PROJECT REPORT

( Submitted for the Degree of B.Com. Honours in

Management under the University of Calcutta )
Title of the Project
Tourism Industry
Submitted by
Name of the Candidate: SANKET . A . SHAH
Registration No. : 0171121096612
Name of the College: THE BHAWANIPUR EDUCATION
SOCIETY COLLEGE
College Roll No. 0101121116
Supervised by
Name of the Supervisor: PROF. KUNAL SRIVASTAVA
Name of the College: THE BHAWANIPUR EDUCATION
SOCIETY COLLEGE

Month & Year of Submission

JANUARY,2015

ACKNOWLEDGEMENT
I owe a great many thanks to a great many people who helped and
supported me during making this project. My deepest thanks to Mr.
PROF. KUNAL SRIVASTAVA the Guide of the project for guiding
and correcting various documents of mine with attention and care.
He has taken pain to go through the project and make necessary
correction as and when needed. I also extend my heartfelt thanks
to my family and well wishers.

Annexure- IA

Supervisor's Certificate
This is to certify that Mr.SANKET.A.SHAH a student Of B.Com. Honours in Management of THE
BHAWANIPUR EDUCATION SOCIETY COLLEGE under my supervision and

guidance for his

Project Work and prepared a Project Report with the title TOURISM
INDUSTRY which he is submitting, is his genuine and original work
to the best of my knowledge.

Place:
Kolkata
SANKET.A.SHAH
Date:

Name:
Designation: STUDENT
THE BHAWANIPUR EDUCATION SOCIETY
COLLEGE

Annexure- IB

Student's Declaration
I hereby declare that the Project Work with the title TOURISM
INDUSTRY
submitted by me for the partial fulfilment of the degree of B.Com.
Honours in Accounting & Finance / Marketing / Taxation / Computer
Applications in Business under the University of Calcutta is my
original work and has not been submitted earlier to any other
University /Institution for the fulfilment of the requirement for any
course of study.
I also declare that no chapter of this manuscript in whole or in part
has been incorporated in this report from any earlier work done by
others or by me. However, extracts of any literature which has
been used for this report has been duly acknowledged providing
details of such literature in the references.

Name: SANKET.A.SHAH
Address:

Place: KOLKATA
48,Nehru Colony
Date:
017121096612

Registration NO. :-

What is tourism ?

Tourism is travel for recreation, leisure, religious, family or

business purposes, usually for a limited duration. Tourism is
commonly associated with international travel, but may also refer
to travel to another place within the same country. The World
Tourism Organization defines tourists as people "traveling to and
staying in places outside their usual environment for not more than
one consecutive year for leisure, business and other purposes". [1]
Tourism has become a popular global leisure activity. Tourism can
be domestic or international, and international tourism has both
incoming and outgoing implications on a country's balance of
payments. Today, tourism is a major source of income for many
countries, and affects the economy of both the source and host
countries, in some cases being of vital importance.
Significance of tourism

Tourism is an important, even vital, source of income for many

countries. Its importance was recognized in the Manila Declaration
on World Tourism of 1980 as "an activity essential to the life of
nations because of its direct effects on the social, cultural,
educational, and economic sectors of national societies and on
their international relations."
Tourism brings in large amounts of income into a local economy in
the form of payment for goods and services needed by tourists,
accounting for 30% of the world's trade of services, and 6% of
5

overall exports of goods and services. It also creates opportunities

for employment in the service sector of the economy associated
with tourism.
The service industries which benefit from tourism
include transportation services, such as airlines, cruise ships,
and taxicabs; hospitality services, such as accommodations,
including hotels and resorts; and entertainment venues, such
as amusement parks, casinos, shopping malls, music venues,
and theatres. This is in addition to goods bought by tourists,
including souvenirs, clothing and other supplies
Unique Characteristics of The Tourism Industry

There are four main characteristics which distinguish the tourism

industry from other service providers:
Inflexibility:
The tourism industry is highly inflexible in terms of capacity. The
number of beds in a hotel or seats on an airplane is fixed so it is
not possible to meet sudden upsurges in demand. Similarly,
restaurant tables, hotel beds and airplane seats remain empty and
unused in periods of low demand. The seasonal nature of tourism
activity exacerbates this problem.
Perishability:
Tourism services are highly perishable. An unused hotel bed or an
empty airplane seat represents an immediate loss of that service
as a means of earning profit. This has an impact on overall industry
profitability.
Fixed location:

Tourism destinations are fixed locations so effort must be

concentrated in communicating the facility to the potential
consumer. A consumer can conveniently watch a Hollywood movie
at the local cinema but has to be persuaded to travel to India to
see the Taj Mahal.
Relatively Large Financial Investment:
Every modern tourist establishment and facility requires large
investment, frequently over a long time scale. This means that the
level of risk and the rate of return are critically important to
tourism management.
INDUSTRY AND WORKINGS

Tourism is an industry that operates on a massively broad scale: it

embraces activities ranging from the smallest sea-side hotel; to airlines, multi-national hotel chains and major international tour
operators. Originally, non-traditional industries such as tourism
emerged as a solution to strike a balance between ecology and
industry. The tourism industry is now one of the largest sectors
earning foreign exchange for the exchequer. In the face of such
benefits, many countries have started assigning due weightage to
the tourism industry in their national development agenda.

STATISTICS , SURVEYS AND STUDIES.

Periodical surveys are also undertaken to assess the profile of

international and domestic tourists, expenditure patterns,
tourist preferences, satisfaction levels, etc.Based on the
requirement of the Ministry, this Division also undertakes
tourism surveys, studies for preparation of master
7

plans/perspective plans/Detailed Project Reports (DPRs) for

development of tourism in the country, economic and
statistical research studies like Taxes levied on Tourism Sector
vis-a-vis other services sector like export, feasibility studies,
etc.
Foreign Tourist Arrivals (FTAs) - FTAs in India during 2013
were 6.97
million (Provisional) with a growth of 5.9%, as compared to the
FTAs of 6.58 million during 2012 registering a growth of 4.3%
over 2011.
Foreign Exchange Earnings (FEE) from Tourism Tourism is an important sector of Indian economy and
contributes substantially in the countrys Foreign
Exchange Earnings.
The FEE from tourism in rupee terms during 2013 was
R1,07,671 crore (Provisional) with a growth of 14.0%, as
compared to the FEE Of R94,487 crore during 2012
registering a growth of 21.8% over 2011.
The FEE from tourism in terms of US dollars during 2013
was US$ 18.445 billion (Provisional) with a growth of 4.0%,
as compared to FEE of US$ 17.737 billion during 2012
registering a growth of 7.1% over 2011.
Domestic Tourism - The estimates of domestic tourism are
compiled on the basis of data furnished by State/UT
Governments and other information available with the Ministry
of Tourism. The number of domestic tourist visits during the
year 2013 are 1145 million (Provisional), showing a growth of
9.59% over 2012.

 Surveys & Studies - The Surveys & Studies commissioned by

the Ministry of Tourism are useful in getting inputs for
formulation of policies and programmes for the development of
tourism in the country. The Ministry also provides central
financial assistance to State Governments/UT Administrations
for the preparation of Master Plans/Detailed Project Reports
(DPRs)/Feasibility Studies and conducting statistical
surveys/studies.
It is important to know the contribution of tourism in the total
economy and the total jobs in the country. National Accounts
measure the growth and contribution of various sectors like
manufacturing, agriculture, services such as banking,
transport, insurance, etc., while computing the GDP of the
country. However, the System of National Accounts is not able
to measure the growth and contribution of tourism in GDP. This
is because tourism is not an industry in the way industry is
defined in the System of National Accounts.

Instead, tourism is a demand based concept defined not by its

output but by its use. Industries defined in National Accounts,
such as air transport, hotels & restaurants, etc. produce the
same output irrespective of whether it is consumed by tourist
or non-tourist. While the total output of these industries is
captured by the National Accounts, it is only the consumption
by tourists that defines the tourism economy, which is not
readily available in the National Accounts. To assess the
specific contribution of tourism, the need for a Tourism Satellite
Account (TSA) thus arises
The 1st Tourism Satellite Account for India (TSAI) for the
reference year 2002-03 was prepared in the year 2006. The
2nd TSAI was prepared in 2012 for the reference year 2009-10.
As per the 2nd TSAI-2009-10 and subsequent estimation for
9

the next two years namely 2010-11 and 2011-12, the

contribution of tourism to total Gross Domestic Product (GDP)
and employment of the country were as given below:
Year

Contribution of
Contribution of
Tourism in GDP of Tourism in
the country (%)
Employment Of the
Country (%)

Direc Indir
t
ect
2009 3.68 3.09
-10
2010 3.63 3.05
-11
2011 3.66 3.08
-12

Total Direc Indire

t
ct
6.77 4.37 5.80

Total

6.68

4.63

6.15

10.78

6.74

4.94

6.55

11.49

10.17

A S.L.E.P.T. Analysis Of The Tourism Industry In India:

Social:
Tourism was always looked upon as something that led to the
destruction of the social fabric of a place. The more the amount of
outside people coming into a place, the more the perceived risk of
that place losing its identity. A good example is Goa. From the late
60's to the early 80's when the Hippy culture was at its height, Goa
was a haven for such hippies. Here they came in thousands and
changed the whole culture of the state. This had a ripple effect on
the country. People became cautious, especially of the international
tourists. Whenever a certain place became famous, the example of
Goa was cited to discourage the inflow of international tourists.
However some places such as Kerala and Rajasthan have been
10

able to strike a balance between their own culture and the

demands of the international tourists and have profited
handsomely in the bargain. People are now adopting themselves to
the fact that tourism pays and it can be a major source of income
for them.

Legal:
The laws that govern the industry are not the same in all the parts
of the country. Many of the laws that are in effect are old and
archaic, and not geared to meet the challenges of the 21st century.
With respect to taxation, the World Travel and Tourism Council has
observed that
Tax paid by tourists in India is the highest in the world. Indian
hotels charge about 40% tax compared to other Asian countries
where it varies between 3% and 6%".
Such high taxation renders the tourism sector as a whole
uncompetitive. Further, there is considerable disparity between
state level taxes, especially on food and beverages. In fact, the
sales tax on imported beverages varies widely, e.g. 63% in
Karnataka to 28.75% in West Bengal.

With respect to Foreign Investment in any tourism related venture,

clearance must be obtained from the Central government (RBI or
Foreign Investment Promotion Board). 51% foreign equity is
automatically approved subject to meeting certain prescribed
11

criteria, including having a capital base proposal below US $143

million (Rs. 6 billion). In the case of NRIs, 100% foreign equity is
automatically approved. Foreign equity holding above 51 percent
are possible, but are subject to FIPB approval. It is to be noted that
the Ministry of Industry provides final clearance of FIPB approvals.
The National Policy on Tourism lays emphasis on sustainable
development of tourism. In accordance, the Government has
brought out a comprehensive Eco Tourism Policy and
Guidelines. There are several Acts and laws, which ensure
sustainable tourism. These are the Wild Life Protection Act
1972, the Environment (Protection) Act 1986, and
Prevention of Cruelty to Animals Act 1986. These do not set
aside any specific area for tourism, but such areas have to be
identified by the State Governments and obtain the required
approvals/relaxations.
Eco-tourism policies and Guidelines have been formulated by the
Government in consultation with the industry and are being
implemented on a voluntary basis.
Economic:
The tourism industry not unlike the other industries grows with the
increase in the spending of the people. The more the people spend
the more the industry grows. The spending power of the people
has been increasing in the country and all over the world. Since we
are concentrating on the international tourists, the large increase
in the spending power in most developed countries has left a large
amount of idle cash in their hands. This has led to a tourism boom
the world over and India has been no exception. There have been
more people coming into the country with more cash than ever
12

before. This has lead to an increase in the demand for better

hotels. People who previously used to come to the country on a
shoestring budget and hunt around for the cheapest
accommodation can now afford to go in for luxury hotels. This has
led to an increase in the number of hotels in the country. However,
an increase in spending does not only limit itself to
accommodation. The increase in the spending is also evident in the
increase in the number of people traveling by air. Even the number
domestic tourists traveling by air has dramatically gone up.

Political:
The political factors are the main driving force of the industry. The
Indian tourism industry is built on the backbone of Government
support and the industry cannot sustain itself without it. The
various archaeological sites and the places of historical
importance, the roads and the railways are all in the hands of the
Government. All the support services like the hotel industry, the
airlines industry and the tourist operators to name some are
heavily dependent on the support and the cooperation of the
Government.
The major reason as to why tourists visit India is for the vast and
rich heritage that our country has. That is under the control of the
Government, through the Archaeological Survey of India. Any
policy change that comes into force can have dramatic effect on
the way the industry players perform. For example, the
Government charges high rates of taxes on the luxury and the star
13

category hotels and this has always been a cause of disagreement

between the hotel associations and the Government. There are
many areas where the growth of tourism has not been rapid or has
seen dramatic fall because the political environment has not been
conducive. Examples are the North East for the former and Kashmir
for the latter. The neglect of the Government in developing the
North-East has led to a situation where there is practically no
tourism in the seven states.
Similarly, the political turmoil in the state of Kashmir and now in
Gujarat has caused a virtual decimation of the flourishing tourism
industry. However, there has been a change in many of the policies
of the Government with regard to the tourism industry. The hotel
industry has been getting many incentives and many State
Governments are encouraging the growth of major hotels in their
states. After years of tight control over airport infrastructure,
Government has finally taken the decision to privatize the airports.

Technological:
Although technology does not seem to be a major influence at first
glance, it plays a major part in the promotion of a place. Better
communication facilities are one of the first prerequisites for
growth in the inflow of tourists. This has been made possible with
technology. Improved technology in the field of communication at
cheaper costs has resulted in many remote and inaccessible areas
of the country getting connected to the rest of the world. This
connectivity has made these places visible to the world. Better
communication means access to media. And that is very important
14

if any place wants to be on the world tourist map.

Similarly better transportation facilities have lead to a dramatic
increase in the number of tourists visiting any particular place. The
presence of an airport and the availability of frequent flights are a
great convenience to any traveler.

S.W.O.T . Analysis :

STRENGTHS
India's geographical location, a culmination of deserts, forests,
mountains, and beaches.
Diversity of culture i.e. a blend of various civilizations and their
traditions.
A wealth of archeological sites and historical monuments.
Manpower costs in the Indian hotel industry are one of the
lowest in the world. This provides better margins for the
industry.
A very wide variety of hotels is present in the country that can
fulfill the demand of the tourists. There are international
players in the market such as Taj and Oberoi. Thus, the needs
15

of the international tourists and travelers are seen to while

they are on a visit to India.

WEAKNESSES
Lack of adequate infrastructure. The airlines in India, for
example, are inefficient and do not provide basic facilities at
airports. The road condition in India is very bad.
A xenophobic attitude among certain sections of people.
No proper marketing of India's tourism abroad. Foreigners still
think of India as a land of snake charmers. There are many
places where the image of India is one of poverty,
superstition, and diseases. The case of Plague in Surat in 1994
led to a decrease of 36% in arrival of foreign tourists in India.
OPPORTUNITIES
More proactive role from the government of India in terms of
framing policies.
Allowing entry of more multinational companies into the
country giving us a global perspective.
Growth of domestic tourism. The advantage here is that
domestic tourism and international tourism can be segregated
easily owing to the difference in the period of holidays.

16

THREATS
Economic conditions and political turmoil in other countries
affects tourism.
Political turbulence within India in Kashmir and Gujarat has
also reduced tourist traffic.
Aggressive strategies adopted by other countries like
Australia, Singapore in promoting tourism.

Conclusion:

It is true that there are problems galore when it comes to developing the Tourism industry in a state like West Bengal.
What is heartening though is that there seems to be an awareness in the minds of the people as well as of the
government of West Bengal that everyone has to unite together, whether he or she is a sage or an ordinary person.
With the peoples power and the power of grassroot institutions, the deteriorating tourism standards can be arrested
and improved upon. Apart from the government, NGOs and International organizations also have to share the
responsibility and help and guide the local citizenry in developing a sound and sustainable tourism platform for West
Bengal.
One of the key areas in terms of tourism development in West Bengal is creation of a more appropriate form of
tourism to replace Mass Tourism. Appropriate Tourism is a kind of tourism that is more favorable and beneficial to
the local community and the challenge ahead for West Bengal s tourism industry is to implement and establish
Appropriate Tourism at the ground level.
The future relationship between tourism and environment is going to be the key issue for
West Bengals tourism industry as it will be for the rest of India and the world. Being sensitive
towards environment in our pursuit of pleasure in the hills and dales, beaches, grassland and
fragile areas would be the wise thing to do.
Some Players in Tourism Industry

17

Some of these players mentioned in the above graph can be

explained as follows:
Govt. of India (GOI): The Govt. is the most important player
since the land is owned by the Govt. and they also have a lot of
resources at their disposal in comparison to pvt. players. In the
following part we have considered the case of Rajasthan Govt.
which has marketed well and the second case of Sikkim Govt.
which in spite of having a lot to gain by tourism has a very lack
adaisical attitude.
Rajasthan-The Land of the Kings
Rajasthan, the Land of the Kings, is India at its exotic and colourful
best. It is the home of the Rajputs , a group of warrior clans who
have controlled this part of India for 1000 years according to a
code of chivalry and honour akin to that followed by medieval
Europe's knights. Although the fortunes of its former rulers may be
in tatters, the culture of Rajasthan, with its battle-scarred forts,
amazing palaces, riotous colours and sense of gallantry ,ais
astillaveryamuchaalive.
The harsh Rajasthani landscape and tribal customs have
fashioned a people and culture which are visibly different from
those found in the rest of India - from the huge, pastel-coloured
turbans and soup-strainer moustaches sported by the men to the
bright mirrored skirts and chunky silver jewellery of the women.
They have also endowed the state with a magical air of romance,
speckled with desert forts, lush oases, and exotic cities that rise
out of the landscape like shimmering backdrops to Tales of the
Arabian Nights. No-one visits Rajasthan without taking home
superb memories, a parcel of
18

Folk art and a lot of sandainatheaeye.Though these resources are

there, so what? They are also present in other states like
MadhyaaPradesh.aThenawhataisadifferentaforaRajasthan?
Before deciding what to offer to the international tourist, a state
should first find out that what is it that this tourist wants?
Rajasthan seems to have found an answer to it and thus
hasabecomeaaafavouredadestinationsaofatourists.
What Rajasthan offers is not a mere site-seeing tour like any
other historically significant place, but treats the tourists to an
experience of times bygone. It may be a ride aboard 'Palace on
Wheels' or a stay in any of the Heritage hotels strewn across the
state, for the right price Rajasthan makes you royalty for your stay
there and this is what attracts the people. This has not been any
easy task to accomplish. The combined efforts of the public and
the state government has made it possible for desert state to
triumphantly march in the country's otherwise funereal tourism
scenario. Some of the noteworthy state government actions are
wholehearted endorsement of private investment in the hotel
industry leading to the number of hotel rooms growing at a fair
rate. The loans and subsidies are being given on liberal terms to
owners of forts and palaces to convert their properties into hotels.
The other side also embraced this idea fully as it gave the royalty a
chance to once again play kings and queens. There are 17 heritage
hotels recognised by the department of tourism, 30 other
operating heritage properties and 12 are in the planning stages.
And as many as 56 properties have expressed interest in offering
themselves for the heritage status.

19

A few of these turnaround stories are:

LuniaHavelia-Aadreamainaredasandstone

Luni is a small village some 30 km from Jodhpur and the haveli is at

least two centuries old. No one lived there after 1860, save bats
and sundry reptiles. In 1992-93 it all changed, extensive
renovations were carried out and today the Luni Haveli is one of
Rajasthan's more impressive heritage hotels. The property extends
over two and a half acres, has 19 rooms and will soon offer its
guests a swimming pool. It has achieved a 50%
averageaoccupancy.aIt is run by 27 years old Vikram Singh and
Yamini his wife who till date thank a certain hotel chain who
approached them to develop the property. However, the deal could
not be made but the idea was implanted and today Luni Haveli is
beginning to find itself on tourist itineraries.
DeraaDundlodaKila

Dera Dundlod Kila, a 250-year-old fort in the heart of Shekhawati.

Its reins are in the hands of Thakur Raghubir Singh and his dynamic
son, Kunwar Raghavendra Singh, better known as Bonnie. The
father-and-son duo decided to convert the property into a hotel
with a dual purpose in mind: it would, on the one hand, save the
sprawling fortress from turning into a ruin and, on the other,
generate some badly needed income for the family. Today, with 27
rooms and an annual turnover of Rs 10-12 lakh, the Singhs are
reaping the rewards of their sagacity.
20

Narainaniwasapalace-Aaarestahouseaforacamelacaravans!

Today the palace in the golden city of Jaisalmer has a yearly

turnover of a neat Rs 70 Lakhs. Also the local crafts are finding a
new lease of life with the increase in their demand. The various
local arts are also reviving due to the same. Thus we see that if
managed properly tourism is beneficial to all.
Sikkim- AnaIgnoreda Land

Sikkim the tiny Himalayan state and one of the smallest of the
Indian union has the potential of becoming a large tourist
attraction. Nestled in the magnificent Himalayas this state is
nature at its most beautiful. In addition, the untouched air of this
state takes one back to the time when man and nature coexisted
harmoniously.The pure air and clean water does wonders for one's
senses. Everywhere one marvels at sites of a spring stream
orchard bloom. Despite being endowed with
virgin resources, which could turn it into a major international
destination for special kinds of high-value tourism, the state
remains in the backwoods of such activities. The tourism in the
state is virtually absent, the reasons sited by the office bearers are
-the security-oriented approach of the centre, which virtually
throttled the development of the state, is tourism. To visit this state
one has to go through number of clearances and if one is a foreign
national then this number increases exponentially. But this seems
to be a silly excuse by the government to hide its inefficiencies.
The infrastructure in the state is so poor that the locals would not
rely on them, what of the international tourists. Basic facilities like
roads are absent what to talk of the rest. One could really question
government's decision about security here when it is itself
encouraging tourism in border states like Rajasthan. It has cities
21

like Jaisalmer and Jodhpur open to tourism which share border with
Pakistan. Whatever the reasons this jewel of the Himalayas lays
wasted when India is crying out for international tourists.
TOUR OPERATOR

Apart from the Govt. players there are pvt, tour operators. We have
taken the case of an online tour operator, Indianvisit.com, its
profile is as follows:
Indianvisit.com is a part of Indian Holiday Pvt. Ltd. (earlier
known as TRAFFORD TOURS & TRAVELS ), a proactive travel
organization in Indian tourism industry for the last 10 years. They
are a professionally managed closely held agency and
management control is vested with the first generation promoter
entrepreneurs. Transaction level operations are executed by a team
of professionally qualified professionals, who are well versed with
the complexities of Travel & Tourism Trade. Their guest service
team has a cumulative experience of 100 man-years in tourism
industry. The team is well aware and equipped to cater to
requirements of various market segments and understands the
nuances of tourism in India.

Services

Tours
They have been operating a variety of tours for their Groups and
Individual tourists and have been able to mastermind their tours
with great deal of efficiency. The company specializes in inbound
22

tours and offers a host of tourism related services to inbound

tourists in the India and neighboring countries like Nepal, Bhutan,
Tibet, and Srilanka. Various tours they offer are as below. Tailormade packages, cultural tours, adventure tours, religious tours,
yoga & meditation tours, Rejuvenation & Ayurveda tours, safaris,
special interest tours, conferences, incentives and much more in
the Indian Subcontinent. Apart from above other various travel
related services they provide are as below:
Hotel Booking:
Individual or group booking in any hotel of any category and in any
part of Indian subcontinent can be provided instantly. Owing to
their very good connections with the hotels in almost every part of
the country, they are always in a position to offer very lucrative
discounted rates to their clients. Enter their hotel query form and
just let them know the name of city and category of hotel and wait
for some time. Their professionals will get back to you in no time
with
a
number
of
suitable
options.
Air Booking:
Their exceptionally good relations with the Domestic and
International Airlines enable them to come up with very good
discounts for their clients. Their online reservation system Abacus helps us in confirming the bookings instantly even in the
veryabusyasectors.
Itinerary Planning and Tailor Made Holiday:
IndianVisit have long been helping their guests with necessary
arrangements in many exciting programs. Just tell them the time of
arrival & departure, the total duration of travel and your

23

approximate budget. Rest all leaveatoathem.

Transport:
They have a large fleet of cars / coaches at their disposal, and
having the fleet itself is not enough, they need to see that they use
best transport for their clients, and provide them a good value for
their money, hence they have maintained a separate department
taking care of all their transport requirements.
Other Services:
School and college group tours:
College and school group tours are probably the most difficult one
to handle as the young boys and girls expect and demand far more
from their travelling experience than other travellers and they have
and an insatiable appetite for enjoyment. Even a small problem in
the tour can dampen their enthusiasm or can drive them crazy so
everything has to be absolutely perfect for such tours. their
meticulously planned and well executed tours have won a number
of young friends for them.
City sightseeing and tour excursions:
They can arrange city sightseeing tours for individual / group
traveller in any of the touristic destination. The city tour can be
provided in an a/c and non a/c car or coach. A four hour half day
trip would not give the tourist short exposure, to the city and a full
day city tour is there if they have more than 04 hours to spare.
Beat area of all the cities are covered with a variety of excursions,
all organized in such a way that they start in the morning and after

24

an experience to remember, they would come back to the place

where they started from, in the evening.
Limousine/luxury car/ coach services:
They always have a large fleet of cars and coaches at their disposal
and can provide the same at any part of the subcontinent for
sightseeing tours, for airport transfers or for any such purpose. The
operations of their Transport department are incredibly swift and
silky smooth - thanks to the large and luxurious fleet of airconditioned, well trained and dressed chauffeur driven cars and
coaches at its disposal. Their quality control concept allows us to
not to use more than 03 years old cars / coaches on longer drives.
Their chauffeurs are well aware of the basic ethics of the travel
trade and hospitality industry thus a personalized service to all the
valued guests is guaranteed, even if they are traveling only along
with the chauffeur.
How To Market Tourism (The 7 Ps)

The Product Mix:

Components of a tourism product

25

The tourism product is essentially an intangible thing. Also,

because tourism is a multi-segment industry, the task of
formulating a product mix becomes more difficult & challenging.
Selling a holiday is selling dreams. The way to win the customers
heart is through the peripheral services provided along with the
core product. Thus a tourism product is quite a complex one,
including the destination, airline seat, hotel room, occasional
tangible products such as souvenirs, a free bag or bottle of whisky,
etc.
Innovation in the tourism industry helps to raise the sensitivity in
this regard. There is nothing fixed or fundamental about the
tourism product. The content factor is within the jurisdiction of the
government that undertakes the maintenance, development and
conservation of tourist attractions such as parks, museums,
beaches, historical treasures, etc. Unless these factors are
developed in the right fashion, the marketing professionals would
never be successful in making the marketing resources productive.
Thus the direct or indirect patronage of the government is essential
to get a positive response. The government and private tourist
organizations work together to undertake activities such as
developing infrastructural facilities such as transportation, water,
banking, Medicare facilities, etc., and also developing and maintain
hotels, cottages, havelis, lodges, etc.
The Price Mix

In pricing decisions, the product or the service mix of the tourist

organization is important. They have to set prices in line with the
quality of services to be made available to the customers. Pricing
decisions are influenced by internal and external factors. The
26

tourism professionals are supposed to watch the emerging trends

in both the markets. They are required to think in favour of
discounting price. These may include discounts for cash payments,
seasonal discounts, trade discounts etc. But while offering the
discounts, it is not to be forgotten that it may also create image
problem since some of the value sensitive tourists may doubt the
quality.
The Promotion Mix

Creation of awareness has a far reaching impact. The tourist

organizations bear the responsibility of informing, persuading and
sensing the potential tourists in a right fashion. The marketers
need to use the various components of promotion optimally so that
they succeed in increasing the number of habitual users. Promotion
helps in maximizing the duration of stay, frequency of visit by
offering new tourist products in the same country to areas which
hitherto have remained untapped or partially tapped. The various
dimensions of tourism promotion are as follows:
Advertising: Advertisement helps in furnishing important
information to the actual and potential tourists. Its coverage is
wide. Advertising is aimed at the public to create awareness of the
travel offers available on a resort and its attractions to influence
their business decisions. Intangibility can be compensated with the
help of visual exposure of scenes and events. We can project hotel
bedrooms, well arranged restaurants and cafeterias, swimming
pools etc.
Publicity: It focuses attention on strengthening the public
relations measures by developing a rapport with media people and
getting their personalized support in publicizing the business. It
27

helps in projecting the positive image of tourists organizations

since the prospects trust on the news items publicized by the
media people. Eg. Kumarakom in Kerala after Prime Minister A B
Vajpayees visit. The publicity programme include regular publicity
stories and photographs to the newspapers, travel editors, contact
with magazines on stories etc. There are different groups in
publicity, such as advertising publicity, projected publicity,
structural publicity and personal publicity.
Sales promotions: Sales promotion measures are the short term
activities seeking to boost sales at peak demand periods to ensure
that the firms obtain its market share and are used to help launch a
new product or support an ailing or modified one. The tool of sales
promotions is designed to appeal particularly to those customers
who are price-sensitive. There are a number of techniques to
promote sale and the tourist professional need to use them in the
face of their requirements vis--vis the emerging trends in the
business. Eg. In the tourism industry, a travel company offers giveaways to their clients, such as flight bags, wallets for tickets and
forex and covers of passport. The hotels offer a number of facilities
like shoe shine clothes, first aid, sewing kits, shower caps and
shampoo. Further, the VIP clients also get fruits and flowers in their
rooms.
Thomas Cook offered 3 tier sales promotion based on price and one
more novel technique as detailed below:
Cook agreed to match the price of any holiday they sold which
was known as price promise.

28

 Money back guarantee to the clients who purchase the product

or any tour operator known as trading charter.
Matching of customers need with a particular holiday known as
formal guarantee.
A business travel challenge in which the details of expenditure
on staff business travel booked through other agents over a 3
months period were submitted by companies to Cook,
specially to calculate expected savings, provided the bookings
are made through them.
Word-of-mouth Promotion: Most communication about tourism
takes place by word-of-mouth information which in a true sense is
word-of-recommendation. In the tourism industry it is found that
the word-of-mouth promoters play the role of a hidden sales force,
who instrumentalize the process of selling. The high magnitude of
effectiveness of this tool of promotion is due to high credibility of
the channel, specially in the eyes of the potential tourists. The
sensitivity of this tool makes it clear that tourist organizations need
to concentrate on the quality of services they promise and offer.
The marketers or the tourist organizations need to keep their eyes
open, identify the vocal persons or the opinion leaders and take a
special care of them so that they keep on moving the process of
stimulating and creating demand.
Personal Selling: Personal Selling is based on the personal skill of
an individual. The oral representation in conversation bears the
efficacy of transforming the motivation into persuasion. The travel
and hotel business depend considerably on the personal selling.
The development of travel and tourism has been possible due to
29

well educated and trained sales personnel. The development of

tourism business has been influenced by the services rendered by
the travel agents and travel guides since they work as information
carriers. Personal selling is the personal presentation of a tangible
product or intangible services or ideas to the personal customers. It
is important to mention that in the tourism industry, the personnel
who attend tourists form an essential ingredient of the product,
such as sales personnel are found responsible for dealing with
customers behind the counter, the resort representatives cater to
the need of tourists when they reach the destination etc. all of
them play a vital role in ensuring that the tourism products satisfy
the tourists. The phrase- the customer is always right applies
specifically to the tourism industry. No reduction in price would
compensate for impolite and indecent travel guide, a solvent
waiter and a surly or a haughty coach driver. These facts are
testimony to the proposition that the travel business is linked with
the performance and behavior of sales personnel or travel staff.
Telemarketing: it is a method of selling in which a professionally
sound telemarketer expands the business. The quality of
technology and the communicative ability of the telemarketers
determine the magnitude of success of this component. In tourism,
the travel agents, offices of airways, receptionist, secretaries cant
work efficiently if the telephonic services are not up to the mark.
This makes a strong advocacy in favour of recruiting a person
considered to be professionally sound, personally-committed sales
personnel having an in-built creativity, innovation and imagination.

30

Place

Place or distribution management is concerned with two things

availability and accessibility.
Researchers in tourism must determine how and where potential
customers prefer to buy tourism products and services.
Most tour operators sell their services through travel agents,
however some deal directly with the consumers and eliminate
middlemen. Other companies may also utilize more than one
method of distribution. Airlines, for example, sell tickets through
travel agents, and sell seats on flights to tour operators, and also
offer travelers to book seats themselves through their own booking
offices.
There exist, however, a number of intermediaries in the tourism
marketing channel. It depends largely on the channel type. The
intangibility feature in the service sector prevents intermediaries
from taking possession or ownership of goods. Tourism, however,
proves an exception where cuisine and souvenirs are goods and
ownership is possible for the intermediaries.
Transport also plays a major role in the tourism industry. It makes
the destinations accessible to people from around the world. Also,
in the case of tangible products in tourism such as souvenirs and
cuisine, transportation becomes a major logistical component.
People

We cant deny the fact that sophisticated technologies have been

successful in accelerating the pace of development. We also agree
with this view that new generation of information technologies
31

have simplified the task of decision makers. At the same time we

also have to accept the fact that the sophisticated technologies
cant deliver goods to the development process if the employees
operating and maintaining these technologies are not of world
class. Technologies need due support of human resources who
invent, innovate and develop technologies.
Like other industries, the tourism industry depends substantially on
management of human resources. The tourism industry is an
amalgam of the services of a lot of people and hence this industry
cannot work efficiently if the travel agents, tour operators and
travel guides lack world class professional excellence. Of course
the offices of travel agents depends on the new technology but
after all employees and the other staff contribute significantly to
the process. The travel guides need professional excellence since
the projection of a positive image regarding a destination in
particular requires their due cooperation, failing which even the
world class services offered by the travel agents are found
meaningless. The tour operators also need to manage human
resources efficiently.
In the management of people, the related organizations are
required to think in favour of developing an ongoing training
program so that we find a close relation between the development
of technologies and the quality of personnel who are supposed to
operate and maintain the same. They need a lot of credentials to
fulfill the expectations of the customers. The organization has to
make the environmental conditions conducive and focus has to be
laid on the incentives to the employees for energizing the process
of performance orientation. Employee orientation requires due
32

weight age to efficiency generation, value-orientation and

perfection.
In the tourism industry the travel agents and the travel guides are
the two most important people who speak a lot about the industry.
Hence it is imperative that they have to be at their best at all
times. Travel guides especially, are expected to have a lot of
patience, good sense of humour, tact to transform the occasional
tourists into habitual ones, thorough knowledge of the places,
linguistic skills etc.
The Government plays an important role in providing the right kind
of people for this industry. As such there are a lot of Govt. and Pvt.
Institutes which offer training for the same. At present, the Ministry
of Tourism is running 21 Institutes of Hotel Management (IHMs) and
Catering Technology and 14 Food craft Institutes (FCIs). The IHMs
provide 3-year Diploma in Hotel Management, 1- 1/2 year PostGraduate Diploma in Accommodation Operations, 1-1/2 year PostGraduate Diploma in Dietetics and Hospital Food Science, 1-1/2
year Certificate course in Food Production, 6- month Certificate
course in Food & Beverage Services, 6- month Certificate course in
Hotel and Catering Management, 1-1/2-year Post Diploma in Hotel
Administration and P.G. Diploma in Fast Food Operations. The FCIs
are engaged in providing the craft Diploma in Cookery, Food &
Beverage Service/ Restaurant & Counter service, Reception & Book
Keeping, House Keeping and Bakery & Confectionery. The training
courses run by the Institutes are designed to suit the needs of the
various target groups.
Apart from this The Indian Institute of Travel Management (IITM),
established in 1983, by the Ministry of Tourism, Government of
33

India, is filling the vacuum for an institute that develops manpower

exclusively for the tourism industry. The institute has successfully
undertaken major initiatives for developing human resources
required for the tourism industry. The institute took its shape after
the National Committee of Tourism, which comprised members of
Parliament, recommended that an institute catering to the
requirements of tourism industry be set up immediately. The
purpose of the institute is to provide academic opportunities to
graduates and undergraduates directly and in collaboration with
the leading institutes and universities, for successful careers in
Holiday and Leisure Management, tour operation, transportation,
accommodation and interpretation services. The institute is
working with the objective of total professionalism of human
resources engaged in business of tourism through diplomas after
graduation, specially designed practical training and field research,
foreign language training programs, executive development
programs for retired defense service personnel, workshops,
seminars and conference, tourism orientation talks at school and
college levels and tourism promotion competition among young
generation. A student who graduates from IITM is absorbed in the
middle level executive positions in travel agencies, with tour
operators, transport companies, hotels, domestic and international
airlines, cargo services, besides getting into government jobs. The
institute is also offering courses in computer applications and
software studies, basic course of air travel fares and ticketing,
basic course on airlines, travel agencies and tour operation
management, basic course in air and sea cargo service
management, basic course on computer application in travel and
tourism industry, diploma in tourism and travel management and
foreign language. Apart from IITM there are other institutes like The
34

Institute of Hotel, Cargo and Tourism Management (IHCTM),

another one run by World Tourism Organization and various other
private institutes catering to the needs of the industry.
Development of infrastructure

Scheme for Products/Infrastructure Development of

Destinations and Circuits
Under the centrally sponsored scheme of
Product/Infrastructure Development of Destinations and
Circuits, the Ministry of Tourism extends Central Financial
Assistance to the State Governments/ Union Territory
Administrations for tourism projects identified in
consultation with them for the improvement of existing
tourism products and also for developing new ones. 100%
Central Assistance is given under the scheme for
identified projects for the development of major
destinations/circuits to world standard and also for rural
tourism infrastructure development. Under this scheme,
the Ministry of Tourism provides financial assistance up to
Rs 5 crore for the development of destinations and
circuits. The upper limit of financial assistance has been
increased to Rs25 crore and Rs50 crore respectively for
identified mega destinations and circuits.
The Ministry of Tourism holds Prioritization Meetings with the
States/UTs to identify the tourism projects in their States/UTs
for funding. While prioritizing the projects, adequate emphasis
is given to the projects involving the construction and upkeep
of wayside amenities along Highways/Roads leading to tourist
destinations, cleanliness at the tourism sites, projects in
backward areas, etc.
To ensure the contribution of tourism in the development of
remote and backward areas in the country, it has been
35

decided to earmark 2.5% of total plan outlays of the Ministry

of Tourism from 2011-12 for tourism development in tribal
areas and a separate Budget Head under Tribal Sub Plan (TSP)
has been created. During the year 2014-15 an amount of R
32.05 crore has been earmarked under Budget Head for Tribal
Sub Plan (TSP). As per standard procedure 10% of total Plan
Outlay of the Ministry of Tourism is earmarked for development
of tourism for North Eastern States. During 2014-15, an
amount of Rs 129 crore was earmarked for North Eastern
States.
Rural Tourism
The scheme of Rural Tourism was started by the Ministry
of Tourism in 2002-03 with the objective of showcasing
rural life, art, culture and heritage at rural locations and in
villages. The villages which had core competence in art &
craft, handloom, and textiles as also an asset base in the
natural environment were selected. The scheme also aims
to benefit the local community economically and socially
as well as enable interaction between tourists and local
population for a mutually enriching experience.
The promotion of village tourism is also aimed at
generation of revenue for the rural communities through
tourists visitations. Under this scheme, funds up to Rs50
lakh for infrastructure (hardware, or HW)development and
up to R20 lakh for capacity building (software, or SW)
activities, are provided to State Government for each
identified rural tourism site. A total of 203 rural tourism
projects in 29 States/Union Territories sanctioned up to
31st December, 2013.
Development of Mega Destinations and Circuits
Realizing that increased inflow of tourists requires better
infrastructure, the Ministry of Tourism has taken the
initiative for integrated development of mega
destinations/circuits/projects for suitably addressing the
36

existing infrastructure gaps, ensuring convergence of

resources and programmes of other Ministries, particularly
at the key destinations/circuits. The mega
destinations/circuits are considered on the basis of their
national importance, footfalls and future potential in
consultation with the State Governments. Under this new
initiative, the Ministry of Tourism provides financial
assistance up to Rs 25 crore for development of a mega
destination and R50 crore for a mega circuit. Apart from
this financial assistance, the Ministry is also working with
other Central Govt. Ministries and concerned State
Governments to achieve convergence and synergy with
other govt. programmes so that the impact of investment
on these destinations is maximized.
The process of identifying the mega projects is a
continuous process and the Ministry of Tourism has
identified 71 such destinations/ circuits of national
importance (as on 31.12.2013). The projects sanctioned
are for development of World Heritage Sites, other
important Heritage Sites, historically and culturally
important Sites, Religious Sites and for development of
Cruise Tourism. While developing these mega
destinations, emphasis is laid on the improvement of
environments landscaping, illumination, improvement in
solid waste management and sewerage, wayside
amenities, refurbishment of monuments, construction of
tourist reception centres, last mile connectivity, signages,
etc.
Inter-Ministerial Co-ordination
An Inter-Ministerial Co-ordination Committee on Tourism
Sector (IMCCTS) has been constituted under the
Chairmanship of the Principal Secretary to the Prime
37

Minister. The terms of reference of the Committee are to

facilitate resolution of Inter-Ministerial issues involved in
the development of tourism in the country as well as
issues raised by industry associations in the tourism
sector. The Members of the Committee are: Member
Secretary, Planning Commission, Chairman, Railway
Board, Secretaries from the Ministries of Home, Defence,
External Affairs, Road Transport & Highways, Civil Aviation,
Rural Development, Environment & Forests, Urban
Development, Labour and Employment, Culture,
Departments of Revenue, Expenditure and School
Education & Literacy. Secretary, Ministry of Tourism is the
Member Convener of the Committee. The last meeting of
the said committee was held on 30th July, 2013. It
discussed various important matters including Tourist Visa
on Arrival (TVOA) facility for additional countries, TVOA
facility to five more airports, collective landing facility at
airports, issue of long term Restricted Area Permits (RAP)
and Protected Area Permits (PAP) in North Eastern States,
inclusion of hotels of two stars and above category in the
Harmonised list of Infrastructure, etc.
International co-operation

Co-operation with International and Multilateral

Organizations
The Ministry of Tourism, engages in consultations and
negotiations with various international and multilateral
organizations such as United Nations World Tourism
Organization (UNWTO), Economic and Social Commission for
Asia and the Pacific (ESCAP), Bay of Bengal Initiative for
Multi-Sectoral Technical and Economic Cooperation
38

(BIMSTEC), Mekong Ganga Co-operation (MGC),

Association of South East Asian Nations (ASEAN), South
Asian Association for Regional Co-operation (SAARC), and
South Asian Sub-Regional Economic Co-operation (SASEC).
India joined the Global Leaders for Tourism Campaign
launched by UNWTO and WTTC on 11th April, 2013. Dr. Taleb
Rifai, Secretary General, UNWTO accompanied by Union
Minister for Tourism handed over an Open Letter to Vice
President Shri M. Hamid Ansari. The letter jointly signed by
Mr. Rifai and Mr. David Scowsill, President and CEO, World
Travel and Tourism Council (WTTC) urges world leaders to
join hands with the leaders from the other countries as well
as with UNWTO and WTTC to position travel and tourism
higher on the global agenda.
The Ministry of Tourism, Government of India hosted the
25th Joint Meeting of UNWTO Commissions for South Asia,
East Asia and the Pacific and UNWTO Conference on
Sustainable Tourism Development in Hyderabad from 12th
to 14th April, 2013. The above events were attended by
delegates from 21 countries, 8 UNWTO affiliate members, 2
regional organizations and man industry organizations.
India participated in the 13th and 14th Meeting of UNWTO
Committee on Statistics and Tourism Satellite Account held
in Madrid, Spain on 1st 2nd July, 2013 and 14th 15th
January, 2014.
India participated in the 95th Session of the UNWTO
Executive Council Meeting held in Belgrade, Serbia from
26th to 29th May, 2013 and 20th Session of the UNWTO
General Assembly, 96th and 97th Session of the UNWTO
Executive Council, 54th meeting of the UNWTO Regional
Commission for South Asia and UNWTO Ministerial Round
Table meeting held in Livingstone, Republic of Zambia and
Victoria falls, Zimbabwe from 24th 29th August, 2013.
During the meeting India was re-elected as the Member of
39

the UNWTO Executive Council for a period of four years and

the Chairman of the UNWTO Commission for South Asia for a
period of two years.
India participated in the World Travel and Tourism Council
(WTTC) Asia Summit held in Seoul, Republic of Korea on 10th
11th September, 2013.
India hosted the 1st Tourism Working Group Meeting of the
BIMSTEC member countries in New Delhi on 23rd
September, 2013. The Meeting was attended by the
representatives from Myanmar, Thailand, Bhutan and Sri
Lanka.
India has partnered with UNWTOs T-20 initiative for
promoting dialogue on global tourism growth among the
Tourism Ministers of different countries of the world.India
participated in the 5th T-20 Tourism Ministers meeting held
in London on 4th November, 2013.
India participated in the 11th ASEAN India Tourism Working
Group Meeting held in Kuching, Sarawak, Malaysia on 18th
January, 2014.

Bilateral/Multi-lateral Tourism Cooperation Agreements

The International Co-operation Division of the Ministry holds
consultations and negotiations with other countries for
signing of Agreements/Memorandum of Understanding
(MoU) for bilateral/ multilateral co-operation in the field of
tourism, organizes Joint Working Group Meetings with other
countries and attends Joint Commission Meetings, in
coordination with the Ministries of Commerce, Culture, Civil
Aviation, External Affairs, Finance, Petroleum, etc. for
development and promotion of tourism. India has signed 50
bilateral/tripartite Agreements/MoUs/ Protocols with other
countries to widen the links of friendship and promote cooperation in tourism sector.
40

 A Joint Working Group on Tourism Cooperation between India

and Ukraine was held in New Delhi on 8th April, 2013 for
enhancing further development of tourism in both the
countries.
The Ministry of Tourism, Government of India and the Japan
Tourism Agency, Ministry of Land, Infrastructure, Transport
and Tourism, Government of Japan signed a Memorandum
for strengthening co-operation in the field of Tourism on
22nd January, 2014 in New Delhi.
External Assistance
The Ministry of Tourism also takes up development of
tourism related infrastructure with external assistance. A
loan agreement for 7331 million Japanese Yen was signed
with Japan Bank of International Cooperation (JBIC) now
known as Japan International Cooperation Agency (JICA),
on 31st March, 2003 to undertake the Ajanta- Ellora
Conservation and Tourism Development Project (Phase II).
The main components of the project are monument
conservation, improvement of Aurangabad Airport,
afforestation , improvement of roads, construction of
tourist complexes, water supply at tourist attractions,
public awareness activities, human resource development
and computerization of tourist information. The work on
all the components of this project is over and the Project
Management Consultants are preparing the Project
Closure Report. The validity of loan expires on 31st July,
2014.
The Ministry of Tourism, Government of India along with
the Departments of Tourism of the Governments of Bihar
and Uttar Pradesh and International Finance Corporation
(World Bank Group) have entered into an agreement to
co-operate in upgrading the quality of services and goods
provided for tourists along the Buddhist Circuit in UP
41

and Bihar in October 2013. Under this agreement, the

signatories envisaged a strategy which aimed at broader
integrated Buddhist Circuit Tourism Development Project,
for both Buddhist pilgrims and those wishing to
experience the essence of Buddhist heritage

Foreign Tourist Arrivals (FTAs) in India, 1997-2014

FTAs from Tourism
in India (in Million)

Year

Percentage (%) change over

the previous year

1997
1998
1999
2000

2.37
2.36
2.48
2.65

3.8
-0.7
5.2
6.7

2001
2002
2003

2.54
2.38
2.73

-4.2
-6.0
14.3

2004
2005

3.46
3.92

26.8
13.3

2006
2007

4.45
5.08

13.5
14.3

2008
2009
2010
2011

5.28
5.17
5.78
6.31

4.0
-2.2
11.8
9.2

2012
2013

6.58
6.97

4.3
5.9

3.54(P)

5.2 @

Jan-June, 2014

Month-wise Foreign Tourist Arrivals (FTAs) in India, 2012-2014

Foreign Tourist Arrivals (FTAs) in India

Month

2012

2013

2014 (P)

Percentage(%) Change

42

January

681002

720321

719965

2013/2012
5.8

2014/2013
0.0

February

681193

688569

737870

1.1

7.2

March

606456

639530

668896

5.5

4.6

April

447581

450580

504211

0.7

11.9

May

374476

417453

420976

11.5

0.8

June

433390

451223

491833

4.1

9.0

July

485808

506427

4.2

August

445632

486338

9.1

September

411562

453561

10.2

October

556488

598095

7.5

November

701185

733923

4.7

December

752972

821581

9.1

6577745
3224098

6967601
3367676

Total
Sub-Total (Jan-June)

3543751
3543751

5.9

4.5 @

5.2 @

P: Provisional ; @: Growth rate over January-June of previous year.

S ource: (i) Bureau of Immigration, Govt. of India, for 2012 & 2013
(ii) Ministry of Tourism, Govt. of India for 2014.

Foreign Exchange Earnings (FEE), in US$ Million, from Tourism

in India, 1997-2014
FEE from Tourism

Percentage (%) change over

in India

the previous year

1997

2889

2.0

1998

2948

2.0

1999

3009

2.1

2000

3460

15.0

2001

3198

-7.6

2002

3103

-3.0

2003

4463

43.8

2004

6170

38.2

2005

7493

21.4

2006

8634

15.2

2007

10729

24.3

2008

11832

10.3

2009

11136

-5.9

Year

43

2010

14193

27.5

2011

16564

16.7

17737

7.1

18445

4.0

2012
2

2013#

Jan-June, 2014 #1

9334

-0.8 @

#1 Advance estimates, @ Growth Rate over Jan-June, 2013

# 2 Ist revised estimates.
Source: (i) Reserve Bank of India, for 1997
to 2010
(ii) Ministry of Tourism, Govt.of
India, for

2011 , 2012 , 2013 & 2014

Month-wise Foreign Exchange Earnings (FEE), in US$ Million,

from Tourism in India, 2012-2014

FEE from Tourism in India

Percentage (%) change

Month
2012

2013#2

2014#1

2013/2012

2014/2013

January

1681

1984

1786

18.0

-10.0

February
March

1729
1559

1906
1755

1805
1662

10.2
12.6

-5.3
-5.3

April
May

1305
1023

1329
1207

1431
1210

1.8
18.0

7.7
0.2

June
July

1158
1512

1227
1442

1440

6.0
-4.6

17.4

August
September

1306
1219

1328
1224

1.7
0.4

October
November

1538
1776

1404
1703

-8.7
-4.1

1931

1936

0.3

17737
8455

18445
9408

December

Total
Sub Total (Jan-June)

4.0
11.3 @

9334

-0.8 @

# 1 Advance estimates and @ Growth rate over Jan-June of previous year.

# 2 Ist Revised estimates.
Source: Ministry of Tourism, Govt. of India

Top 10 Source Countries for Foreign Tourist Arrivals (FTAs) in

India in 2013
S.No

Source Country

FTAs (in Million)

44

Percentage %
Share

1.

USA

1085309

15.58

2.

United Kingdom

809444

11.62

3.

Bangladesh

524923

7.53

4.

Sri Lanka

262345

3.77

5.

Russian Fed.

259120

3.72

6.

Canada

255222

3.66

7.

Germany

252003

3.62

8.

France

248379

3.56

9.

Malaysia

242649

3.48

Japan

220283

3.16

Total of Top 10 Countries

4159677

59.70

Others

2807924

40.30

G.Total

6967601

100.0

10.

Source:- Bureau of Immigration, Govt. of India

Number of Indian Nationals Departures (INDs) from

India, 1997-2013
Year
1997
1998
1999

No. of Indian Nationals

Departures (in Million)
3.73
3.81
4.11

Percentage (%) change over

the previous year
7.6
2.3
8.0

45

2000
2001

4.42
4.56

7.3
3.4

2002
2003

4.94
5.35

8.2
8.3

2004
2005

6.21
7.18

16.1
15.6

2006
2007

8.34
9.78

16.1
17.3

2008
2009

10.87
11.07

11.1
1.8

2010
2011

12.99
13.99

17.4
7.7

2012
2013

14.92
16.63

6.7
11.4

Source:- Bureau of Immigration, Govt. of India

Number of Domestic Tourist Visits (DTVs) to all States/UTs

in India, 1997-2013
Year

No. of Domestic Tourist

Percentage (%) change over
Visits to States/UTs (in Million)
the previous year

1997
1998
1999

159.88
168.20
190.67

14.1
5.2
13.4

2000
2001

220.11
236.47

15.4
7.4

2002
2003

269.60
309.04

14.0
14.6

2004
2005

366.27
392.01

18.5
7.0

46

2006
2007

462.32
526.56

17.9
13.9

2008
2009

563.03
668.80

6.9
18.8

2010
2011

747.70
864.53

11.8
15.6

1045.05
1145.28

20.9
9.6

2012 $
2013 (P)
Source : State/ Union Territory Tourism Departments .
(P)
: Provisional, $-DTV figure of 2012 has been revised

Number of Foreign Tourist Visits (FTVs) to all States/UTs

in India, 1997-2013
Year

No. of Foreign Tourist

Percentage (%) change over
Visits to States/UTs (in Million)
the previous year

1997
1998
1999

5.50
5.54
5.83

9.3
0.7
5.3

2000
2001
2002
2003

5.89
5.44
5.16
6.71

1.1
-7.8
-5.1
30.1

2004
2005

8.36
9.95

24.6
19.0

2006
2007

11.74
13.26

18.0
12.9

2008

14.38

8.5

47

2009
2010
2011

14.37
17.91
19.50

-0.1
24.6
8.9

2012 $
2013 (P)

18.26
19.95

-6.3
9.2

Source: State/ UT Tourism Departments . (P) : Provisional

$: FTV figure for 2012 has been revised.

Share of Top 10 States/UTs of India in Number of Domestic

Tourist Visits in 2013
Rank

State/UT

Domestic Tourist Visit in 2013 (P)

Number
Percentage Share %

1.

Tamil Nadu

244232487

21.3

2.

Uttar Pradesh

226531091

19.8

3.

Andhra Pradesh

152102150

13.3

4.

Karnataka

98010140

8.6

5.

Maharashtra

82700556

7.2

6.

Madhya Pradesh

63110709

5.5

7.

Rajasthan

30298150

2.6

8.

Gujarat

27412517

2.4

9.

West Bengal

25547300

2.2

10.

Chhattisgarh

22801031

2.0

Total of Top 10 States

972746131

84.9

Others

172534312

15.1

1145280443

100.0

Total
Source: State/ UT Tourism Departments.
(P): Provisional.

48

Share of Top 10 States/UTs of India in Number of Foreign

Tourist Visits in 2013
Rank

State/UT

Foreign Tourist Visit in 2013 (P)

Number
Percentage Share %

1.

Maharashtra

4156343

20.8

2.

Tamil Nadu

3990490

20.0

3.

Delhi

2301395

11.5

4.

Uttar Pradesh

2054420

10.3

5.

Rajasthan

1437162

7.2

6.

West Bengal

1245230

6.2

7.

Kerala

858143

4.3

8.

Bihar

765835

3.8

9.

Karnataka

636378

3.2

492322
17937718

2.5
89.9

2013308

10.1

19951026

100.0

10.

Goa

Total of Top 10 States

Others

Total
Source: State/ UT Tourism Departments. (P): Provisional

49

Share of India in International Tourist Arrivals in World

and Asia & the Pacific Region,1997-2013

Year

International
Tourist Arrivals
(in millions)
World

1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

593.0
611.0
633.8
683.3
683.4
703.2
691.0
762.0
803.4
846.0
894.0
917.0
883.0
948.0
995.0
1035.0
1087.0 (P)

Percentage (%)
share and rank of
India in World

FTAs in
India
Asia and (in Million)
the
% Share
Pacific
89.0
2.37
0.40
88.3
2.36
0.39
97.6
2.48
0.39
109.3
2.65
0.39
114.5
2.54
0.37
123.4
2.38
0.34
111.9
2.73
0.39
143.4
3.46
0.45
154.6
3.92
0.49
166.0
4.45
0.53
182.0
5.08
0.57
184.1
5.28
0.58
181.1
5.17
0.59
204.9
5.78
0.61
218.5
6.31
0.63
233.5
6.58
0.64
248.1(P)
6.97
0.64

Percentage (%) share

and rank of India in
Asia and the Pacific

Rank

% Share

Rank

47th
46th
50th
51st
54th
51st
44th
43rd
44th
41st
41st
41st
42nd
38th
41st
42nd

2.67
2.67
2.54
2.42
2.22
1.93
2.44
2.41
2.53
2.68
2.79
2.87
2.85
2.82
2.89
2.82
2.81

11th
12th
12th
11th
11th
11th
11th
11th
11th
11th
11th
9th
11th
11th

P: Provisional, - NA
Source:-(i) UNWTO Tourism Market Trends 2007 Edition, for the years upto 2005. (ii) UNWTO Barometer June 2010 for 2006 and
January 2011 for 2007

50

(iii) UNWTO Tourism Highlights 2011 Edition for 2008 and 2012 Edition for 2009. (iv) UNWTO Barometer April 2014 for 2010,
2011, 2012 & 2013

51