OneTAC – The UPI moment in the tourism sector?

Building on India stack, the tourism stack can transform the sector and be the force multiplier for the economy. Sneak peek into how OneTAC national mission is being envisioned as the first pilot takes shape.

At one level, India is truly endowed in what it can offer in the world of tourism, art and culture (TAC). From mountains to beaches, deserts to wildlife, this continent-sized country boasts of the entire range of experiences nature has to offer. Equally, thanks to its long arc of history and vibrant traditions, it has a rich legacy of monuments, art, culture, handicrafts and food that make it a traveller’s delight. From palaces to temples, yoga to ayurveda, festivals to weddings, India is a compelling destination for unique experiences. Not to forget that the country boasts of 43 Unesco World Heritage sites like Taj Mahal, Hampi and Khajuraho.

Yet, the country’s tourism sector is a laggard. In 2023, Thailand welcomed 28 million and France got 100 million global tourists as compared to India’s 9.5 million. India’s tourism sector, pegged at $256 billion, employs 45 million people and contributes 7% to the Indian economy. But the sector is underperforming and holds enormous potential – from both economic and employment opportunities – if as a country we play our cards well.

It is time for India’s tourism sector to leapfrog. Something that it has done well in so many areas – in telecom with mobile phones, in banking with digital payments and on internet penetration with cheap data. All this enabled by the digital public infrastructure or India stack – UIDAI, DigiLocker, DigiYatra, ONDC and UPI – that we have been building over the last decade.

OneTAC as a national mission aspires to do that for India’s tourism sector. Put simply, the tourism stack is a nation-wide, open, digital distributed network that will facilitate discovery, authentication and transactions in the TAC space. OneTAC is building a digital public infrastructure to reimagine the experiences and entertainment industry in the tourism, art and culture space. It will host all shades of players – big and small, niche and mainstream – in the TAC sector, connect service providers directly with consumers, improve discoverability while adding both authentication and payment layer for a seamless end-to-end experience.

Supported by the Ministry of Tourism, Government of India, along with the Government of Karnataka – where the first pilots are being done in Bengaluru – the OneTAC mission is being spearheaded by a diverse grouping of organisations – we call them the “OneTAC Collaborative” – like FIDE, UnboxingBLR foundation, Culkey Foundation, EkStep and several more.

Let us unpack the tourism stack and simplify to help you understand the framework around which OneTAC is being envisaged and the first pilot implementation is being built in Bengaluru. Bear in mind that this is a work in progress as building blocks are slowly falling in place.

OneTAC will stand on three foundational pillars – OneTAC grid or the digital layer; policy and governance layer; the community layer.

Pillar 1: OneTAC digital grid

This is the digital backbone of the OneTAC national grid. Integrated with other national DPIs like ONDC, UPI and Bhashini, this will be the infrastructure layer that will enable suppliers and customers to get onboarded, register, authenticate and transact in a reliable manner using digital trust tools. Think of you travelling to Hampi and wanting to book a cab ride, engage a local tour guide and book a homestay in the vicinity. This grid will allow for easy search, discoverability and make payments in a secure trust-worthy manner. It will also be able to tap into emerging technologies like AI & AR/VR to both augment and personalise end user experience.

Pillar 2: Policy & governance layer

To shape the first pillar, OneTAC grid will need to evolve a certain framework and a governance model that will set the terms of engagement, regulate transactions and behaviour so that there is responsible participation from all – service providers and consumers – in the ecosystem. Think of how you as a consumer will engage with the tour guide in Hampi, how that relationship will be governed and regulated and what happens if anyone reneges on their promises. Think of content creators on the platform – how do we restrict illegal content like porn. How do we create checks and balances, protect user rights as they share sensitive personal information – like travellers data – with partners on the grid. In the case of UPI, for example, it is regulated by the RBI.

Few factors make OneTAC different. Tourism is a state subject with a very diverse set of stakeholders. Hence, its governance and policy architecture ought to be imagined differently. Think of how NEP (National Education Policy) works where the Centre sets the national framework with states interpreting it in their own ways. Even better, consider Ayushman Bharat National Mission where the national authority creates the digital infra but every state creates its own mission.

OneTAC will require a multi-party governance structure where the Center, the state and the civil society all will have important roles to play. While the center will set up the national digital grid to give a framework and direction, each state should have the flexibility to interpret and build it in their own way. This will require some imagination on their behalf. For example, how do we bring legitimacy or an accreditation system for solo unorganised players like tour guides, homestays etc to maintain a certain hygiene in customer experiences. The National Health Mission does accreditation for doctors, nurses with medical licences but in the case of tourism it has to be imagined innovatively.

While at the Center a steering committee helmed by the Ministry of Tourism could anchor the building of the grid infrastructure, the operational ownership will lay with the states. And the states must look at truly a multi-party committee – more like a cooperative with representation from the government, the industry and the civil society – to craft its policies.

This brings us to the third pillar of OneTAC.

Pillar 3: Community

Unlike a few other DPIs where the growth has been often top led, in tourism, for OneTAC to gain traction it must be bottoms up. How do we create an inclusive and sustainable network of local stakeholders – from cultural custodians, curator of experiences, local governments at the village/district/city level and grassroot organisations – who play an important role in shaping an individual’s experience in any location. The OneTAC grid must envision having several small, decentralised, localised TAC networks – say of tour guides and artisans – who bring diverse on-the-ground insights ensuring each region’s unique geographic, linguistic and cultural elements are curated and presented well.

Take for example, a local OneTAC for Bengaluru. From food influencers to walk curators, cultural venues to pubs, the city grid must be able to nurture and host these networks of players and operators to help consumers find what they seek. Such grounds-up decentralised OneTAC networks will enable unique local ecosystems to plug into the national TAC community without sacrificing their authenticity, trust or cultural character. It will promote the revival of traditional Indian art forms, empower artisans with digital tools for direct market access and shift tourist experiences from passive sightseeing to more curated and immersive cultural experiences. AI and India’s Bhashini will also build on emerging technologies like AI & AR/VR to rapidly augment end-user personalisation of experiences.

These are still early days. There are many unanswered questions as the DPI for tourism is being imagined. But OneTAC has the potential to ring in the UPI moment for India’s tourism sector if we play our cards well. For this to take off, we will need all stakeholders – government, industry and civil society – to come together. And if we get it right, the upside for India, Indian economy and jobs is enormous. This can be the force multiplier that can propel us towards the goal of Viksit Bharat 2047.