Académique Documents
Professionnel Documents
Culture Documents
On
Tourism Industry of Norway
Business Opportunities for Gujarat
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Preface
Acknowledgement
As a growing child does not need only food but nutrition and healthy food in the same way an
I.T.M.U student does not need theoretical knowledge but practical knowledge also.
The I.T.M. UNIVERSE program is designed in such a way that the students are able to get the
theoretical as well as practical knowledge of the subject which provides more confidence and
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We are thankful to Ms.Latika Karnani for their valuable guidance.
We take this opportunity to express the information and the details on our topic.
Lastly we would like to thank our family, friends and well wisher to encourage us and make us
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Index
Sr. No
I.
II.
III.
Particulars
Norway Tourism
Page No.
8
a. Introduction of Norway
9-11
b. STEEPLED Analysis
12-25
26
27-29
b. STEEPLED Analysis
30-46
47-69
Introduction to Norway
Norway officially the Kinis a Scandinavian unitary monarchy whose territory comprises the
westerngdom of Norway portion of the Scandinavian Peninsula, Jan Mayen, the Arctic
archipelago of Svalbard, and the sub-Antarctic Bouvet Island. Peter I Island is a dependent
territory and thus not considered part of the Kingdom. Norway also lays claim to a section of
Antarctica known as Queen Maud Land. Norway has a total area of 385,252 square kilometres
(148,747 sq mi) and a population of 5,109,059 people (2014). The country shares a long eastern
border with Sweden (1,619 km or 1,006 mi long). Norway is bordered by Finland andRussia to
the north-east, and the Skagerrak Strait to the south, with Denmark on the other side. Norway has
an extensive coastline, facing the North Atlantic Ocean and the Barents Sea.
King Harald V of the House of Schleswig-Holstein-Sonderburg-Glcksburg is the current
monarch of Norway. Erna Solberg became Prime Minister in 2013, replacing Jens Stoltenberg. A
constitutional monarchy since 1814, state power is divided between the Parliament, the King and
his Council, and the Supreme Court. Between 1661 and 1814, Norway was an absolute
monarchy, and before 1661, the King shared power with the Norwegian nobility. Traditionally
established in 872 and originating in one of the petty kingdoms, Norway is one of the oldest still
existing kingdoms in Europe and world-wide. The Kingdom has existed continuously for over
1,100 years, and the list of Norwegian monarchs includes over sixty kings and earls.
Norway has both administrative and political subdivisions on two levels, known as counties
(fylke) and municipalities (kommune). The Smi people have a certain amount of selfdetermination and influence over traditional territories through the Smi Parliament and the
Finnmark Act. Norway maintains close ties with the European Union and its member countries
(despite rejecting full EU membership in two referenda), as well as with the United States.
Norway is a founding member of the United Nations, NATO, the Council of Europe, and the
Nordic Council; a member of theEuropean Economic Area, the WTO and the OECD; and is also
a part of the Schengen Area.
The country maintains a combination of market economy and a Nordic welfare model with
universal health care and a comprehensive social security system. Norway has extensive reserves
of petroleum, natural gas, minerals,lumber, seafood, fresh water, and hydropower. The petroleum
industry accounts for around a quarter of the country's gross domestic product. The country has
the fourth-highest per capita income in the world on theWorld Bank and IMF lists, as well as
ninth-highest on a more comprehensive[citation needed] CIA list. On a per-capitabasis, it is the
world's largest producer of oil and natural gas outside the Middle East, From 2001 to 2006,and
then again from 2009 to 2014, Norway had the highest Human Development Index ranking in
the world. Norway has also topped the Legatum Prosperity Index for the last five years. The
OECD ranks Norway fourth in the 2013 equalised Better Life Index and third in
intergenerational earnings elasticity. From 2010 to 2012, Norway was classified as the most
democratic country by the Democracy Index.
Two centuries of Viking raids to southern and western areas of Europe tapered off following the
adoption of Christianity especially since AD 994. Norway expanded its control overseas to parts
of Britain, Ireland, the FaroeIslands, Iceland, and Greenland, and Norwegian power peaked in
1265. Competition from the Hanseatic Leagueand the spread of the Black Death weakened the
country, and when the native royal house became extinct in the 1300s, Norway was gradually
absorbed into a union with Denmark that lasted more than four centuries. In 1814, Norwegians
adopted a constitution before being forced into a personal union with Sweden. In 1905, Norway
ended the union, subsequently confirmed in a referendum, and thus over 500 years with
monarchs residing outside the country. In the same year, the country confirmed the election of its
own king. Despite its declaration of neutrality in World War II, Norway was occupied for 5 years
by forces of Nazi Germany. In 1949 it abandoned neutrality, becoming a founding member of
NATO. Discovery of oil in adjacent waters in the late 1960s boosted Norway's economic
fortunes.
History
Norwegians, like the Danes and Swedes, are of Teutonic origin. The Norsemen, also known as
Vikings, ravaged the coasts of northwest Europe from the 8th to the 11th century and were ruled
by local chieftains. Olaf II Haraldsson became the first effective king of all Norway in 1015 and
began converting the Norwegians to Christianity. After 1442, Norway was ruled by Danish kings
until 1814, when it was united with Swedenalthough retaining a degree of independence and
receiving a new constitutionin an uneasy partnership. In 1905, the Norwegian parliament
arranged a peaceful separation and invited a Danish prince to the Norwegian throneKing
Haakon VII. A treaty with Sweden provided that all disputes be settled by arbitration and that no
fortifications be erected on the common frontier.
The World Wars and 20th Century Norwegian Politics
When World War I broke out, Norway joined Sweden and Denmark in a decision to remain
neutral and to cooperate in the joint interest of the three countries. In World War II, Norway was
invaded by the Germans on April 9, 1940. It resisted for two months before the Nazis took
complete control. King Haakon and his government fled to London, where they established a
government-in-exile. Maj. Vidkun Quisling, who served as Norway's prime minister during the
war, was the most notorious of the Nazi collaborators. The word for traitor, quisling, bears his
name. He was executed by the Norwegians on Oct. 24, 1945. Despite severe losses in the war,
Norway recovered quickly as its economy expanded. It joined NATO in 1949.
In the late 20th century, the Labor Party and the Conservative Party seesawed for control, each
sometimes having to lead minority governments. An important debate was over Norway's
membership in the European Union. In an advisory referendum held in Nov. 1994, voters
rejected seeking membership for their nation in the EU. The country became the second-largest
oil exporter after Saudi Arabia in 1995. Norway continued to experience rapid economic growth
into the new millennium.
Politics In the 21st Century
In March 2000, Prime Minister Kjell Magne Bondevik resigned after Parliament voted to build
the country's first gas-fired power stations. Bondevik had objected to the project, asserting that
the plants would emit too much carbon dioxide. Labor Party leader Jens Stoltenberg succeeded
Bondevik. Stoltenberg and the Labor Party were defeated in Sept. 2001 elections, and no party
emerged with a clear majority. After a month of talks, the Conservatives, the Christian People's
Party, and the Liberals formed a coalition with Bondevik as prime minister. The governing
coalition was backed by the far-right Progress Party. But in Sept. 2005 elections, the center-left
Red-Green coalition gained a majority of seats, and Jens Stoltenberg of the Labor Party once
again became prime minister.
In April 2008, government officials agreed to amend the 1814 Constitution to loosen the ties
between church and state. The monarch must still be Lutheran, but citizens are no longer
required to raise their children as Lutherans. In the future, the church will appoint bishops
instead of the monarch, and equal financial backing for other faiths and atheist communities
must be provided by the state.
In June 2008, Parliament voted 8441 to pass a new marriage act, granting homosexual couples
the same marriage and adoption rights as heterosexual couples.
2013 Parliamentary Elections Brings Shift in Leadership
On September 9, 2013, Norway held a parliamentary election. The right-of-center coalition won
96 seats, while the Red-Green incumbent government coalition kept 72 seats. The Green Party
took one seat.
This was the fourth election for incumbent Prime Minister Jens Stoltenberg. He was defeated in
the 2001 parliamentary election, but won in 2005 and 2009. If Stoltenberg would've won in
2013, he would have been the first prime minister in Norway's history to be elected for three
consecutive terms. However, he lost and Erna Solberg, the leader of the Conservative Party, was
named prime minister. Solberg took office on October 16, 2013. Solberg became Norway's
second female prime minister. Gro Harlem Brundtland was the first.
Population
Age structure
0-14
years: 18.2%
(male
480,176/female
456,128)
15-24
years: 13.1%
(male
347,873/female
329,021)
25-54 years: 40.8% (male 1,080,339/female 1,021,370)
55-64
years: 11.7%
(male
305,094/female
298,134)
65 years and over: 16.1% (male 375,909/female 453,748) (2014
est.)
Dependency ratios
total
dependency
youth
dependency
elderly
dependency
potential support ratio: 4.1 (2014 est.)
Median age
total: 39.1
male: 38.2
female: 39.9 years (2014 est.)
Birth rate
Death rate
Urbanization
Sex ratio
at
birth: 1.06
0-14
years: 1.05
15-24
years: 1.06
25-54
years: 1.06
55-64
years: 1.01
65
years
and
over: 0.78
total population: 0.98 male(s)/female (2014 est.)
28.5
note: data is calculated based on actual age at first births (2012
est.)
ratio: 53.2
ratio: 28.5
ratio: 24.7
%
%
%
years
years
male(s)/female
male(s)/female
male(s)/female
male(s)/female
male(s)/female
male(s)/female
total: 2.48
deaths/1,000
live
male: 2.79
deaths/1,000
live
female: 2.15 deaths/1,000 live births (2014 est.)
births
births
total
population: 81.6
male: 79.63
female: 83.69 years (2014 est.)
years
years
Contraceptive prevalence
rate
88.4%
note: percent of women aged 20-44 (2005)
HIV/AIDS
prevalence rate
adult
HIV/AIDS deaths
improved:
urban:
100%
rural:
100%
total:
100%
unimproved:
urban:
0%
rural:
0%
total: 0% of population (2012 est.)
improved:
urban:
100%
rural:
100%
total:
100%
unimproved:
urban:
0%
rural:
0%
total: 0% of population (2012 est.)
of
of
of
population
population
population
of
of
population
population
of
of
of
population
population
population
of
of
population
population
Nationality
noun: Norwegian(s)
adjective: Norwegian
Ethnic groups
Religions
Literacy
definition: age
total
male: 100%
female: 100%
15
and
over
can
Health expenditures
Physicians density
21.5% (2008)
Geography of Norway
years
years
Norway comprises the western part of Scandinavia in Northern Europe. The rugged coastline,
broken by huge fjords and thousands of islands, stretches 25,000 kilometres (16,000 mi) and
83,000 kilometres (52,000 mi) and include fjords and islands. Norway shares a 1,619-kilometre
(1,006 mi) land border with Sweden, 727 kilometres (452 mi) with Finland, and 196 kilometres
(122 mi) with Russia to the east. To the north, west and south, Norway is bordered by the Barents
Sea, theNorwegian Sea, the North Sea, and Skagerrak.
At 385,252 square kilometres (148,747 sq mi) (including Svalbard and Jan Mayen) (and 323,802
square kilometres (125,021 sq mi) without), much of the country is dominated by mountainous
or high terrain, with a great variety of natural features caused by prehistoric glaciers and varied
topography. The most noticeable of these are the fjords: deep grooves cut into the land flooded
by the sea following the end of the Ice Age. The longest is Sognefjorden at 204 kilometres (127
mi). Sognefjorden is the world's second deepest fjord, and the world's longest. Hornindalsvatnet
is the deepest lake in all Europe.[54] Frozen ground can be found all year in the higher mountain
areas and in the interior of Finnmark county.Numerous glaciers are found in Norway.
Norway lies between latitudes 57 and 81 N, and longitudes 4 and 32 E.
The land is mostly made of hard granite and gneiss rock, but slate, sandstone, and limestone are
also common, and the lowest elevations contain marine deposits. Because of the Gulf Stream and
prevailing westerlies, Norway experiences higher temperatures and more precipitation than
expected at such northern latitudes, especially along the coast. The mainland experiences four
distinct seasons, with colder winters and less precipitation inland. The northernmost part has a
mostly maritime Subarctic climate, while Svalbard has an Arctic tundra climate.
Because of the large latitudinal range of the country and the varied topography and climate,
Norway has a larger number of different habitats than almost any other European country. There
are approximately 60,000 species in Norway and adjacent waters (excluding bacteria and virus).
The Norwegian Shelf large marine ecosystem is considered highly productive.
Economy of Norway
The economy of Norway is a developed mixed economy with state-ownership in strategic areas
of the economy. Although sensitive to global business cycles, the economy of Norway has shown
robust growth since the start of theindustrial era. Shipping has long been a support of Norway's
export sector, but much of Norway's economic growth has been fueled by an abundance of
natural resources, including petroleum exploration and production, hydroelectric power, and
fisheries. Agriculture and traditional heavy manufacturing have suffered relative decline
compared to services and oil-related industries, and the public sector is among the largest in the
world as a percentage of the overall gross domestic product. The country has a very high
standard of living compared with other European countries, and a strongly integrated welfare
system. Norway's modern manufacturing and welfare system rely on a financial reserve
produced by exploitation of natural resources, particularly North Sea oil.
Language in Norway
Norwegian (norsk) is a North Germanic language spoken primarily in Norway, where it is the
official language. Together with Swedish and Danish, Norwegian forms a continuum of more or
less mutually intelligible local and regional variants.
These Scandinavian languages together with the Faroese language and Icelandic language, as
well as some extinct languages, constitute the North Germanic languages (also called
Scandinavian languages). Faroese and Icelandic are hardly mutually intelligible with Norwegian
in their spoken form because continental Scandinavian has diverged from them. From the 16th to
the 19th centuries, Danish was the standard written language of Norway. As a result, the
development of modern written Norwegian has been subject to strong controversy related to
nationalism, rural versus urban discourse, and Norway's literary history. Historically, Bokml is a
Norwegianised variety of Danish, while Nynorsk is a language form based on Norwegian
dialects and puristic opposition to Danish. The now abandoned official policy to merge Bokml
and Nynorsk into one common language called Samnorsk through a series of spelling reforms
has created a wide spectrum of varieties of both Bokml and Nynorsk. The unofficial form
known as Riksml is considered more conservative than Bokml and the unofficial Hognorsk
more conservative than Nynorsk.
The krone [kun] (sign: kr; code: NOK) is the currency of Norway and its dependent
territories. The plural form iskroner. It is subdivided into 100 re. The ISO 4217 code is NOK,
although the common local abbreviation is kr. The name translates into English as "crown". The
Norwegian krone was the thirteenth most traded currency in the world by value in April 2010,
down three positions from 2007.
The value of Norwegian kroner compared to other currencies varies considerably from one year
to another, mainly based on changes in oil prices and interest rates. In 2002 the Norwegian krone
grew to record high levels against the United States dollar and the Euro. On 2 January 2002, 100
NOK were worth 11.14 USD (1 USD = 8.98 NOK). In July 2002, the krone hit a high at 100
NOK = 13.7 USD (1 USD = 7.36 NOK). In addition to the high level of interest, which increased
further on 4 July 2002, to 7 per cent, the price of oil was high. At the time Norway was the
world's third largest oil exporter.
Religion in Norway
Religion in Norway is mostly Evangelical Lutheran with 76.1% of the population officially
belonging to the Evangelical Lutheran Church of Norway in 2013. The Roman Catholic
Church is the next largest Christian denomination at 2.4% and a total of 82% belong to Christian
denominations. The officially unaffiliated make up 13.0% of the population. Islam is claimed by
2.4% of the population according to government records, making it the largest non-Christian
religion. However the state provides funds to recognized denominations according to the number
of registered members and the Evangelical Lutheran Church has a privileged place in society,
though less so after a constitutional change in May 2012, which means the official figures do not
necessarily reflect actual religious belief.
Flag of Norway
The flag of Norway is red with an indigo blue Scandinavian cross fabricated in white that
extends to the edges of the flag; the vertical part of the cross is shifted to the hoist side in the
style of the Dannenberg, the flag of Denmark.
National Anthem
Norway does not have an official national anthem, but over the last 200 years, a number of
anthems have been commonly regarded as de facto national anthems. At times, multiple anthems
have enjoyed this status simultaneously. Today, the anthem Ja, vi elsker dette landet is the most
recognized national anthem.
Economic scenario
Economic growth is projected to recover in 2014-15, after a slowdown last year which left some
slack in the economy. The impetus from the petroleum sector will be weaker than in recent years,
but non-oil exports will pick up as the global economy improves. Household consumption will
also gain strength on the back of growth in disposable income.
The remaining slack will gradually diminish. Monetary policy should, as the central bank
foresees, remain accommodative for some time in order to support the recovery. Fiscal policy
will be more expansionary, although well within the fiscal guidelines. The housing market seems
to have cooled following the tightening of mortgage lending conditions, but property prices and
banks exposure to high household debt levels should continue to be monitored carefully.
Development of Norway
According The Norwegian Agency for Development Cooperation (Norad) is a directorate under
the Norwegian Ministry of Foreign Affairs. Its task is to ensure effective foreign aid, with quality
assurance and evaluation. Norad finances NGOsand does its own research and projects. The
current director general is Villa Kulild. Norad used to be the official development assistance
organization in Norway. As of mid-2004, the responsibility for state-to-state official development
assistance has been transferred to the Norwegian Ministry of Foreign Affairs, while Norad
continues to fund NGO activities in developing countries, contributes to the management of
development funds and endeavours to ensure that the Norwegian development cooperation is
evaluated and efficient.
NORAD consists of the following sections:
Department of Evaluation
Information Department
Department of Human Resources and Administration
Department of Energy (Oil for Development, Clean Energy for Development)
Finances- For 2012, Norway's government allocated Norwegian kroner 27.8 billion for
development aid, Norway allocates a higher percentage of GDP (just over 1%) to development
aid than any other country in the world.
Overview of Industries
per cent of Norways export revenues. This is followed by the manufacturing industry, with
around 30 per cent, and the services industry, with around 20 per cent. This picture was very
different in 1980. Service industries then accounted for 34 per cent of the Norwegian export
figures. More than two-thirds of these were linked to the shipping industry, but this share has
been cut to around 50 per cent over the past few years. The traditional manufacturing industry
accounted for 33 per cent of the export revenues and the petroleum sector for 28 per cent in
1980. The primary industries did not export much at that time, but, as a result of the increased
export of Norwegian fish, they now account for 2 per cent of the export figures. Processed fish
and fish products are classified as industrial products.
Company
Revenu
e
Operating
income
Net
income
Employee
s
Statoil asa
431,112
114,449
39,045
21,213
196,234
52,224
17,224
33,218
Telenor asa
91,077
14,721
18,535
31,500
Aker asa
79,892
3,508
3,942
35,816
Orkla asa
52,683
4,480
11,263
28,663
50,592
3,942
22,722
50,577
36,261
8,787
241
49,680
35,546
8,632
48,261
3,352
4,210
7060
Esso Norge as
45,408
297
306
890
Kommunal Landspensjonskasse
43,581
5,086
5,086
312
NorgesGruppen asa
36,631
1,102
866
9,255
Company
Revenu
e
Operating
income
Net
income
Employee
s
Storebrand asa
34,074
5,549
1,505
1,305
28,812
-2,527
-2,809
9,372
28,439
14,066
11,808
11,993
Helse st rfh
26,685
-831
-747
26,336
8,663
4,334
673
25,861
1,245
1,036
Posten Norge as
23,668
1,313
856
20,541
Coop Norge as
21,884
243
160
1,635
Coop NKL ba
21,536
41
111
56
ConocoPhillips Scandinavia as
21,176
16,414
3,841
Reitangruppen as
19,875
1,236
880
2,993
Eni Norge as
18,766
13,562
3,851
121
Company
Revenu
e
Operating
income
Net
income
Employee
s
Helse Sr rhf
18,176
-986
-1,062
311
Tine ba
18,088
346
425
390
Veidekke asa
16,442
712
722
6,351
Statkraft as
16,225
9,952
6,285
1,930
Nortura ba
14,926
133
106
Norske ConocoPhillips as
14,824
10,665
2,878
Traditionally, Norway's trade has been mostly with the EU, a trend that has continued to
increase. Norways GDP per capita was 64,600 in 2008, which makes it the second highest in
the European Economic Area (EEA) after Luxembourg. In 2008, Norway emerged as the EUs
most valuable import partner for trade in good totaling at 91.85 billion. Norways trade with the
EU indicates a surplus of 48.27 billion. Further, the European Economic Area (EEA)
Agreement will be essential for safeguarding the Norwegian market interests in the huge
European market.
Norways traditional economic activities include fisheries, fish farming and shipping. In
shipping, Norway has the worlds fourth largest fleet in the world. Norways exports tripled
between the years 1974 and 1981, mostly because of the solid performance of its petroleum
sector. The oil and gas sector constitutes about 25% of the Norwegian GDP and spans 52% of
Norwegian exports. After Russia, Norway is the worlds most important non-OPEC oil exporter.
However, during the same period, Norways imports soared by 93%.
In 2008, Norways exports to the EU comprised mostly primary products (share is 71%) whereas
its share of manufactured goods exports was only 14.1% for the same year. During the same
year, services formed a major growing chunk of Norway's world trade. Therefore, Norways
exported services totaled to 31.1 billion whereas the countrys imports totaled to 29.6 billion.
Norway Trade: Exports Commodities
Norways exports include the following:
Norways exports include the following:
Oil and gas
Shipping
Wood products
Industrial machinery
Transport equipment
Hydroelectricity
Fish farming
Food processing
Seafood
Timber
Forests
Chemicals
Metals, particularly semi-finished steels, ferro-alloys and aluminium
Unwrought metals
Construction and operation of massive offshore installations and technology industry
Other mineral resources of Norway are copper, lead iron ore, zinc, nickel, titanium, pyrites,
and nickel.
Norway Trade: Imports Commodities
Capital goods
Fuels
Industrial supplies
Machinery
Transportation
Food items
Metals
Chemicals
Norways main trading partners are UK, Netherlands, Germany, Sweden, US, France,
and Denmark.
Shipping
Wood products
Industrial machinery
Transport equipment
Hydroelectricity
Fish farming
Food processing
Seafood
Timber
Forests
Chemicals
Metals, particularly semi-finished steels, ferro-alloys and aluminium
Unwrought metals
Construction and operation of massive offshore installations and technology industry
Other mineral resources of Norway are copper, lead iron ore, zinc, nickel, titanium,
pyrites, and nickel.
Norway Trade: Imports Commodities
Capital goods
Fuels
Industrial supplies
Machinery
Transportation
Food items
Metals
Chemicals
Norways main trading partners are UK, Netherlands, Germany, Sweden, US, France,
and Denmark.
Tourism is the basic and the most desirable human activity describing the praise and
encouragement of all people and government.
Hotel industry is an essential part of tourism. The expansion of tourism is well inevitable
bringing out development of the hotel industry. Hotel industry is so closely linked with the
tourism industry that it is responsible for about 50% of the foreign exchange earning form
tourism trade and enterprises. The rising volume of tourism influx brought into light, the
shortage of hotels in important tourists centers. Keeping in view the changing standards in the
international hotel keeping. The Indian industry to make a number of improvements. Its not
enough to have adequate hotel accommodations, it is equally necessary to have at various levels,
low priced, moderately priced, high priced, and a few luxury hotels.
Hotels may be categorized depending upon factors such as:
Locations
Categorization according to plan
Categorization according to number of rooms.
Categorization by type of clientele.
Categorization by the length of stay of guests.
Categorization by the facilities that the hotel offers.
The devaluation of the Asian currencies, the Kargil issue and the parliamentary elections had
affected growth in the tourism industry. The situation is gradually moving back to normal with
the tourist arrival figure marginally increasing from 2.3mn in 1997 to 2.5mn in FYOO. The
industry is growing at a rate of 9%. With the political and economic stability being more clearly
visible, both tourists as well as business arrivals are likely to gather momentum in the remaining
part of the year.
Tourist has great educational significance. Contact between people of different races and
nationalities widen ones outlook. Tourism, whether domestic or international has common
economies significance in the sense that money earned in places visited large sums of transferred
to the host economies where this money provided a source of income, a means of livelihood and
amenities for the resident population. Purchasing power is generated in the receiving areas
through the expenditure of visitors. Money received is spent and resent and this multiplier
process the host country is a beneficiary.
International tourism is of great importance in international trade in the sense that it enters into
the balance of payments of accounts of individual countries generating tourist traffic and export
for countries receiving tourist traffic. For many countries is a major item in world trade. These
countries exhibit faster growth in tourism than in trade of goods.
Domestic and International Tourism:
Usually, a distention is drawn between domestic or internal and foreign of international tourism.
In domestic tourism people travel outside their normal domicile to other areas within the country.
Barriers like language, currency and documentation are not in the domestic tourism. But in India,
since difference estates have different languages, ones own language may not serve a medium of
communication. Domestic tourism has no balance of payment implications.
When people travel to a country other that which they normally live in is known as international
tourism, the distinction between domestic and international tourism is now diminishing. The
reasons being:
Language barriers are reduced by improving language skills
Currency and customs unions are developing in many European countries.
With globalization the free movement of people is growing.
Considering the greater multiplier effect in domestic tourism, domestic tourism would have
received greater emphasis in India.
Reliable data on the growth of domestic tourists traffic are not available as not extensive survey
has been conducted on a national level by any agency, government or otherwise not given the
numerous festivals celebrated throughout out the year, the innumerable tourist's centers in the
country, the geographical expands and the resource constraints, estimates of documents tourists'
traffic through an executive survey is considered impossible.
Domestic tourism if considered separate from the travel for religious and commercial purpose. It
is a post-independence phenomenon. Industrial growth, improvement in the standard of living,
rise in disposable income and most importantly the improvement of tourist infrastructure search
as hotels, air, train and road transport has contributed to the impressive growth in tourist traffic.
The definition of a domestic tourist is a person who travels within the country to a place of
residence and stays at hotels or other accommodations establishments run on commercial basis
or in dharmashalas, sarais, chaultries etc. for duration of not less than 24 hours.
The factors that govern the magnitude of domestic tourist traffic are the religious and cultural
importance of a place. The extent of manufacturing, business and trading activity, the climatic
conditions, the infrastructure facilities available and the geographical location etc. the current
rough estimate of domestic tourism in India is ten million a year.
The Indian hotel business focuses largely on foreign tourists with only 30% of the business
coming from the domestic business and the leisure travels. The tourist arrivals in India are
seasonal in nature, with the best season being from September to December followed by a steep
fall till May. The period June to September gains momentum once the monsoons are over. The
slack season is generally used for renovation work and the period is characterized by discounts to
attract clients.
High capital expenditure acts as an entry barrier in the industry with the availability of prime
land at economically viable rates being a major constraint. The gestation period is long and break
even normally takes five to eight years to happen. Due to this the established players like Indian
Hotels, E.I.H, etc. have an advantage over foreign majors as they already have well
establishments at prime locations.
India was late to wake up to the potential of tourism as an industry that is not just an earner of
previous foreign exchange but also one that could generate a lot of employment through
horizontal and vertical linkages. The importance and significance of tourism could be understood
from the observation of UNESCO, which says, "tourism is a traditional instrument, which
enables culture to the rehabilitated and made know to the rest of the world". It is said it's a
smokeless industry and has become second to the petroleum industry in world trade.
Tourism Planning in India:
The outlay for tourism development was Rs.8 crore in the third plan Rs.186.46 crores in the sixth
plan and Rs.326.16 crores in the seventh plan. It was during the sixth plan that a tourism policy
was formulated and presented before the parliament. The sixth plan is an objective envisages
optimum use of infrastructure, regionalizing tourist traffic and increase in accommodation and so
on. However, the plan turned out to be a very mere blue print for action for tourist development.
The seventh plan (1985-1990) set a target of 1.5-million tourist arrival by 1990 and 3 million by
2000 AD. It also recommended according industry status to tourism in order to encourage private
sector investment in tourism.
It was also recommended that public sector would focus on basic infrastructure development,
and the private sector would be in encouraged to develop tourism. For the first time domestic
tourism was sought to be encouraged for promoting social and cultural cohesion and
Minister on 23rd June, 2011. In this presentation, various initiatives required to be taken for
development of tourism during the 12th Plan were also discussed. The content of the
presentation were also deliberated upon by various Sub-Groups of the Working Group on
Tourism set up by the Planning Commission. After detailed discussion Working Group has
recommended the following strategies for development of tourism during the 12th Plan.
Employment Generation
Using the data on share of tourism in the total jobs in the country available from Tourism
Satellite Accounts (TSA) for 2002-03 and estimated for years till 2007-08, the total number of
jobs (direct and indirect) in the tourism sector in 2016 is likely to be 77.5 million as compared to
53 million in 2010. Therefore, an additional employment of 24.5 million (direct and indirect)
may be created during 2010 to 2016.
Initiatives to achieve the target
To achieve various targets and address the challenges involved in the tourism sector during 12th
Five Year Plan, following initiatives are proposed to be undertaken:
Skill Development
Enhancing the institutional infrastructure of Hospitality Education by
Opening new Institutes of Hotel Management (IHM) and Food Crafts Institutes (FCI)
Augmenting the capacity of existing IHM/FCI
Facilitating private sector investments
Hospitality Education to be broad based to cover
Universities/Colleges
Polytechnics
Industrial Training Institutes
Vocational Education at +2 level through CBSE and other State Level Boards
Infrastructure Development
Identify major Circuits/Destinations having potential to attract large number of visitors
for development in Mission Mode
Develop Tourism Parks to be located in developed/underdeveloped/unexplored area of
tourist interest
Identify clusters of villages having unique craft, ethnic art form for development as
Tourism Products
Development of existing circuits/destinations to be continued under MoTs current
scheme.
Hygiene and Sanitation
Sanitation, solid waste management and clean water major concerns for tourists
Sensitizing and awareness generation of all stakeholders required
Ministry to undertake major social awareness campaign under Atithi Devo Bhava
initiative
Marketing, Branding & Promotion
Developing new markets CIS, ASEAN, Middle East and African countries
Opening new representative offices overseas for wider reach
Developing and promoting new tourism products
Golf Polo, Wellness & Medical, MICE, Caravan, Cruise, Adventure and Wildlife tourism.
Taxation
Currently the taxes levied on tourism sector are very high. To get the maximum
dividends from tourism taxes levied on tourism industry should be unified, rationalized
and made globally competitive.
Convergence
As tourism is a multi-sectoral activity, active convergence in the resources of various sectors
involved in promotion of tourism at Central and State level is necessary for achieving the
optimum results. For achieving the best results in Convergence, following measures will be
required: A Committee may be constituted under the Chairmanship of Prime Minister with
members from concerned Ministries such as Culture, Civil Aviation, Road Transport &
Highways, Urban Development etc.
better commercial conditions in the Indian market for Norwegian ship owners. I will stress
the importance of both these agreements during my conversations and talks with my Indian
colleagues, Minister Nath and Minister Baalu in New Delhi, says Minister Andersen.
During the visit the focus will be on Indo-Norwegian economic cooperation in a range of
sectors such as the energy sector, the maritime sector, the marine sector, trade and services as
well as tourism. Both Indian and Norwegian businesses stand to benefit from closer
cooperation in these areas.
The political and economic importance of India, locally, regionally and globally, is
increasing. The country's economic growth over the past ten years has been impressive, and
all evidence suggests that the increase will continue. Considerable investments are being
made towards improving Indian infrastructure and securing Indian energy resources. Foreign
investments have increased considerably over the past years. India is thus a market with
enormous potential and opportunities.
The following basic facts are important:
(i)
(ii)
(iii)
Most
Norwegian
Indian
visitors
need
Norway
has
its
businesses
can
valid
Schengen
Visa
resident
Embassy
understand
to
enter
in
New
English
Norway
Delhi.
Norway has the potential for being an excellent partner for Indian businessmen in a number of
ways. The country has an economy that defies stereotyping. While it is not a member the
European Union, it is within the European Economic Area. It is a highly industrialized economy,
but relies on commodity exports: Norway is one of the world's largest exporters of oil as well as
natural gas. Norway's 5 million citizens enjoy per capita income of approx. $ 98,000 (nominal);
$ 55,300 (PPP) per annum. On average, each citizen of this country imports $ 11,000 worth of
goods annually and goes abroad twice for tourism. Under Norwegian law, the entire oil & gas
export revenue is invested abroad under Government Pension Fund-Global, which has a total
corpus of over US$ 700 billion at present. It also invests in India There are also other large
Norwegian
investors.
Trade with Norway
As shown by the latest Norwegian official figures the bilateral trade has witnessed rapid growth:
India
(all
Year
Norway
values
Bilateral
in
Trade
NOK
Figures
million)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Norway'
s imports
1496.
2224.
870.8 833.9 949.0 1188.7 1372.3
1696.5 1965.9 2117.0
2984.2 3356.7 2802.0
from
7
4
India
Norway'
s
2147.
2548.
434.3 528.8 491.2 867.1 1291.0
3394.3 3089.1 3466.8
2475.7 2075.9 1556.3
exports
2
7
to India
Total
1362.
3643.
4773.
1305.1
1440.2 2055.7 2663.2
5090.8 5055.0 5583.8
5459.9 5432.6 4358.3
Trade
7
9
1
The Annual Member Meeting of the Norway India Chamber of Commerce and Industry
(NICCI) was a power-packed discussion on the burgeoning Norway-India business relations in
Oslo on Thursday, December 4, 2014.
Free Trade Agreement between EFTA States and India likely to be signed soon
Amidst a group of prominent faces from both Norwegian and Indian businesses, the State
Secretary of Trade and Industry, Dilek Ayhan emphasized that the conclusion of negotiations
between the European Free Trade Association (EFTA) and India is the most significant matter of
discussion with India at the present. Negotiations are very advanced and only a small number of
technical issues remain to be solved. I am confident that the final result will be a mutual benefit
for both the countries, she said. In the light of the ongoing negotiations, Dilek Ayhan also
announced that Norway remains committed to continue the work in order to conclude the
negotiations and that the Minister of Trade and Industry, Monica Mland intends to be in India
in the near future.
Addressing the key issues in the broad-based free trade agreement (FTA) between the EFTA
states and India, Indian Ambassador to Norway, NAK Browne also assured that the recent 13th
round of negotiations held in November in New Delhi has made a considerable headway. We
(both Norway and India) are both on the same page on this issue. We are waiting to resolve some
technical issues. The moment that gets out of the way, we will be ready to implement the EFTA
agreement. And, I hope, by next year, we should have the benefits of EFTA agreement, he
asserted.
Norway to make the most of the momentum after the State Visit
After the successful state visit by the President of India to Norway in October, the State
Secretary reiterated that it is time to make the most of the momentum to focus on what can be
done to make the partnership between our countries even stronger. We would like to look ahead
and try to introspect on the future potential for the Indo-Norwegian economic relations. One of
the highest priorities in our partnership with India is to further increase trade and investments,
she said.
Modest trade between the countries: a concern
However, both the State Secretary and the Indian Ambassador expressed their concern for the
modest volume of trade between the two countries in spite of the fact that trips between the two
nations have tripled and Norwegian investments in India have increased eight-fold during the last
ten years. Our countries are not utilizing the full potential of the trade relations.
India as a preferred destination for business and investments
Considering the recently held State Visit by the Indian President to Norway a fillip to the robust
bilateral ties between Norway and India, Ambassador NAK Browne assured that there is a
tremendous amount of vigour in the way the present government in India is dealing with
commerce, trade and investment. Making a strong pitch for India as a preferred destination for
business and investments, Ambassador Browne emphasized that India can offer a great amount
of return on investments and that the groundwork has been made in order to attract foreign
investments to the country. Insinuating to a recent survey by PricewaterhouseCoopers (PWC), he
also added that the FDI flows to India is to remain buoyant in the coming quarter. FDI flows into
India will be valued at 14.1 billion US$ in the first five months of 2014-2015 and 3.5% year-onyear increase from the same period in the last fiscal, he added.
On this occasion, Ambassador Browne took the opportunity to extend an invitation to the Prime
Minister of Norway and the State Secretary of Trade and Industry to address the forum of
In recent years, both countries have been increasingly tapping bilateral economic and
technical complementarities.
There have been regular exchanges of high level visits between the two countries. Visits
from the Norwegian side during the last three years have included those of Prime Minister
Jens Stoltenberg in early February 2010 for the Delhi Sustainable Development Summit
(DSDS); Minister of Agriculture and Food Lars Peder Brekk in February, 2010; Foreign
Minister Jonas Gahr Stre in early March 2010 to co-chair the India-Norway Joint
Commission Session; Minister of Environment and International Development Erik Solheim
in March, 2010, November 2010, and February 2012; Trade and Investment Minister Trond
Giske in October 2010; Minister of Higher Education and Research Ms. Tora Aasland in
early February, 2011; Minister of Local Government and Regional Development , Ms. Liv
Signe Navarsete, from 10th to 13th January 2012; and, Minister of Government
Administration, Reform and Church Affairs to India, Ms. Rigmor Aasrud, from February 6-8,
2012.
There have also been several Ministerial level visits from India to Norway, including that of
Shri Chidambaram, the then Finance Minister in October 2007 and Shri Kapil Sibal, Minister
of HRD in July 2008. Ministerial visits from India during 2010 included those of Minister of
State for S & T and Earth Sciences Shri Prithviraj Chavan in June 2010 to enhance
cooperation on Polar Research and other areas in Science & Technology and Dr. C.P. Joshi,
Minister for Rural Development and Panchayati Raj in September, 2010 to sign the MoU for
Mutual Cooperation on Local Governance. Shri Pawan Kumar Bansal, Honble Minister of
Earth Sciences, Science and Technology & Parliamentary Affairs, visited Norway from 17-22
May 2011 to further enhance cooperation on Polar Research and Science & Technology.
Honble Minister for Shipping Shri G.K. Vasan visited Norway to attend the Maritime
Summit held in Oslo on 24 May 2011 and to increase bilateral cooperation in the area of
shipping. Shri Pallam Raju, Honble Minister of State for Defence, made a goodwill visit to
Norway from 26 September to 1 October 2011. Dr. Farooq Abdullah, Honble Minister for
New & Renewable Energy from 10-12 October 2011 visited Oslo to attend the Conference,
Energy for all: Financing Access for the Poor India-Norway Joint Commission sessions are
held on a regular basis under the chairmanship of the respective Foreign Ministers, the last
session having been held in New Delhi on March 2, 2010. Foreign Office Consultations
between the two Foreign Ministries are held on an annual basis, alternately in New Delhi and
Oslo, at the level of Secretaries. Norway has extended its support to Indias bid for a
permanent seat in the UN Security Council, as well as for Indias candidacy for a nonpermanent seat in the Security Council for the period 2011-2012.
MOUs
MoU between Foreign Service Institutes of the
two countries(2005)
Trade
Exports from Norway to India include electronic goods, general industrial machinery, scientific
control equipment, artificial resins, plastic materials, non-ferrous metals, while the main items of
export from India to Norway include transport equipment, apparels, cotton yarn and fabrics,
miscellaneous manufactured articles, metals, non-metal mineral items, paper products, cashew,
furniture, travel goods, leather items, coffee, tea, spices and footwear. There has been a
substantial growth in economic and commercial relations between India and Norway in recent
years especially in areas such as oil and gas, shipping and maritime industries, renewable energy,
offshore projects and service sectors. This has given a major fillip to bilateral trade with the total
trade between India and Norway as per Norwegian figures reaching USD 973 million in 2011 as
compared with USD 167.78 million in 2003.
Investments
Around 70 Norwegian companies are engaged in India either through joint ventures with Indian
partners or through wholly owned subsidiaries. Over 100 Norwegian companies have shown
interest in possible business prospects in areas such as ship building, petroleum related services,
marine/subsea drilling equipment, hydropower, clean energy, and IT services.
ONGC and Reliance Industries have tie ups with Norwegian companies in the petroleum and
energy sector. There has also been a trend of Norwegian IT companies to either offshore their
business to India or acquire shares in Indian companies. Indian IT majors like Tata Consultancy
Services, Infosys, ITC Infotech, Larsen & Toubro Infotech and Wipro have increased their
presence in Norway over the last few years due to the existing potential of IT outsourcing
contracts in the country.
Norwegian expertise in maritime operations, have been in demand in India and the Norwegian
shipping industry has likewise discovered the potential and economic viability of building
vessels in Indian ship yards. More than 30 ships are in the pipeline, being built or delivered from
Indian shipyards on orders from Norwegian ship owners. Telenor, Norways largest telecom
company, has bought 60% stakes in Indias Unitech Wireless with an investment of US $
1200 million and launched its mobile services in India. Another major Norwegian investment in
India has been by their largest paint manufacturer, Jotun. Indian companies have also invested in
Norway over the last few years. One of the largest investments was by Chennai-based Aban
Offshore which took over Norwegian drilling company Sinvest in early 2007, in a deal worth
around $1.3 billion. Another Chennai-based company, Siva Ventures acquired the Norwegian
shipping company, J.B. Ugland Shipping AS for US $ 300 million in 2008; it has also acquired a
Norwegian bottled-water company, Isklar AS, in 2010. Tata Motors recently bought a 50.3%
stake in Norwegian company Miljo Grenland/Innovasjon, which specialises in developing hitech batteries for electric vehicles.
Norwegian investments in India are estimated at US $ 5.611 billion as of June 2011, including
equity and fixed income investments of US $ 3.311 billion across 266 Indian stocks made by
Norges Bank (Norwegian Central Bank) as part of Norways Pension Fund Global. Indian
investments in Norway are estimated at US $ 1.833 billion. The overall bilateral economic
engagement is estimated at over US$ 15 billion. Punjab National Bank inaugurated its
Representative office in Oslo in January 2009, while DNBNor, the largest Norwegian Bank
opened its Representative Office in Mumbai in February 2009. The process is underway to
upgrade PNBs representative office in Oslo to that of a Branch.
Science & Technology
During the second meeting of the Joint Working Group on Science & Technology held in Oslo in
May, 2009, a Programme of Cooperation was signed by the two sides. Three Arctic Missions
from India have so far visited Norway, in 2007, 2008 and 2009. Indias Polar Research Station
Himadri was inaugurated by S&T Minister Shri Kapil Sibal at Ny Alesund in Svalbard
on July 01, 2008. The Research Station was also visited by S&T and Earth Sciences Minister
Shri Prithviraj Chavan in June 2010 and his successor in the said Ministry Shri Pawan Kumar
Bansal in May 2011.
Health
In pursuance of its commitment to achieving Millennium Development Goals 4 & 5 to bring
down infant mortality and improve maternal health, Norwegian Government is supporting
programmes in five Indian states (UP, Bihar, Rajasthan, MP and Orissa) to the tune of US$ 80
million over the 2006-2011 period, as part of the Norway India Partnership Initiative. Separately,
under bilateral Bio-Technology co-operation, Norway is providing NOK 50 million for human
vaccines research and NOK 15 million for animal and fish vaccines research.
Indian Community
The size of the Indian community in Norway as on 1 January 2010 was 9747, of whom 5882
held Norwegian passports and 3865 are NRIs. Most of the Indians living in Norway are
professionals and highly successful in their respective fields. According to Norwegian
Immigration Department figures,
India has become the leading source of foreign skilled professionals working in Norway. The
number of skilled professionals from India has gone up from just 100 in 2005 to 1406 in 2009.
Visas
As compared to the past, many more Norwegians are now travelling to India for tourism and
business purposes. The total number of visas issued the Embassy of India, Oslo have gone up
from 8956 in 2005 to 16043 in 2011.
India - Travel & Tourism Total Contribution to GDP - Travel & Tourism Total
Contribution to GDP - % share
The share of Travel & Tourism spending or employment in the equivalent economy-wide
concept in the published national income accounts or labour market statistics. Visitor exports are
compared with exports of all goods and services Domestic Travel & Tourism spending is
compared with GDP Government individual Travel & Tourism spending is compared with total
government spending Internal Travel & Tourism consumption is compared with total internal
consumption (i.e. total domestic spending plus total export) Leisure Travel & Tourism
contribution to GDP is compared with total GDP Business Travel & Tourism contribution to
GDP is compared with total GDP Travel & Tourism capital investment spending is compared
with all fixed investment spending
Date
Value
Change %
2014
6.8
3.03%
2013
6.6
1.54%
2012
6.5
-1.52%
2011
6.6
1.54%
2010
6.5
-2.99%
2009
6.7
-6.94%
2008
7.2
0.00%
COMPANY/INDUSTRY DETAILS
Our offices in Delhi and Arunachal Pradesh coordinate your itineraries. Coupled with our
wide personal contacts in the North East, this enables us to provide the holiday experience you
seek.
Address
Ms. Neharika Sahgel
Mr. Jamoh Umbrey
Delhi office
Flat -582, DDA Flat, Pocket-16, Sector-3, Adarsh Apatment. Dwarka,
New Delhi-110075
(M) 09891150059/09911192874
011- 28086289
Address
Contact Details
62343
03759)
Namsai,
40378
Lohit
District,
03759)
Arunachal Pradesh.
40368
03759)
(STD:
(STD:
(STD:
Mrs.
Yane
Dai,
Managing
Director,
Donyi Hango Adventure Tours And 'C'
Sector,
+91-360-244977.
Travels.
Naharlagun,
Arunchal
Pradesh791110.
Tribal Voyage.
Ms.
Aruna
Ngemu,
Managing
Director,
'O'
Point
Tinali,
+91-360-2244731
Near
PCCF
Office,
Itanagar,
Arunachal Pradesh
Himalayan Holidays.
Mr. Tsering
Wange,
Managing
Director,
ABC
Building,
Main
Market, +91-3782-222017
Bomdila,
Arunachal
Pradesh790001.
Tribal Adventure.
Mr.
John
Panya,
Managing
Director, +91-360Borun,
2243887,
Naharlagun,
2245980.
Arunachal Pradesh.
Mr.
Lawrence
Koj,
Executive
Director,
D.N. College Road,
(Near
Water
Tank)
Vivek
Vihar,
Itanagar,
Arunachal
Pradesh791113.
Mr.
Tilling
Dolley,
Managing
Director,
Talle
Valley
Road, +91-3788Ziro,
225221,
Arunachal
Pradesh791120.
Mr.
Duyu
Managing
Vivek
Itanagar,
Arunachal
791113.
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Mr.
L.
Umbrey,
Director,
P.O.
Roing,
+91-3803-222585
Lower Dibang Valley
District,
Arunchal Pradesh.
+91-3602217534,
2211054
(O)
+91-3602213041,
2246902 (R)
Tamo,
Director,
+91-360Vihar,
2216450,
+91-360-2218056
Pradesh-
The tourism sector is among the top 10 sectors in India to attract the highest foreign direct
investment (FDI). In the period April 2000 August 2014, this sector attracted around US$ 7,441
million of FDI, according to the Department of Industrial Policy and Promotion (DIPP).
A high and positive growth of 12.5 per cent was registered in foreign tourist visits (FTVs) to
north-eastern states of India during 2012 from 2011, which further rose by more than 100 per
cent to register a growth of 27.9 per cent during 2013 from 2012. Among these north-eastern
states, Manipur recorded the highest FTVs followed by Arunachal Pradesh and then Tripura.
FTAs in India witnessed a growth of 12.9 per cent in the period July 2013 July 2014, according
to data received from Ministry of Tourism, Government of India. The FTAs during the period
JanuaryJuly 2014 stood at 4.11 million as compared to 3.87 million during the corresponding
period of 2013, registering a growth of 4.4 per cent. USA contributed the highest number to
foreign arrivals in India followed by Bangladesh and the UK.
Foreign exchange earnings (FEE) during JanuaryJuly 2014 stood at US$ 11.055 billion as
compared to US$ 10.85 billion during the same period last year. FEE during July, 2014 stood at
Rs 10,336 crore (US$ 1.68 billion) compared to Rs 8,620 crore (US$ 1.41 billion) in July, 2013.
Road Ahead
The medical tourism market in India is projected to hit US$ 3.9 billion mark this year having
grown at a compounded annual growth rate (CAGR) of 27 per cent over the last three years,
according to a joint report by FICCI and KPMG. Also, inflow of medical tourists is expected to
cross 320 million by 2015 compared with 85 million in 2012.
The tourism industry is also looking forward to the E-visa scheme which is expected to double
the tourist inflow to India.
STEEPLED Analysis
Norway Tourism
Social Environment
The improvements of infrastructure and new leisure amenities that result from tourism also
benefit the local community.
Tourism encourages the preservation of traditional customs, handicrafts and festivals that might
otherwise have been allowed to wane and it creates civic pride. Interchanges between hosts and
guests create a better cultural understanding and can also help to raise global awareness of issues
such as poverty and human rights abuses.
There is some concern that tourism development may lead to destinations which may lead
cultural identity by catering for the perceived needs of tourists particularly from international
markets.
A community involved in the planning and implementing of tourism has a more positive attitude,
is more supportive and has better chance of making a profit than a population passively ruled
or overrun by tourism.
The core elements of sustainable tourism development is community development. This gives
the community the process and capacity to make decisions that consider the long-term economy,
ecology and equity of all communities.
Tourism provides opportunities for regional development particularly for regional areas
undergoing structural changes. Being a labour intensive industry, the right encouragement
tourism can deliver great employment and training opportunities particularly for young people.
Tourism can help to foster a sense of community pride as visitors choose to visit a location for a
reason.
However, community pride is related to economic prosperity with affluent communities more
likely to take pride in their district. Well-presented towns and well-maintained facilities help the
visitors to feel welcome and can contribute to community pride.
Tourism can be used as a tool for raising awareness. Branding of local product and achievements
are created for regional identity both nationally and internationally. Tourism can also raise
awareness of local issues and needs of people.
Tourism can boost the preservation and transmission of cultural as well as historical traditions.
This often contributes to the conservation and sustainable management of natural resources,
protection of local heritage and a revival of indigenous cultures, cultural arts and crafts.
Technological Environment
Technology is key connection to the innovation of our products and services.
Making Waves is a consulting company in Norway and they use content analysis, insight into
users online behavior and design thinking to develop innovative digital services.
With design thinking at core they believe that true insight into consumers needs combined with
a deep understanding of business processes and opportunities across tourism sector is key to
deliver innovative and engaging service concepts and experiences that offer added value.
Technology design has a key connection to the innovation of product services and business
models for our solutions.
This focuses on user-experience is also influencing our clients organizational structure and
business culture. They use design and technology to transform how our clients operate,
communicate and manage information. They look at entire customer journey with digital product
at the center of their solutions.
Ecological Environment
Today lives in Norway means enjoying a comfortable city life as well as living in an ecosystemcentered value system. Norway is not only recognizes the risks of climate change, but also tries
to limit it. Through ecological environment, Norwegian society expresses its deeply egalitarian
and humanitarian ideas. The government has turned this state of mind into the policy of
sustainable development ("meeting the needs of present generations without compromising the
ability of future generations to meet theirs") and an idea that encompasses almost every sectors
of society.
Multinational team with understanding of local markets;
1. In their offices in Oslo and Krakow(Norway), Making Waves employs consultants not
only from the local markets but also from the United Kingdom, Germany, Spain, Austria,
Italy, USA, Canada, Italy and across Scandinavia.
2. This offers a unique blend of expertise and understanding for tourism sector from across
the borders.
3. With background in journalism, content creation, graphic design, web strategy, linguistics
and translations, international relations and tourism, there team can provide content both
engaging and effective in building a destination brand, presenting travel related services,
or providing online visitors a flavor of their offering.
4. Whether the organization is looking to market a city, country, hotel, venue, cruise line or
airline, Making Waves can work with you to deliver the best web strategy and digital
solution for your customers worldwide.
Economical Environment
Tourism in Norway is mainly nature-based. An important contributor to the countrys economy.
Tourism is also an important tool of counter centralization, through the creation of livelihoods in
the districts.
Tourism accounts are for approximately 4 per cent of Norways GDP and employs 7 per cent of
the work force. Much of the tourism is nature-based and there are some environmental concerns
related to the consequences of tourism for wilderness areas.
The indirect effects add 30 to 40 percent output value to the direct production effects of tourists'
spending. Total direct and indirect effects generate approximately 10 percent of total output in
each county (public services not included), 7-9 percent in retail businesses and between 54 and
65% of output in the hotel and restaurant sector.
Tourism in Norway is characterized by a strong fluctuation in demand that are a consequence of
seasonal concentration. This results in to number of challenges for the Norwegian tourism
industry including the ability to generate profits and attract and retain staff at all levels.
4.
3. Sustainable travel and tourism products and services can boost sales
Norway being a nature tourism destination in green sustainable products and services fit well
into product development and marketing strategies. There was increased activity and
engagement by the tourism industry to present sustainable products and services during the
review period in Norway .
Programs like Norwegian Ecotourism, a customized scheme for nature-based travel and
tourism enterprises, as well as environmental labeling programmers emerged during the
review period, including Scandinavian eco-label Swan, Eco-Lighthouse and ISO 14001. On
one side large chains such as travel accommodation providers were active in eco-labeling,
but smaller providers were also interested in sustainable positioning. Green travel products
and services will represent opportunity to add value to products and services in a competitive
environment during the forecast period.
4. Sales growth of travel products will be moderate during the forecast period
Value sales of travel and tourism products are expected to grow moderately during the forecast
period. This will be mainly because of intense competition and discounting taking place in
several categories. Due to this development, the unit prices are expected to face strong pressure
in most categories. While transportation and car rental are likely to see significant price
competition and other categories such as travel accommodation and tourist attractions could see
value added by active engagement from companies through strategies such as environmental
certification and labeling.
Political Environment
Tourism is generating receipts of US$ 476 billion in 2000 and growth rates above five per cent
per annum, tourist destinations have a lot to lose if they lose their attraction to tourists.
While Europe and Northern America are still by far the main tourist destinations, the developing
regions in the world increase their market share rapidly.
Many of developing countries also derive a much higher share of their GDP from tourism
receipts than developed countries.
Developing country regions, in which tourism is growing fastest, have been benefited from
providing low-skilled and labor-intensive tourism services that can provide an income stream,
which is steadier than the volatile receipts from natural resource extraction (Levantis and Gani
2000).
Tourism represents an important contribution in the economic development in many developing
countries see Sinclairs (1998) comprehensive survey. Unfortunately in the developing country
regions are also more vulnerable as they represent the main locations of violence.
For a number of reasons, the events of violence are likely to impact upon tourism both
contemporaneously and with lagged effects. Tourists might be locked into bookings which are
already made and it takes time to realize the full extent of the instability.
As the tourists are sensitive towards the negative image of a tourist destination, events of
violence can affect a tourist destination long after the event has passed and stability has, in effect,
been restored. Tourism will only bounce back to what it was before if the negative image is
erased from the tourists mind. Depending on how sustained the period of violent events and
negative media coverage has been. This might take years.
Countries with a negative image due to the past events of violence often attempt to improve
their image with aggressive advertising campaigns trying to portray themselves as entirely safe
destinations.
Legal Environment
The policy tools adopted for environmental evaluation of Norway are different for the countries.
Norway has adopted an administrative approach to scrutinize environmental implications of
tourism policies. The requirements are provided in principle basis (i.e. contains the basic
components / requirements for evaluation) rather than prescriptive procedural approach.
There are twelve (i.e. Austria, Denmark, Finland, Netherlands, Norway, United Kingdom,
Australia, Canada, United States of America, China, Japan and South Korea) out of which
nineteen countries have environmental evaluation mechanisms for tourism plans and
programmers.
Norway is adopting both statutory and administrative framework while the other countries
adopted either administrative or statutory policy tools.
If a tourist, who neither live, study, work or have a spouse or children under 18 years in Norway,
you may use a vehicle registered in another country during the visit.
The strategic environmental assessment approach has been adopted in Norway .The requirements
of the strategic environmental assessment for tourism plans and programs of these European
countries are based on the EUs strategic environmental assessment Directive. An environmental
assessment is required if the tourism plan / program will set the framework for the future consent
of a designated project.
Two organizations, Asian Development Bank and World Bank have requirements on
environmental evaluation of tourism plans and programs. The United Nations Development
Program (UNDP) assists the countries in integrating environmental considerations during
planning and decision-making process but there is no stated requirement.
This describes the environmental evaluation requirements in Norway, Which have environmental
evaluation mechanisms for tourism policies and / or tourism plans or program.
Requirement for scanning and screening of Norway tourism
The requirements for screening and scoping vary with the countries;
1
Environmental report for analyzing the assessment results of tourism policies and / or
plans and programs is required in Norway..
The content which are requirements in the environmental reporting are provided in the
The environmental report for describing and analyzing the assessment results is not
required in Norway.
Ethical Environment
With the Norway being a nature tourism destination, green sustainable products and services fit
well into product development and marketing strategies. There was increased in activity and
engagement by the tourism industry to present sustainable products and services during the
review period.
Programs like Norwegian Ecotourism, a customized scheme for nature-based travel and tourism
enterprises, as well as environmental labeling programs emerged during the review period,
including Scandinavian eco-label Swan, Eco-Lighthouse and ISO 14001.
On other hand large chains such as travel accommodation providers were active in eco-labeling,
but smaller providers were also interested in sustainable positioning. The Green travel products
and services will represent an opportunity to add value to products and services in a competitive
environment during the forecast period.
Demographical Environment
The tourism has positive and negative effect. In the positive, the creation of employment the
increase in the economic levels the positive effect for the new inversions in the conservation of
natural spaces, avoids the migration of the local population, and improves the economic and
socio-cultural level of the local population. The commercialization of the locals products,
interchange of ideas, costumes and the sesibilization of the tourists and local population for
protection of the environment.
The tourism is one of the intensive sectors of employment, is one of the few alternatives to the
destruction of employs caused by the technological change, the globalization process and the
reduction of the working time.
The negative effects is, as important then the positives, is the rising of the consume of ground,
water, energy, destruction of landscapes with the creations of news infrastructures, the raise in
the production of disposals, the alteration of ecosystems, the introduction of exotic species of
animals and plants, the lost of traditional habits, the raise of the prostitution (sexual tourism), the
narcotic traffic, more forest fires and the raise of the prices of the houses.
Tourism of beach:
The most common way of tourism and one of the most dangerous for the
environment principally by the concentration of people in zones relativity small as it
produces impacts by the high-operation of resources, the increase in the production of
remainders, the increase in the prices of the houses, and another types of impacts that
have been treated previously
Adventure tourism:
It maybe the worse one of all the tourism, usually it goes to unaltered zones, and
quickly degrades by the discharge by the high consumption of resources to per
capita, the problem bends if this takes control of all-terrain vehicles, that used to go
out of the paths
moving to rural areas that is far away from cities and this is causing a reorganization of the economic activity of the rural areas
5
Eco-tourism:
It's supposed to be the sustainable tourism, is tourism non-massed, that it does not
consume you seed amounts of resources, in which his users are consciences with
the nature and tries to diminish the impacts.
Agro tourism:
It is also related to sustainable tourism. It's a kind of tourism in which the tourist
takes part of agricultural activities in farms, and places like this. The farmer
welcomes guests and he shows them his job related to how to be in touch with the
animals, the plants, the craft, etc. This kind of tourism gives life to the rural area,
and it proposes comforts in agreement with the habits of the area.
If the duality does not take place, frequent enough situation, the tourism can cause an
inflationary tendency. This inflationary tendency takes place by the pressure that settle down on
the ground, prices and taxes that directly affect the local population, without considering the
previous uses and customs.
In the zones where the tourism becomes an institutionalized activity the inflation becomes patent
in the disturbed ascent of the Earth, the goods, the food etc. For that directly they are involved in
the tourist development the benefit is high, but not thus for the rest of the local population.
The correlation between the generation of income by the tourism is recognized and the use
creation, the created positions, that as a whole reduce the figure of unemployment, is it on time
partial or on time complete but unstable temporarily.
The low potential productivity of the work in the Tourist Company can have a depressive effect
on the local economic growth.
The entirely exposed one previously can be transformed in costs derived from the fluctuations of
the tourist demand: a destiny that have attractive for the visitors.
Social cost:
The social impact on the receiving areas of tourism like any other aspect related to the sector can
have positive and negative effects.
It is possible to emphasize the recovery and conservation of cultural values that but for the
attractiveness which it offers to the visitors, would be gotten to lose. It is the case of a
preservation and historical monument rehabilitation and places, whose cost the small
communities cannot do in front.
Nevertheless, when one is a place of tourist interest destine special economic games for his
attack. Of the same form, many of the local customs have been revitalized like part of the plans
for the tourist supply (like tourist resources).
In many places is been seen appear again traditional customs that they were had lost: folklore,
crafts, festivals, gastronomy, etc. One of the most important positive social aspects is the
improvement in the facilities and services: sanitary attention, means of transport, parks, etc.
In spite of the undeniable social-cultural impulse that these positive aspects represent, it is not
necessary to forget that a negative impact also exists.
The first remarkable negative impact is the social differences between local population and
visitors. In certain destinies mainly in those of the most underprivileged countries, the call
developing countries, the residents get to become true servants of the tourists. It creates between
the local population certain resentment towards the visitors and appears areas of social tension.
Thus the tourism establishes the bases of a new form of colonialism based on the foreign
currency dependency.
The external workers occupy the jobs, the uses that they require greater qualification, being left
the repaid works worse for the local population.
As a result, the indicated socioeconomic differences it appears what more negative of the tourism
can be considered like the social impact, the increase of prostitution, the game, the drugs, in
general criminal aspects that never had arisen without the appearance of the visitors.
Once again this circumstance is more frequent in the developing countries. The tourism also can
cause a des-cauterization of the destiny.
The local population is superior considers the culture of the tourists. Of this form the indigenous
cultures try to adapt to the customs of the visitors and they are possible to be ended up destroying
the elements that at their moment represented greater the attractiveness for the tourist.
Environmental cost:
The impact of the tourism on the environment is really the most negative aspect of the sector.
The tourist activity when becoming a massive phenomenon, requires great infrastructure and
complexes services that not always have a suitable planning, and this has taken it to become a
deteriorate constant of the natural and social environment. Non single it has transformed the
physical aspect of the tourist zones, but that has generated serious upheavals ecological:
1 destruction of ecosystems,
2 diminution of the amount and quality of the water,
3 impoverishment and contamination of grounds,
4 extinction of multiple species of the fauna,
5 Severe affectation of the flora, fishing depredation and contamination of the sea.
It has produced in addition to population and urban growth disordered and lack of services
public, among others.
Destruction of ecosystems is one of the greater threats for the ecosystems is the massive presence
of visitors.
Throughout the years, only considered at the time of exploding a zone for the tourism was the
fast enrichment of the people involved in the sector.
The tourism became an activity that sent crowds on the defenseless nature. In this context it is no
wonder that gradual destruction of numerous ecosystems took place in many countries, but
mainly in those considered tourist paradises.
Diminution of the amount and the quality of the water: The arrival of tourists to many zones
where the water is little has had a devastating effect on the reserves of this natural good.
The causes have been few: the number of visitors, whom in many case the amount, has exceeded
to which really it is possible to be supplied in many zones. The rating facilities by which water is
wasted, as they are the golf courses or the fresh water swimming pools and the city-planning
mastication, etc. All this gets to affect the agricultural development and the ecological balance of
the zone.
STEEPLED Analysis
Introduction
Arunachal Pradesh, a mysterious, magical and mystical land tucked away in the
north eastern tip of India is one of the most compelling holiday destinations in India.
This remotest outpost of the North Eastern states entices the adventurer with its
picturesque moutain peaks, swift rivers and verdant valleys.
The frontier state of India, Arunachal Pradesh shares its border with Tibet (China),
Bhutan and Myanmar (Burma). A unique habitat with glaciers, high altitude
meadows, sub-tropical forests and an amazing array of flora and fauna, all this and
more strewn generously with glistening water bodies and gushing rivers.
Its dense forests, snow clad peaks, towering mountains and roaring rivers offer
numerous opportunities for rafting, hiking, mountaineering or simply basking- in all
it's beauty
Arunachal Pradesh has more than 550 rare species of orchids and hundreds of
species of rare plants, covering more than 60% of the total area.
The wildlife is equally rich and varied, which includes elephants, tigers, leopards,
jungle cats and also white gibbons, red pandas, the musk and the "Mithun" (BOS
FRONTALIS).
Arunachal Pradesh also finds mention in literature such as the Kalika Puran and
epics like Mahabharata and Ramayana. It is believed that sage Vyasa was here to do
penance. One more interesting feature is the remains of a brick structure scattered
around two villages in the hills north of Roing, believed to be the palace of Rukmini,
the consort of Lord Krishna.
The people with a glorious past have a deep sense of beauty that finds delightful
expression in their songs, dances and crafts.
STEEPLED Analysis
Political Factor:Political Factor On Tourism Industry in Arunachal Pradesh:Arunachal Pradesh Has light of the political instability.
Arunachal Pradesh was heavily dependent on the tourism, as the sector was the 3ed-largest
revenue generator for the country. In 2013, more than 200,00 people visited Arunachal Pradesh.
According to the Ministry of Tourism, it has 244 hotels with 3,927 hotel rooms.
Politics of Arunachal Pradesh takes place in a framework of a presidential representative
democratic republic in the President of Arunachal Pradesh is head of state with a presidentially
appointed Prime Minister as the head of government, and of a many-party system. Executive
power is exercised by the government. Legislative power is west in both the government and the
National Assembly.
Political Factor On Tourism Industry In India:India has a stable democratic government. This entails stability for the tourism industry.
The center has a specifically ministry of tourism whose prime purpose is to device plans and
strategies for the welfare of Indian tourism industry.
India as a nation is divided into various smaller state and every state has its own tourism
department. These departments frequently fight with each other in ensuring higher tourist inflow
into their respective states.
Government is the gumption of the entire tourism industry and should support the private
players.
Government charges high rates of taxes on the luxury and the star category hotels. A luxury tax
of 10% followed by VAT and other service taxes of approx. 10% (on food, beverages, etc.)
makes hotel business in India very costly.
Because the political environment is not contributing, Kashmir and North- East have suffered
from tourism revenue despite the high potential they possess.
Following Godhra riots, Gujarat experienced abbreviated tourists to the state.
After years, government decided to personalization airports and now India can boast of good
airports like IGI, Delhi and Rajiv Gandhi International at Hyderabad. The ministry of tourism
design national policy of the development and promotion of tourism.
The price competitiveness of India's tourism sector 28th out of 139 countries. It mentions that
India has quite best air transport (ranked 39th), particular given the countrys stage of
development, or reasonable ground transport infrastructure (ranked 43rd).
Some other aspects of its tourism infrastructure remain somewhat underdeveloped however. The
nation has many few hotel rooms per capita by international comparison and low ATM
penetration.
The Indian government has identified a shortfall of 150,000 hotel rooms, with most of the
undersupply in the budget sector.
The Indian government aims to dual tourism revenue by 2017.
Economic Factor:Economic Factor On Tourism Industry In Arunachal Pradesh:Arunachal Padesh has a vast tourism and ther vision and ambition is to make Arunachal Pradesh
a first class tourist destination in India.
Arunachal Pradeshs tourism sector provides employment is approximately 33thousand.
The economic outlook for tourism in Arunachal Pradesh is positive. The donation of the travel
and tourism economy (including direct and indirect impacts) to GDP is expected to rise from
4.9% (US$523 million) in 2010 to 6.1% (US$1,090 million) by 2020.
The donation to employment is expected to rise from 80,000 jobs in 2010, to 129,000 jobs by
2020.
Arunachal Pradesh use to get 170,000 tourists a year, and each spent on average $100 a day.
Economic Factor On Tourism Industry In India:The Tourism sector of Indian economy is at present experiencing a huge growth.
The Tourism sector of Indian economy has become one of the major industrial sectors under the
Indian economy.
Indias tourism sector is among the fastest growing economies of the world.
Indias tourism industry earns foreign exchanges deserving 21,828 crore. Previous year the
growth rate of the tourism sector of Indian economy was recorded as 17.3%.
A higher economic growth also assures increase, in investments in the infrastructure,
promotional consumptions, construction of newer tourist boulevard, beautification of cities and
towns etc. These assure a boost to the tourism industry.
Tourism in India is the largest service industry, with a contribution of 7% per annum to the
National GDP. A higher economic growth ensures rise in annual income hence increase in
domestic tourism.
Indias tourism sector provides 8.78% per annum of the total employment in India.
India witnesses more than 17.9 million annual foreign tourist comers and 740 million domestic
tourism visits.
Capital Investment in the Indian tourism sector will increase by 8.8% per year.
The demand of travel and tourism with in India is going to increase by 8.2%. This growth rate is
3rd highest in the whole world.
In India absolute majority of foreign tourists come from USA and UK.
The tourism industry in India generated about 100 US$ billion in 2008 and that is expected to
increase to US$275.5 billion by 2018 at a 9.4% annual growth rate.
In the year 2010, 17.9 million foreign tourists visited India.
Social factor:
Social factor affect of Arunachal Pradesh tourism industry
Arunachal Pradesh has potential as tourist destination, with its rich cultural heritage, ancient
cities
and archaeological sites.
Tourism remains very small subsector of the economy.
Tourist facilities are limited. In 2012-13 some 91,00 tourists visited Mali. generating income of
aprox. US$50 million.
Social factor affect of India tourism industry
India a diverse nation with end numbers of languages, cultures, traditions, cuisines;
make it an ideal destination of cultural tourism.
The depth of diversity can be concluded from the fact that India has more than 22
constitutional languages and 1600 dialects.
Indian culture has mostly emphasized on respecting and entertaining their guests very well.
The Sanskrit Shloka ATHITHI DEVO BAHVAH (guest is god) is the essence of
Indian tradition.
This warmth and love for their guests has always been appreciated by tourists in
general and foreign ones in particular.
India has vibrant and rich history of cultures that can also attract many culture lovers
and scholars for further studies and exploration.
Most of the people at India can communicate and understand in English, This gives
added advantage to India in comparison to its neighboring counterparts in attracting foreign
tourist.
Technological factor
Tecnolological factor affect of Arunachal Pradesh tourism
The government has launched programs to develop tourism.
Arunachal Pradesh transportation facility is poor so not more tourist attact.
Arunachal Pradesh in internat facility are costly & not mor educational pertion so also affect
tourist.
Technological factor affect of India tourism industry
At this time Information Technology plays a very important role in tour planning and its
implementation.
Start from searching the tourists spots to booking hotels and transportation to transferring money
every where web based platforms are used.
In the Indian context there are plenty of such web based portals such as makemytrip, yatra etc.
India being an IT superpower is capable enough for future development of such
avenues in a very cost efficient and technologically superior way.
For the growth of tourism it is essential that a country must be equipped with state of the art
transportation facilities.
It must have very efficient transportation system that can help in transporting both large volume
of people and goods in a cost effective, fast and comfortable fashion.
SWOT Analysis
Strengths
1. Ongoing projects on electronic information towards tourists who have arrived in Norway. A
project with the goal to provide tourists with information and through this lead tourists to visit
attractions ect. in Norway (the project is called "Villmarksriket viser vei"). This information will
be provided by information-points (with internett), info.signs, electronic maps, and by directing
the information to the tourists mobile phones.
2. All tourist-enterprises have internet-access, their own web-site, and reasonable skills in the
use. Close to all tourist-enterprises in Norway, even the small ones, have internet-access, some
basic skills in the use of computers (the younger quite well thorough their basic education in
Norway). Most enterprises also have their own website with some information, and many also
have a booking-function. There are however highly variable quality of the websites, many of
them are for example only in Norwegian.
Weaknesses
1. Lack of competence and consciousness in the tourist-enterprises in distribution of
booking/sale. Although all enterprises have a sufficient infrastructure and competence, there
seems to be a lack of both enough knowledge and consciousness concerning the importance of
getting their enterprise distributed through the right electronic channels so that it can lead to
electronic sales (this concerns the many small-4 scale enterprises). This includes lack of
competence in pricing their products. This means that most of the enterprises are not present in
the national and international electronic sales channels on the internet (like hotels.com and
expedia.com).
2. Lack of coordination between different within the tourism sector. There is a wide diversity in
what kind of software and technical platforms that are used within the tourism industry. This
makes coordination and development of common systems difficult.
3. Weak links and electronic coordination between the transport sector and the other parts of the
tourist industry. In Norway, as in Norway in general, there are low coordination between
transport and the other parts of the tourist industry, both concerning products (packages) and
electronic distribution and booking. This weakens the competitive position of Norway towards
competing destinations.
4. Missing coordination of electronic information between the culture and sports sector and the
tourism industry. Culture and sports are important part of the experiences both for tourists,
inhabitants, second home owners and potential immigrants. There are however a lack of
collection of information on culture and sports events, and a lack of coordination of information
of these events with other attractions/experiences.
Threats
1. Lack of competence/interest in the national tourism sector to develop distribution and booking
within the Norwegian tourism industry. Within outbound tourism traffic from Norway there are
several companies (tour-operators, travel agencies etc) with high competence in electronic
distribution and sale, and which possesses of high qualities. These companies also help foreign
tourism enterprises (hotels, restaurants etc) to get their products distributed to the Norwegian
market. These kind of companies are however mostly absent on incoming tourism to Norway
(from both the domestic and 5 international markets). This leads to a lack of commercial and
professional distribution channels, which would be interested in supporting the small scale
tourism companies in Norway.
2. Missing links between regional policy areas relevant in the tourism sector. The regional policy
level has several policy areas that concern many of the same issues. This concerns policies for
attracting immigrants (place marketing), to enhance the living standard for inhabitants, and to
attract tourists and second home owners. It could be used more professionally to provide
information to all these groups, and the same information is relevant for all groups (for example
on events and activities). There are thus a potential in more coordination of these policy areas,
both concerning resources and practical implementation of measures.
3. Difficult to compete with other industries to attract key personnel/staff. There is a possibility
that there will be a problem of attracting key staff (with both competences on tourism) to parts of
the tourism industry in Norway. Several other industries in Norway have the possibilities to offer
better terms than the tourism sector.
4. New competition from other countries. Several other European countries make big efforts to
develop and market tourism products that will directly compete with the key attractions of
Norway (nature-based experiences/activities and skiing). These destinations can offer significant
lower prices and are close to big markets.
5. High levels of costs and prices, both in data roaming costs and the tourism industry. Norway
generally have a high cost and price level. This is also a problem on the both the domestic and
international markets, where other countries are more competitive on prices. The economic
downturn the last two years have highlighted the problem, in a situation where there are smaller
parts of the international markets that can afford to travel to Norway.
Opportunities
1. The existence of significant niche markets for the nature based tourism-products in Norway.
Most of the tourist-products in Norway , could be described as niche products, directed at
certain segments of the market (who is interested in Nordic nature-based experiences).
Internationally these segments are of significant sizes, but the tourism industry in Norway has so
far not sufficiently oriented its marketing efforts towards these segments and the electronic
distribution channels that are directed at these segments. There is also a lack of enough attractive
tourism-products within the nature-based tourism in Norway.
2. Development of international standardized ICT systems for tourism enterprises. Within few
years there will probably be developed professional, cheap and standardized ICT system for
tourism enterprises, by international ICT companies. This will reduce the costs 6 for the tourism
industry, and the enterprises can use more of their time and resources on other important issues,
amongst other electronic distribution of booking and sale.
3. Strengthen Destination Management Organizations (DMOs) in Norway. With its many small
tourism enterprises, and simultaneously an increased, there could be an opportunity to transfer
some functions (for example web, marketing, distribution) from the individual enterprises to the
DMOs. This would increase the professionalism, and make it easier to attract highly skilled
persons to the tourism industry.
4. Location close to large domestic markets and an international airport. Hedmark is located
close to the largest domestic market in Norway (Oslofjord-area) and to Gardermoen (the largest
international airport in Norway). This makes Hedmark easy accessible (in terms of distance) for
large markets.
5. A strong domestic market. In Norway there is also a growth of the elderly population (where
many have high spending power, are in good health, and have increasing capabilities in using
electronic information, including mobile devices), as in other European countries. At the same
time the birth rate is relatively high. Together with a strong national economy, this constitutes a
strong domestic market today and probably also in the next decades. An important part of this
domestic market is the many owners of second homes in Norway. They makes up a stable and
attractive market that so far have been too little utilized by the tourism industry in Norway.
Strength
1. The campaign highlights not only the tourist places in India, but also its cultural and historical
heritage.
2. The campaign managed to make a powerful visual impact on the viewers.
3. The campaign was featured sufficiently through print and TV media and hence had a good
reach.
4. The Incredible India campaign along
AtithiDevoBhava managed to gain popularity.
with
the
complementary
campaign
of
Weakness
1. Some critics believed that the campaign was meant to appeal only to the affluent tourist and
could not appeal to the average tourist.
2. The campaign was found to be uni-dimensional by some people.
3. Since India is a geographically and culturally diverse country, the campaign could not manage
to cover all the aspects.
Opportunity
1. The tourism industry is India is flourishing at a rapid rate and the Incredible India campaign
has a lot of potential to attract tourists.
2. Government spending on the tourism industry are increasing gradually.
3. A wider campaign can be planned leveraging the diversity in India.
Threats
1. Every campaign has its shelf life and so does the Incredible India campaign.
2. If the campaign fails to innovate it will lose its appeal.
3. The neighboring South-East Asian countries are investing a lot in the tourism industry which
can be a threat.
Strengths
1. Aurnachal Pradesh has a rich inventory of world class tourism resources, both natural as
well as manmade which include picturesque landscape, large forest areas, beautiful
mountains, lakes, springs- and waterfalls.
2. Arunachal Pradesh is called the Power House of the North Eastern States with highly
significant power production. The total hydropower potential available in the state is
estimated to be 30000 MW, which is one third of the entire hydro potential of the country
(84,000MW).
Weaknesses
1. Inadequate marketing of tourism products of Arunachal Pradesh
2. Deficiencies in infrastructure especially connectivity and accessibility
Opportunities
1. Arunachal Pradesh has enormous potential for development of new product ideas, some
of which are the latest craze in the western world today.
2. Heritage Tourism: The state has an abundance of historical places, Religious Places,
Archeological Sites and forts which can be suitably renovated and opened up for tourism.
3. Health Tourism: Arunachal Pradesh is rich in plants having medicinal values.
4. Entertainment Tourism: Arunachal Pradesh have a great potential for features like;
entertainment complexes such as amusement parks, water parks, cable car rides,
aquariums, casinos, sound and light shows, etc
5. Adventure Tourism: Arunachal Pradesh has significant potential for water sports (windsurfing, water skiing, sailing, crocodile dandies, etc), para-gliding, river rafting, scuba
diving, etc and trekking, mountaineering.
6. Cultural Tourism: Arunachal Pradesh has rich cultural heritage which is exhibited through
the various fairs and festivals and dances.
Threat
Being location in isolation in terms of development, the State is facing challenges, which directly
and indirectly curb the growth of tourism. The existing infrastructure, safety & Security, local
awareness and others are the major hindrance for the development of the tourism in the State.
These are as such:
i.
ii.
iii.
iv.
v.
vi.
Geography
Arunachal Pradesh is located between 26.28 N and 29.30 N latitude and 91.20 E and 97.30 E
longitude and has 83,743 square kilometre area.Most of Arunachal Pradesh is covered by the
Himalayas. However, parts of Lohit, Changlang and Tirap are covered by the Patkai hills.
Kangto, Nyegi Kangsang, the main Gorichen peak and the Eastern Gorichen peak are some of
the highest peaks in this region of the Himalayas. The land is mostly mountainous with the
Himalayan ranges running north south. These divide the state into five river valleys: the
Kameng, the Subansiri, the Siang, the Lohit and the Tirap. All these are fed by snow from the
Himalayas and countless rivers and rivulets. The mightiest of these rivers is Siang, called the
Tsangpa in Tibet, which becomes the Brahmaputra after it is joined by the Dibang and the Lohit
in the plains of Assam.
At the lowest elevations, essentially at Arunachal Pradesh's border with Assam, are Brahmaputra
Valley semi-evergreen forests. Much of the state, including the Himalayan foothills and the
Patkai hills, are home to Eastern Himalayan broadleaf forests. Toward the northern border with
Tibet, with increasing elevation, come a mixture of Eastern and Northeastern Himalayan
subalpine conifer forests followed by Eastern Himalayan alpine shrub and meadows and
ultimately rock and ice on the highest peaks.
The Himalayan ranges that extend up to the eastern Arunachal separate it from Tibet. The ranges
extend toward Nagaland, and form a boundary between India and Burma in Changlang and Tirap
district, acting as a natural barrier called Patkai Bum Hills. They are low mountains compared to
the Greater Himalayas.
Economy
The chart below displays the trend of the gross state domestic product of Arunachal Pradesh at
market prices estimated by the Ministry of Statistics and Programme Implementation with
figures in billions of Indian Rupees. See also List of Indian states by GDP.
1980
1.070
1985
2.690
1990
5.080
1995
11.840
2000
17.830
2005
31.880
2010
65.210
2011
82.330
2012
93.570
Arunachal Pradesh's gross state domestic product was estimated at US$706 million at current
prices in 2004 and USD 1.75 billion at current prices in 2012. Agriculture primarily drives the
economy. Jhum, the local term used for shifting cultivation is being widely practised among the
tribal groups, though owing to the gradual growth of other sources of income in the recent years,
it is not being practised as prominently as it was earlier. Arunachal Pradesh has close to 61,000
square kilometres of forests, and forest products are the next most significant sector of the
economy. Among the crops grown here are rice, maize, millet, wheat, pulses, sugarcane, ginger,
and oilseeds. Arunachal is also ideal for horticulture and fruit orchards. Its major industries are
rice mills, fruit preservation and processing units, and handloom handicrafts. Sawmills and
plywood trades are prohibited under law.
Arunachal Pradesh accounts for a large percentage share of India's untapped hydroelectric
potential. In 2008, the government of Arunachal Pradesh signed numerous memorandum of
understanding with various companies planning some 42 hydroelectric schemes that will produce
electricity in excess of 27,000 MW. Construction of the Upper Siang Hydroelectric Project,
which is expected to generate between 10,000 to 12,000 MW, began in April 2009.
Tourism
The state, on account of its unrivalled aesthetics and diverse cultural heritage possesses a great
tourism potential. Popular tourist attractions include Tawang (a town with a Buddhist monastery)
at 3000 m elevation, Ziro (which holds cultural festivals),Basar, the Namdapha tiger project in
Changlang district and Sela lake near Bomdila with its bamboo bridges overhanging the river.
Religious places of interest include Malinithan in Lekhabali, Rukhmininagar near Roing (the
place as per the popular Hindu mythology, Rukmini, Lord Krishna's wife, said to have lived),
and Parshuram Kund in Lohit district as Puranas is the lake where sage Parshuram washed away
his sins, The Ganga lake(Gyaker sinyi or Gekar Sinyi)and various other tourist hot spots.
The state provides abundant scope for angling, boating, rafting, trekking and hiking. Rafting and
trekking are common activities. Some suggested routes for travel or trekking are
TezpurTipiBomdila-Tawang-se la pass
TinsukiaTezu-Parasuramkund
MargheritaMiao-Namdapha
Over the years, the Jawaharlal Nehru Museum, Itanagar has become an important tourist
destination in the state capital.
The state is rich in wildlife and has a number of wildlife sanctuaries and national parks with rare
animals, birds and plants. Perhaps the highest diversity of mammals in India is in Arunachal
Pradesh (200+ species). The diversity of birds is also very high, 700+ and is second only to
Assam.
Languages
Modern-day Arunachal Pradesh is one of the linguistically richest and most diverse regions in all
of Asia, being home to at least 30 and possibly as many as 50 distinct languages in addition to
innumerable dialects and subdialects thereof. Boundaries between languages very often correlate
with tribal divisionsfor example, Apatani and Nyishi are tribally and linguistically distinct
but shifts in tribal identity and alignment over time have also ensured that a certain amount of
complication enters into the picturefor example, Galo is and has seemingly always been
linguistically distinct from Adi, whereas the earlier tribal alignment of Galo with Adi (i.e., "Adi
Gallong") has only recently been essentially dissolved Apatani tribal women
The vast majority of languages indigenous to modern-day Arunachal Pradesh belong to the
Tibeto-Burman language family. The majority of these in turn belong to a single branch of
Tibeto-Burman, namely Tani.
Almost all Tani languages are indigenous to central Arunachal Pradesh, including (moving from
west to east) Nyishi/Nishi, Apatani, Bangni, Tagin, Hill Miri, Galo, Bokar, Lower Adi (Padam,
Pasi, Minyong, and Komkar), Upper Adi (Bori (ADI), Aashing, Shimong, Karko and Milang;).
Only Mising, among Tani languages, is primarily spoken outside Arunachal Pradesh in modernday Assam, while a handful of northern Tani languages including Bangni and Bokar are spoken
in small numbers in Tibet.
To the east of the Tani area lie three virtually undescribed and highly endangered languages of
the "Mishmi" group of Tibeto-Burman, Idu, Digaru and Miju. A number of speakers of these
languages are also found in Tibet. The relationships of these languages, both amongst one
another and to other area languages, are as yet uncertain. Further south, one finds the Singpho
(Kachin) language, which is primarily spoken by large populations in Burma, and the Nocte and
Wancho languages, which show affiliations to certain "Naga" languages spoken to the south in
modern-day Nagaland.
To the west and north of the Tani area are found at least one and possibly as many as four Bodic
languages, including Dakpa and Tshangla; within modern-day India, these languages go by the
cognate but, in usage, distinct designations Monpa and Memba. Most speakers of these
languages or closely related Bodic languages are found in neighbouring Bhutan and Tibet, and
Monpa and Memba populations remain closely adjacent to these border regions.
Between the Bodic and Tani areas lie a large number of almost completely undescribed and
unclassified languages, which, speculatively considered Tibeto-Burman, exhibit many unique
structural and lexical properties that probably reflect both a long history in the region and a
complex history of language contact with neighbouring populations. Among them are
Sherdukpen, Bugun, Aka/Hruso, Koro, Miji, Bangru and Puroik/Sulung. The high linguistic
significance these languages is belied by the extreme paucity of documentation and description
of them, even in view of their highly endangered status. Puroik, in particular, is perhaps one of
the most culturally and linguistically unique and significant populations in all of Asia from protohistorical and anthropological-linguistic perspectives, and yet virtually no information of any real
reliability regarding their culture or language can be found in print.
Finally, there is an unknown number of Tibeto-Burman languages of Nepal-area origin spoken in
modern-day Arunachal Pradesh, including Gurung and Tamang; not classified as "tribal" in the
Arunachali context, such languages generally go unrecognised, while their speakers are largely
viewed as itinerant "Nepalis". An unknown number of Tibetan dialects are similarly spoken by
recent migrants from Tibet, although they are not generally recognised or classified as tribal or
indigenous.
Outside of Tibeto-Burman, one finds in Arunachal Pradesh a single representative of the Tai
language family, namely the Khamti language, which is closely affiliated to the Shan dialects of
northern Burma; seemingly, Khamti is a recent arrival in Arunachal Pradesh whose presence
dates from 18th and/or early 19th-century migrations from northern Burma. In addition to these
non-Indo-European languages, the Indo-European languages Assamese, Bengali, English, Nepali
and especially Hindi are making strong inroads into Arunachal Pradesh. Primarily as a result of
the primary education systemin which classes are generally taught by Hindi-speaking
immigrant teachers from Bihar and other Hindi-speaking parts of northern Indiaa large and
growing section of the population now speaks a semi-creolized variety of Hindi as its mother
tongue. Despite, or perhaps because of, the linguistic diversity of the region, English is the only
official language recognised in the state.
Demographics
Arunachal Pradesh can be roughly divided into a set of semi-distinct cultural spheres, on the
basis of tribal identity, language, religion and material culture: the Tibetic area bordering Bhutan
in the west, the Tani area in the centre of the state, the Mishmi area to the east of the Tani area,
the Tai/Singpho/Tangsa area bordering Burma, and the "Naga" area to the south, which also
borders Burma. In between there are transition zones, such as the Aka/Hruso/Miji/Sherdukpen
area, which provides a "buffer" of sorts between the Tibetic Buddhist tribes and the animist Tani
hill tribes. In addition, there are isolated peoples scattered throughout the state, such as the
Sulung.
Within each of these cultural spheres, one finds populations of related tribes speaking related
languages and sharing similar traditions. In the Tibetic area, one finds large numbers of Monpa
tribespeople, with several subtribes speaking closely related but mutually incomprehensible
languages, and also large numbers of Tibetan refugees. Within the Tani area, major tribes include
the Nishi, which many people have recently come to apply to encompass Bangni, Tagin, and
even Hills Miri. Apatani also live among the Nishi, but are distinct. In the centre, one finds
predominantly Galo people, with the major sub-groups of Lare and Pugo among others,
extending to the Ramo and Pailibo areas (which are close in many ways to Galo). In the east, one
finds the Adi with many subtribes including Padam, Pasi, Minyong and Bokar, among others.
Milang, while also falling within the general "Adi" sphere, are in many ways quite distinct.
Moving east, the Idu, Miju and Digaru make up the "Mishmi" cultural-linguistic area, which may
or may not form a coherent historical grouping.
Moving southeast, the Tai Khamti are linguistically distinct from their neighbours and culturally
distinct from the majority of other Arunachali tribes. They follow the Theravad sect of
Buddhism. They also exhibit considerable convergence with the Singpho and Tangsa tribes of the
same area, all of which are also found in Burma.Besides, the Nocte and Wancho exhibit cultural
and possibly also linguistic affinities to the tribes of Nagaland, which they border. Finally,The
Deori tribe is also a major community of the state, with their own distinctive identity. The Deoris
are one of the only Arunachal Pradesh tribes in the historical recordswhich shows they are
among the first ethnic groups to inhabit the Himalayas of the districts of Dibang Valley and
Lohit, before the arrival of other many tribes in the state between 1600AD - 1900AD . The ruins
of the town of Bhismaknagar and Taameshwari temple are documented by ASI to give a light
about the history of Deori people.
In addition, there are large numbers of migrants from diverse areas of India and Bangladesh,
who, while legally not entitled to settle permanently, in practice stay indefinitely, progressively
altering the traditional demographic makeup of the state. Finally, populations of "Nepalis" (in
fact, usually Tibeto-Burman tribespeople whose tribes predominate in areas of Nepal, but who do
not have tribal status in India) and Chakmas are distributed in different areas of the state
(although reliable figures are hard to come by).
Buddhism is practised by 13% of the population. Shown here is a statue of the Buddha in
Tawang, Arunachal Pradesh.
Literacy has risen in official figures to 66.95% in 2011 from 54.74% in 2001. The literate
population is said to number 789,943. The number of literate males is 454,532 (73.69%) and the
number of literate females is 335,411 (59.57%).
An uncertain but relatively large percentage of Arunachal's population are animist, and follow
shamanistic-animistic religious traditions such as Donyi-Polo (in the Tani area) and Rangfrah
(further east). A small number of Arunachali peoples have traditionally identified as Hindus,
although the number is growing as animist traditions are merged with Hindu traditions. Tibetan
Buddhism predominates in the districts of Tawang, West Kameng, and isolated regions adjacent
to Tibet. Theravada Buddhism is practised by groups living near the Burmese border. Around
19% of the population are followers of the Christian faith, and this percentage is probably
growing due to Christian missionary activities in the area.
According to the 2001 Indian Census, the religions of Arunachal Pradesh break down as follows:
Religion
Hinduism
34.6%
30.7%
Christianity
18.7%
Buddhism
13.0%
Islam
1.9%
Sikhism
0.1%
Jainism
0.1%
A law has been enacted to protect the indigenous religions (e.g., Donyi-Poloism, Buddhism) in
Arunanchal Pradesh against the spread of other religions, though no comparable law exists to
protect the other religions.
Out of the 705,158 tribals living in Arunachal, 333,102 are Animist (47.24%), 186,617 are
Christian (26.46%), 92,577 are Hindu (13.13%), and 82,634 are Buddhist (11.72%).
Out of the 101 recognised tribes, 37 have an animist majority (Nissi, Adi Gallong, Tagin, Adi
Minyong, Adi, Apatani.etc.), 23 have a Christian majority (Wancho,Mossang Tangsa, Bori,
Yobin.etc.), 15 have a Hindu majority (Mishmi, Mishing/Miri, Deori, Aka, Longchang
Tangsa.etc.) and 17 have a Buddhist majority (Monpa, Khampti, Tawang Monpa, Momba,
Singpho, Sherdukpen.etc.). The remaining eight tribes are multi-faith, i.e., they do not have a
dominant religion (Nocte, Tangsa, Naga.etc.).
Transport Air
Itanagar Airport, a Greenfield project serving Itanagar is being planned at Holongi at a cost of
Rs. 6.50 billion. The existing state owned Daporijo Airport, Ziro Airport, Along Airport, Tezu
Airport and Pasighat Airport are small and are not in operation. The government has proposed to
operationalise these airports. Before the state was connected by roads, these airstrips were
originally used for the transportation of food.
Roads
Arunachal Pradesh has two highways: the 336 km National Highway 52, completed in 1998,
which connects Jonai with Dirak, and another highway, which connects Tezpur in Assam with
Tawang. As of 2007, every village has been connected by road thanks to funding provided by the
central government. Every small town has its own bus station and daily bus services are
available. All places are connected to Assam, which has increased trading activity. An additional
National Highway is being constructed following the Stillwell Ledo Road, which connects Ledo
in Assam to Jairampur in Arunachal. Work on the ambitious 2,400 km two-lane Trans-Arunachal
Highway Project announced by Prime Minister Manmohan Singh on 31 January 2008 on his
maiden visit to the state, was scheduled to be completed by 201516 but now due to political and
social reasons it may take another decade.
In 2014, two major highways were proposed to be built in the state: East-West Industrial
Corridor Highway, Arunachal Pradesh in the lower foot hills of the state and 2,000-kilometrelong (1,200 mi) Mago-Thingbu to Vijaynagar Arunachal Pradesh Frontier Highway along the
McMahon Line, alignment map of which can be seen here and here.
Railway
Arunachal Pradesh got its first railway line in late 2013 when the new link line from Harmuti on
the main Rangpara North-Murkong Selak railway line to Naharlagun in Arunachal Pradesh is
commissioned. The construction of the 33 km long 1,676 mm (5 ft 6 in) broad gauge railway link
was completed in 2012, and the link will become operational when the gauge conversion of the
main line under Project Unigauge is commissioned.
The state capital Itanagar was added to the Indian railway map thru newly built 20-km HarmutiNaharlagun railway line on 12 April 2014 when the train from Dekargaon in Assam with 10
passenger compartments and 2 goods compartments has reached Naharlagun (suburb of Itanagar)
with a distance of 181 km.
Education
The state government is expanding the relatively underdeveloped education system with the
assistance of NGOs like Vivekananda Kendra, leading to a sharp improvement in the state's
literacy rate. The main universities are the Rajiv Gandhi University (formerly known as
Arunachal University) and Himalayan University as well, together with nine affiliated
Government Colleges as well as four private colleges.
The first college, Jawaharlal Nehru College, Pasighat, was established in 1964. There is also a
deemed university, the North Eastern Regional Institute of Science and Technology as well as the
National Institute of Technology, Arunachal Pradesh, established on 18 August 2010, is located
in Yupia (headquarter of Itanagar).
NERIST plays an important role in technical and management higher education. The directorate
of technical education conducts examinations yearly so that students who qualify can continue
on to higher studies in other states.
There are also trust institutes like Pali Vidyapith run by Buddhists. They teach Pali and Khamti
scripts in addition to typical education subjects. Khamti is the only tribe in Arunachal Pradesh
that has its own script. Libraries of scriptures are in a number of places in Lohit district, the
largest one being in Chowkham.
The state has two polytechnic institutes: Rajiv Gandhi Government Polytechnic in Itanagar
established in 2002 and Tomi Polytechnic College in Basar established in 2006. There is one law
college called Arunachal Law Academy at Itanagar. The College of Horticulture and Forestry is
affiliated to the Central Agriculture University, Imphal.
State symbols
State
State Bird State Flower
Animal
Hornbill Foxtail Orchid
Gayal
State Tree
Hollong
role in fulfillment of Socio-economy objectives but also offer an excellent opportunities for the
industrial self employment and is an ideal answer to the problem like un-employment and proper
exploitation of available resources.
The aim and objective of the department of industries in the state is to promote the industrial
activities in the state and thereby to provide employment opportunities to the rural and urban and
to improve the economic conditions of the people. At present, there are 05 District Industries
Centres and 08 Sub- District Industries Centres in the state and the activities looking after these
centers are summaraised below:The District Industries Centres(DICs) and Sub-District Industries Centres(Sub-DICs) play a
prominent role for the industrial development of SSI, Tiny and Village Industries. This is an
institution at the district level which extend all possible help and guidance to the prospective
entrepreneurs for taking up of various industrial ventures in the district. Besides, these Centres
offer all facilities to artsians, entrepreneurs and support them with maximum effort under single
roof.
These Institutions are providing services like identification of suitable schemes, preparation of
project report, arrangement for providing required plant and machineries and raw-material for
entrepreneurs and marketing opportunities. Beside, assisting the entrepreneurs to avail
themselves a series of package incentives and familities provided by both Central and State
Govt. towards the repaid industrialization in the State. In addition to above, the DICs and SubDICs are not only acting as a co-ordinating agency but also maintaining close liaison with all
Development Department and Financial Institutions in providing various assistance to the
prospective entrepreneurs.
There are two Industrial Training Institutes and one Rural Industries Development Centre are
functioning in the State technical manpower in the State. Besides, these Institutes are also
helping the local youth to generate self employment.
The Industrial Policy, 2008 of Arunachal Pradesh is formulated to
achieve the following objectives:
2.1 To create an investment-friendly environment in the State for industrial growth in the private/
joint venture / cooperative sectors for sustainable economic development of Arunachal Pradesh.
2.2 To generate employmentopportunities in the State.
2.3 To make Arunachal Pradesh a preferred destination for outside investors.
2.4 To encourage local entrepreneurs to set up enterprises based on locally available raw
materials.
2.5 To promote export oriented industrial units.
2.6 To take steps to promote hand loom and handicrafts.
2.7 To promote local investors through joint ventures with outside investors.
2.8 To encourage industrial unitsproducing high value - low volume products.
2.9 To ensure fast track clearance of industrial proposals.
3. Thrust Areas:
The State Government has identified the following industries as thrust areas, which will be
eligible for various incentives:
3.1 Industries based on agricultural, horticultural and plantation produce.
3.2 Industries based on non-timber forest produce: bamboo, cane (rattan), medicinal plants /
herbs, aromatic grass, tea, coffee etc.
3.3 Industries based on locally available raw materials except timber.
3.4 Textiles (handlooms and power looms), Handicrafts and Sericulture
3.5 Electronics and IT based Enterprises.
3.6 Mineral Based Industries ( eg. Ferro-alloys, Cement Plant etc.).
3.7 Facilitation and Development of Industrial Infrastructure including Power, Communications
etc. under Public Private Partnership (PPP).
3.8 Food Processing Industries.
3.9 Engineering and Allied Industries (Rolling Mill, Steel etc.).
3.10 Tourism (tourism infrastructureincluding resorts, hotels, restaurants etc.). (The thrust areas
mentioned above will be reviewed periodically to include other sectors of
industrial activities from time to time).
4. Development of Infrastructure:
4.1 The State Government shall make special efforts to create proper infrastructure by promoting
establishment of Industrial Estates, Industrial Growth Centres, Integrated Infrastructure
Development Centres, Small Industries Cluster Development, Export Promotion
Industrial Parks, Export Promotion Zones, Special Economic Zone (SEZ), Food Parks;
strengthening of existing Industrial Estates, Border Trade Centres, Industrial Cluster
Development etc,.
5. Period and extent of Equity holding / Ownership:
5.1 Entrepreneur(s)/ a group of entrepreneurs/ consortium of industries will be allowed cent
percent equity holding / ownership of their industrial unit(s)/enterprises for a period of 50 years.
After the end of 50 years, the State Government reserves the right to review and
modify equity holding/ownership on mutually agreed terms and conditions.
6. Period of Land lease:
6.1 Entrepreneurs/ Investors shall beallowed to hold the land on lease for a period of 50 years on
a predetermined lease rent. The consideration for lease of land may be in the form of annual or
lump sum payments or equity participation. After the expiry of lease period, the State
Government may renew the lease period further on mutually agreed terms and conditions.
7. Sales Tax/VAT Exemption to eligible industrial units:
7.1 State Government shall provide 99% Sales Tax (VAT) / Entry Tax exemption to eligible
industrial unitson import of actual raw materials, machineries and equipments into Aruna
chal Pradesh as also on sale of finished goods in the State for a period of 7 years from the date of
commencement of commercial production.
8. Trading License:
8.1 At present, trading licenses are issued only to indigenous local traders. The present policy
will continue to hold good for small scale industries/enterprises. However, under this policy the
trading license will be issued to all entrepreneurs including outside investors for the
industries/ enterprises which involve investments of minimum Rs 5.00 Crore in plant and
machineries, whereas in case of service sector the minimum investment on equipments should
not be less than Rs.2.00 Crore to qualify for obtaining trading license.
9. The State Fiscal Incentives:
9.1 Price Preference: State Government Departments and other state Government controlled
bodies and organizations, while making purchases will give price preference to the products
manufactured by registered Micro and Small Enterprises. Other things being equal they
will be given a price preference in contract bids as indicated below:
Type of Industries
Price preference rates
(i)
Cooperative Ventures 7.5 %
(ii)
Cottage, Micro and Small Enterprises 7.5 %
9.2 Purchase Preference: State Government Departments and other State Government controlled
bodies and organizations shall give preference to the registered Units/ Enterpri
ses of the State while purchasing from the products manufactured by them.
9.3 Subsidy on cost of preparation of Feasible Project Report (FPR): An enterprise would be
eligible for subsidy on payment made towards preparation of project report to
the professional Consultant/Agency on the condition that the project report should be approved
and sanctioned by the Financial Institution /Commercial Bank in a ceiling
limit as prescribed below:
a) Micro Sector: 90% of the cost but not more than Rs. 9000/b) Small Sector: 75 % of the costbut not more than Rs. 25,000/c) Medium/Large Sector: 50% of the cost but not more than Rs.1, 00,000/9.4 Power Subsidy: The power subsidy shall be regulated under State Power Policy and NEIIPP
2007.
9.5 Incentive for Quality Control: The Department of Industries shall be the Nodal Department
for quality control of all industrial products in the state and for the products notified by the
union government from time to time. To maintain quality of the products
manufactured by the industrial units in the State, the State Government shall subsidize
the cost of quality testing equipments procured by the industries from recognized firms by 50%
of the cost of equipments. Besides, the State Government shall also reimburse 100 % cost of the
tests incurred by the micro and small enterprises /industries with a ceiling limit of
Rs.50,000/- only. Registration fee and Annual fee with the Bureau of Indian Standards etc. will
be reimbursed in full for the first five years.
9.6 Exemption of Stamp Duty: Approved industrial units / enterprises projects will be exempted
from payment of Stamp Duty upto 80 percent of the applicable amount in execution of deeds for
a period of 5 years.
9.7 Special Incentives for Food Processing Industries: Special incentives will be provided to
eligible Food Processing Units as additional State Capital Investment Subsidy @ 20 % subject to
a ceiling of Rs.25.00 lakhs.
9.8 PRIORITY CLEARANCE FOR SETTING UP OF LARGE / HEAVY ENTERPRISES
The State Govt. favours setting upof eligible large and heavy enterprises particularly those ut
ilizing locally available natural resources. Accordingly, the State Govt. will ensure time bound
mandatory clearances prescribed under various statutes.
9.9 Liberalized Licensing Policy : There will be no licensing requirements for industry save as
may be provided by any law or Government policy.
9.10 Institutional Credit Facilities : The financial institutions' under the control of the State
Government will be revamped and the District Industries Centers and financial institutions will
work in tandem to ensure smooth flow of credit to new projects, existing industrial units for
modernisation/ expansion/ diversification, village industries and rural artisans.
10. Enterprise and Skill Development:
10.1 The State Government will make all out efforts to develop entrepreneurship and capacity
building development of local people to meet the technical and managerial needs of the
industries. To achieve this goal the State Government will draw up a comprehensive skill
upgradation programmes for ensuring that local personnel/workers gain the required skill to meet
the skilled manpower needs of the industries in collaboration and consultation
with various training and educational institutions. With this objective the existing Industrial
Training Institutes will be upgraded into a Centre of Excellence.
11. State Level Empowered Committee: A State Level Industrial Empowered Committee headed
by the Chief Secretary will be constituted, which will comprise the Commissioners/ Secretaries
of the concerned administrative department and representatives from banking and financial
institutions as members for smooth passage of various clearances through a Single Window
Clearance System.
12. District Level Advisory Committee: A District Level Industrial Advisory Committee headed
by Deputy Commissioner will be constituted in each district of the state to facilitate and augment
the functioning of the District Industries Centre with a view to accelerate the Single Window
Clearance at district level.
13. Strengthening of District Industries Centres (DICs): The state Government will strengthen
and modernise the DICs. The DIC will be armed with Udyog Sahayak Cell to guide the
entrepreneurs and helping them in selection of product, preparation of project report and
obtaining credit for the project. A data bank covering all aspects of information sought by
investors will also be maintained in DlCs.
14. Public Sector Policy: The State Government shall graduallyvacate economic space for the
private and cooperative sectors and the public and state sectors will engage themselves in
economic/ commercial activities only in absence of private and cooperative enterprises.
15. Filling of Entrepreneur Memorandum (EM): The authority for registration/filling of EM shall
be regulated as per the provisions of Micro, Small and Medium Enterprises Development Act
2006. In case of Micro and Small Enterprises, the DIC will have the authority for filling ofEM
and its approval. However, in order to ensure systematic growth of enterprises in the state, in
case of medium enterprise, the Directorate of Industries will have the authority to grant approval
of
the EM on recommendation of the concern DIC.
Trade
2005-2006
2006-2007
2007-2008
2008-2009
2009 10
2010-11
(Apr-Sept)
Export
130.20
184.18
265.65
393.67
228.91
82.3
Import
289.34
768.70
1,639.55
1,120.73
907.35
268.68
Total Trade
419.55
952.88
1,905.20
1,514.40
1,136.26
350.98
Year
machinery, iron & steel, electronic machinery appliances, general industrial machinery, scientific
control equipment, non-ferrous metals, telecom & equipment. The Indian importers have also
shown interest in sourcing Norwegian products and services, especially those linked to deep offshore, shipping, hydroelectricity, metallurgy, telecommunications equipment and select areas of
IT.
Investments:
Cumulative FDI inflows (including equity, re-invested earnings & other capital from April
2000 to March 2011) were US$ 194.81 billion. (Data on re-invested earnings an dother capital
is available only from April 2000, and is estimated by RBI, on an average basis, based upon data
for the previous two years)
Top sectors in India that attracted FDI equity inflows (from April 2000 to March 2011)
from NORWAY, are:
_ Chemicals (Other Than Fertilizers) (45%)
_ Electrical Equipments (13%)
_ Electronics (7%)
_ Drugs & Pharmaceuticals (7%)
_ Consultancy Services (4%)
Some of the Norwegian companies in India areTelenor, Aker Kvaerner,Fred Olsen, NCC international, DNV, Frontier Drilling AS, Dynea AS,
Maritime Hydraulics (part of Aker Kvaerner), Hydra lift, Team Tec, Air products.
Some of the Indian companies in Norway:
Aban of Chennai acquiring full control of Sinvest, Wipro- rendering IT services in Norway since
1998, Reliance Industries Limited, Tata Consultancy Services (TCS) -providing services and
solutions for Norwegian customers for close to 10 years, IBM-helping Ringnes manage shipping
for nearly half a billion liters of beverages Annually.