TRAVEL AND TOURISM

G.H.PATEL POST
GRADUATE INSTITUTE
OF BUSINESS
MANAGEMENT
CONTEMPTOTARY ISSIUES
IN
MANAGEMENT
TOPIC: TRAVEL AND

TOURISM

TRAVEL AND TOURISM

SUBMITTED BY
SUBMITTED TO GOVINDA PATEL
DR. P.K PRIYAN ROLL NO: 14052
DR. D.R. DAVE
SEM I, DIV - B
(23 JANUARY,2015)

TRAVEL AND TOURISM

INRODUCTION
The Concept of Tourism has been derived from the Latin word TOMOS & Hebrew word
TORAH .
Tourism is travel for recreation, leisure, religious, family or business purposes, usually for a
limited duration. Tourism is commonly associated with international travel, but may also refer
to travel to another place within the same country. The World Tourism Organization
defines tourists as people "travelling to and staying in places outside their usual
environment for not more than one consecutive year for leisure, business and other
purposes".
Tourism has become a popular global leisure activity. Tourism can be domestic or
international, and international tourism has both incoming and outgoing implications on a
country's balance of payments. Today, tourism is a major source of income for many

TRAVEL AND TOURISM

countries, and affects the economy of both the source and host countries, in some cases
being of vital importance.
Tourism suffered as a result of a strong economic slowdown of the late-2000s recession,
between the second half of 2008 and the end of 2009, and the outbreak of the H1N1
influenza virus. It then slowly recovered, with international tourist arrivals surpassing the
milestone of 1 billion tourists globally for first time in history in 2012. International tourism
receipts (the travel item in the balance of payments) grew to US$1.03 trillion (740 billion) in
2011, corresponding to an increase in real terms of 3.8% from 2010. In 2012, China became
the largest spender in international tourism globally with US$102 billion,
surpassing Germany and United States. China and emerging markets have significantly
increased their spending over the past decade, with Russia and Brazil as noteworthy
examples.

DEFINATION
It is defined as an activity that takes place when people move to some other place for
leisure or for business and stay at least for 24 hours.

NEW TOURISM PRODUCTS

Monsoon magic - Focus on months from April to October.
Rural & village tourism -The tourism ministry is laying special emphasis on
infrastructure development in various rural destinations in India.
Medical tourism -The Indian Healthcare Delivery market is estimated at US$
18.7 billion. The industry is growing at about 13 per cent annually.

Wellness & Spa tourism Luxurious world class health spas are
mushrooming across the country.
Luxury tourism E.g. Palace on Wheels, Palaces.

Adventure tourism With emphasis on eco-tourism MICE convention centers

coming up in the metro cities.

CHANGE IN PERCEPTION
There has been a positive change in perception about the benefits of tourism in the
minds of planners, policy makers and as well as state governments in India.

TRAVEL AND TOURISM

Tourism is now being seen:

Engine of growth for the economy and a key employment generator.

Low Capital Investment in the trade.

Imports that earn foreign exchange.

Cultural revival/ regeneration.

TOURISM GROWTH IN INDIA

According to World Tourism Organization estimates, India will lead in South Asia with
8.9 million arrivals by 2020.

India is poised to emerge as the 2nd fastest growing (8.8%) tourism economy in the
world over 2005-14 according to the World Travel & Tourism

FOREIGN EARNINGS

There has been a growth of more than 13% in foreign tourist arrivals at 3.9 million during
2005, up from 3.4 million foreign tourists who visited India during previous year.
Foreign exchange earnings from foreign tourists were up by more than 20% at $5,730.86
million in 2005, up from $4,769 million earned the previous year.

PROMOTION OF TOURISM

Incredible India! :- AAMIR KHAN. (Brand Ambassador)

Gujarat Tourism :- AMITABH BACHCHAN. (B.Amb)
Kingdom of Dreams:- SHAHRUKH KHAN. (B.Amb)
Goa Tourism:- PRACHI DESAI. (B.Amb)
Kerala Tourism:- Govt. of Kerala (Incredible India!).
Rajasthan Tourism:- Govt. of Rajasthan(Incredible India!).

TRAVEL AND TOURISM

Madhya Pradesh Tourism:- Govt. of MP(Incredible India!).

Government Initiatives
Incredible India Under this program the govt create promotes India through various
integrated marketing programs.
Atithie Devo Bhava Under this program the govt create awareness among Indian people
who come in contact with the tourist.
Various Infrastructure building initiatives.
Encourage religious tourism.

MARKETING IN TOURISM

As the production and consumption experiences are inseparable, it is impossible to sample a

tourism service before purchase. Marketing of tourism is based on:
Trust
Relationship
Delivering value

TOURISM AS A SERVICE

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Intangibility

Service oriented industries like travel and tourism, strive towards converting the
intangible product into an experience that customer will value and cherish.

Variability

Offering the same quality of service each time a customer interacts with the service
marketing brand( which helps in image building).

Inseparability

Tourism is a service in the true sense, because of its unique features.

Prospective customers have to travel to the destination to experience the place; and
a trail or sampling or test drive is not possible before purchase.

MARKETING MIX TOURISM

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prod
uct

pri
ce

pla
ce

promo
tion

Physical
evidence

peo
ple

proc
ess

Product and Place

Travel companies design tour packages covering a wide range of tourist attractions
at different prices to attract diverse target segments

Promotion

Incredible India campaign

Advertisements in BAFTA, Grammy, Oscars and major European channels.

Major components of promotion

Advertising

Public relations

Publicity

Word of mouth

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Place

The world has become a global village.

In recent times the concept of place has transformed tremendously as bookings can
be made from anywhere online.

People

People in the travel and tourism industry like travel agents, tourist guides, hotel and
restaurant staff, transport personnel play an important role in brand building and
customer satisfaction.

Process

Detailed and well documented procedures for addressing every situation and service
context supported by infrastructure and IT systems provide consistent and good
quality service.

Physical Evidence

Good customer experience is extremely important for generating repeat business

and also business from new customer trough positive word-of-mouth.

TRAVEL AND TOURISM

Worlds top 10 tourism destinations

The World Tourism Organization reports the following ten countries as the most visited in terms
of the number of international travellers in 2013.

Ran
k

Country

UNWTO
Region

France

Europe

United

North

States

America

Internation

Internation

al

al

tourist

tourist

arrivals

arrivals

(2013)

(2012)

Chang

Chang

(2012

(2011

to

to

2013)

2012)

(%)

(%)

84.7 million

83.0 million

2.0

1.8

69.8 million

66.7 million

4.7

6.3

Spain

Europe

60.7 million

57.5 million

5.6

2.3

China

Asia

55.7 million

57.7 million

3.5

0.3

Italy

Europe

47.7 million

46.4 million

2.9

0.5

Turkey

Europe

37.8 million

35.7 million

5.9

3.0

Germany

Europe

31.5 million

30.4 million

3.7

7.3

Europe

31.2 million

29.3 million

6.4

0.1

Europe

28.4 million

25.7 million

10.2

13.5

United
Kingdom

Russia

TRAVEL AND TOURISM

Ran
k

10

Country

Thailand

UNWTO
Region

Asia

Internation

Internation

al

al

tourist

tourist

arrivals

arrivals

(2013)

(2012)

26.5 million

22.4 million

Chang

Chang

(2012

(2011

to

to

2013)

2012)

(%)

(%)

18.8

16.2

International tourism receipts

International tourism receipts grew to US$1.159 trillion (873 billion) in 2011,
corresponding to an increase in real terms of 5.3% from 2012. The World Tourism
Organization reports the following countries as the top ten tourism earners for the
year 2013, with the United States by far the top earner.

Ran
k

Country

United
States

UNWTO
Region

North
America

Internation

Internation

al

al

tourism

tourism

receipts

receipts

(2013)

(2012)

Chang

Chang

(2012

(2011

to

to

2013)

2012)

(%)

(%)

$139.6 billion

$126.2 billion

10.6

9.2

Spain

Europe

$60.4 billion

$56.3 billion

7.4

6.3

France

Europe

$56.1 billion

$53.6 billion

4.8

2.2

China

Asia

$51.7 billion

$50.0 billion

3.3

3.2

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Ran
k

Country

Macau,
China

UNWTO
Region

Internation

Internation

al

al

tourism

tourism

receipts

receipts

(2013)

(2012)

Chang

Chang

(2012

(2011

to

to

2013)

2012)

(%)

(%)

Asia

$51.6 billion

$43.7 billion

18.1

13.7

Europe

$43.9 billion

$41.2 billion

6.6

4.2

Italy

Thailand

Asia

$42.1 billion

$33.8 billion

24.4

24.4

Germany

Europe

$41.2 billion

$38.1 billion

8.1

1.9

Europe

$40.6 billion

$36.2 billion

12.1

3.3

Asia

$38.9 billion

$33.1 billion

17.7

16.2

United
Kingdom

Hong Kong,
China

Australia

Oceania

$30.9 billion

$31.7 billion

2.8

4.5

10

Turkey

Europe

$27.9 billion

$25.3 billion

6.8

2.4

International tourism expenditure

The World Tourism Organization reports the following countries as the top ten
biggest spenders on international tourism for the year 2013.

TRAVEL AND TOURISM

Ran
k

Country

UNWTO
Region

China

Asia

United

North

States

America

Internation

Internation

al

al

tourism

tourism

expenditure

expenditure

(2013)

(2012)

Chang
Marke

(2012

Share

to

(%)

2013)
(%)

$128.6 billion

$102.0 billion

11.1

23.8

$86.2 billion

$83.5 billion

7.4

3.3

Germany

Europe

$85.9 billion

$81.3 billion

7.4

2.3

Russia

Europe

$53.5 billion

$42.8 billion

4.6

28.9

Europe

$52.6 billion

$51.3 billion

4.5

3.5

Europe

$42.4 billion

$39.1 billion

3.7

4.9

$35.2 billion

$35.0 billion

3.0

3.2

United
Kingdom

France

Canada

Australia

Oceania

$28.4 billion

$28.0 billion

2.4

8.8

Italy

Europe

$27.0 billion

$26.4 billion

2.3

1.0

10

Brazil

$25.1 billion

$22.2 billion

2.2

12.9

North
America

South
America

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MasterCard Global Destination Cities Index

Based on air traffic, the MasterCard Global Destination Cities Index reports the
following cities as the top ten most popular destinations of tourism worldwide in
2014.

Rank

Country

UNWTO

International

Region

tourist arrivals

London

Europe

18.69 million

Bangkok

Asia

16.42 million

Paris

Europe

15.57 million

Singapore

Asia

12.47 million

Dubai

Asia

11.95 million

New York City

North America

11.81 million

Istanbul

Europe

11.60 million

Kuala Lumpur

Asia

10.81 million

Hong Kong

Asia

8.84 million

10

Seoul

Asia

8.63 million

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MasterCard reports the following cities as the top ten biggest earners on tourism worldwide in
2014.

Rank

Country

London

New York City

Paris

UNWTO

International

Region

tourists spending

Europe

$19.3 billion

North America

$18.6 billion

Europe

$17.0 billion

Singapore

Asia

$14.3 billion

Bangkok

Asia

$13.0 billion

Seoul

Asia

$11.5 billion

Barcelona

Europe

$11.2 billion

Dubai

Asia

$10.9 billion

Taipei

Asia

$10.8 billion

10

Istanbul

Europe

$9.4 billion

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CONCLUSION

Scope of tourism

Tourism in India is the largest service industry, with a contribution of 6.23% to

the National GDP and 8.78% of the total employment in India.
India witnesses more than 17.9 million annual foreign tourist arrivals and 740
million domestic tourism visits. 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. Majority of foreign
tourists come from USA and UK.

Lot of tourism places are not discovered by tourism companies, if marketed

will add to the revenue.

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BIBILIOGRAPHY
http://pib.nic.in
http://en.wikipedia.org/wiki/Travel
http://www.travelguru.com/?
ci=gl&utm_source=52009&utm_medium=cpc&utm_campaign=IN_NS_TravelGuru_B
rand_India&gclid=CIz63eGVqMMCFZaTvQodRxsAuA