a compelling case for the development of eco-friendly hotels and retreats that cater to the eco-conscious traveller. These establishments can be designed to minimize their environmental footprint, by using renewable energy sources, sustainable building materials, and water conservation systems. 

Recent initiatives by Odisha’s tourism have introduced a flagship programme known as ‘Eco Retreat,’ praised for its sustainable and eco-conscious model. Notably, the Chief Minister, Naveen Patnaik, has inaugurated four new eco retreats in exotic destinations, marking a milestone in the state’s tourism journey. Debrigarh Ecotourism has achieved visionary economic revenue of Rs.3.45 Crore (approx 3.5 Crore) during this financial year (1st April’23 to 31st March 24) with 70,000 tourist footfall – highest revenue in Odisha. A total of 13 new sites have been recognised as an eco-tourism spot by the government already. 

By investing in eco-tourism, hoteliers not only contribute to the conservation of India’s unique ecosystems and support local communities but also tap into a rapidly expanding market segment. The creation of eco-retreats, which blend luxury with sustainability, offers guests immersive experiences in nature while promoting environmental education and cultural appreciation. Such investments align with global sustainability goals and respond to consumer demand for travel options that offer meaningful, enriching experiences without compromising the planet’s well-being. This strategic alignment not only fosters long-term profitability but also positions investors as leaders in the vital transition towards more sustainable tourism practices.