BHUBANESWAR: Even as the services sector registered rapid growth reaching double-digit figure of 13.1 per cent in the state, the share of tourism industry witnessed a declining trend over the last six years though there was a marginal increase in 2018-19 from the previous year.
According to Odisha Economic Survey, the services sector, which has emerged as the key driver of the economy, constitutes 41.6 per cent of the Gross State Value Added (GSVA) in the last fiscal with a significant share in output and employment.
While the sector provided employment to nearly one-fourth of the total workforce, trade, repair, hotels and restaurants contributed the majority share to the output from services that support the growth of other sectors in the economy.
With consistent rise in per capita income and improved socio-economic indicators, share of the service sector in GSVA has grown from 38.5 per cent in 2011-12 to 41.6 per cent in 2018-19.
But surprisingly, the share of hotels and restaurants to the GSVA has declined from 2.3 pc in 2011-12 to 2.1 pc in 2018-19 despite the state having high tourism potential.
The contribution of the sector was almost constant at 2 per cent in 2014-15 and 2017-18.
The share of the sector increased to 2.1 per cent in 2018-19 from 2 pc in 2017-18 due to visit of foreign tourists during the Hockey World Cup last year.
As growth of the sector is linked to tourist footfall, lack of adequate air and rail connectivity to the non-coastal parts of the state having tourism potential is a major reason behind the dismal contribution.
The report suggested that since various forms of tourism including cultural, religious and eco-tourism have grown significantly and contributed to the state’s output, the focus should be on expanding upcoming areas like sports and film tourism.
Chairman (Odisha chapter) of Indian Association of Tour Operators (IATO) Gagan Sarangi said the growth is less because the state has failed to attract more foreign tourists.
“Given its rich cultural heritage, though there is ample scope for developing tourism, the state needs to expedite its investment in infrastructure in order to attract overseas tourists,” he said.
The periodic labour force survey data for 2017-18 shows that nearly 24.8 per cent of workers are engaged in services sector which is an important contributor and driver of growth and development of the state’s economy.
However, trade and repair is the largest contributor to the services sector’s output.
While trade and repair contribute the highest 22.7 per cent, transport, storage and communication make up 18 pc and real estate and professional services contribute 17.7 per cent.
The share of public administration and defence is 13.2 pc and others is 18.2 per cent.