Académique Documents
Professionnel Documents
Culture Documents
Chapter 1
INTRODUCTION
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1.Introduction
Where money from one country is exchanged for that of another. The
system by which one currency is exchanged for another; enables
international transactions to take place. The Indian foreign exchange
reserve position continues to be buoyant with reserves standing at
US$1,35,658 million in the week ending Feb 25,2005.
Foreign currency assets were US $ 129844 million, US $ 2,692 higher than
previous week's figure. Compared to their last year figure this variation is
of the amount US $ 22,699 million, RBI weekly statement reported.
Exchange reserves have continued to rise for over some months except for
week ended Feb 5, 2005, when it fell marginally to Us $ 1,28, 914 million
from previous week's US $ 1,29,720 million .
The first nomad, who wandered with his movable dwelling in search of
food and shelter from one place to another, must have been struck by the
variations of ecology. This must have been a pleasant experience for him.
The shift from unintended pleasure out of travel to traveling exclusively for
pleasure constitutes the history of tourism, which is closely related to
man’s economic growth, cultural and political development. Once the man
had settled on the land or found a place under the sun, which he called
home, movement from that to any other place brought out the meaning of
travel into the open.
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The travel and tourism sector creates more jobs per million rupees of
investment than any other sector of the economy and is capable of
providing employment to a wide spectrum of seekers from the unskilled to
the specialized, even in the remote parts of the country.
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Chapter 2
World Tourism
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2. World Tourism
There has been a global tourism boom in recent times. International tourism
has been performing better than world trade. Tourism receipts have
registered a higher growth than that of world export in services and
merchandise exports. The world tourist traffic increased by 3 per cent
during 1997 and the regions which benefited the most were Africa with an
increase of 9.2 per cent and South Asia with a growth of about 4.9 per cent.
It is projected that the international tourist traffic will increase to about
1602 million by registering a growth of about 4.3 per cent during the period
upto 2020. The South Asia Region including India is expected to record a
higher growth of 6.1 per cent.
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The World Tourism Organisation, the apex body has tourism few years back
predicted that US$ 2000 billion will be generated by the industry within the
year 2020 (Bezbarua, 1999) . It has analysed the emerging trends and
factors, which will influence the future growth pattern of the industry.
Some of the important observations of WTO are summarized below.
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South Asia will grow at a rate of 6.1% per annum during the
period but its share will grow only up to 1.2% from the present
0.7%.
Chapter 3
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From the smoky mangroves of the Sunderbans to the steaming Thar Desert,
sizzling cities like Mumbai and Delhi to the scintillating villages of
Khajuraho and Hampi, from the heights of the Himalayas to the deep blue
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waters around the Andamans, India is a travel haven – a tour package that
frustrates and delights, as demanding as it is rewarding. It demands that the
traveller be prepared for its own strange forms of tourism offerings - the
crowds at Pushkar, for pushy mendicants at Haridwar, for high
commercialism at spiritual retreats. But equally, it means that he be
prepared for an overwhelming warmth in the people, ease of conversation,
and to be stunned into speechlessness by the beauty, sometimes the
manmade and often the natural.
India is a country known for its lavish treatment to all visitors, no matter
where they come from. Its visitor-friendly traditions, varied life styles and
cultural heritage and colourful fairs and festivals held abiding attractions
for the tourists. The other attractions include beautiful beaches, forests and
wild life and landscapes for eco-tourism, snow, river and mountain peaks
for adventure tourism, technological parks and science museums for science
tourism; centres of pilgrimage for spiritual tourism; heritage trains and
hotels for heritage tourism. Yoga, ayurveda and natural health resorts also
attract tourists.
Travel and tourism is the second highest foreign exchange earner for
India, and the government has given organisations in this industry
export house status. The industry is waking up to the potential of
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This sector is directly and indirectly linked to many other sectors in the
economy. A growth in tourism industry affects industries like handicrafts,
handlooms, transportation (mainly aviation), real estate (or infrastructure)
and many more. One of the major sectors to which tourism is linked to is
Real Estate. Both these sectors act complementary sectors to each other.
More the number of tourist arrivals, more is the requirement if better
infrastructure, hotels, restaurants, houses etc. The point to be noted over
here is that this real sector is not a stand alone sector. It is further linked to
more than 200 different sectors like cement, steel, glass, electrical, water
supply, carpentry, transportation and many more.
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Chapter 4
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Although global recession and the September 11, 2001, events are
estimated to have resulted in a temporary decline in travel and tourism
demand in 2001-02, international and domestic tourism is expected to boom
over the next two decades. The World Travel and Tourism Council (WTTC)
estimates a 4.5 percent per annum increase in the total amount of travel and
tourism economic activity between 2003 and 2012. This is largely
attributed to a rise in global wealth, liberalization of international airspace,
cheaper flights and the use of the Internet as a travel tool. The earnings
from tourism have made it one if the worlds largest industries and the
fastest growing sectors of global trade accounting for 10.7% of global gross
domestic product(GDP), 12.8% of global exports, 8.2% of global
employment (0r one in every 12.2 jobs). And 9.4 % of global capital
investment.
Tourism in the least developed countries is growing faster than the world
average, holding the promise of prosperity for many; International tourist
arrivals worldwide reached 698 million in 2000, generating $595 billion
revenues. International tourism flows are expected to reach 1.5 billion by
2020 and revenue estimated to cross $2000 billion. Today, only 3.5 percent
of the world population travels internationally but the number if Asian,
particularly Chinese. Tourist is predicted to grow enormously as the region
becomes more integrated with the global economy.
The scale of world domestic tourism, on the other hand, exceeds world
international tourism by a ratio of 10:1. In India, for every international
tourist, there are 80 domestic tourists. Domestic tourism can form the basis
of a viable and sustainable tourism industry in India.
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Chapter 5
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The increase in the number if people with lots of money but little
leisure time has resulted in a growing emphasis on rest and
relaxation, and ‘ w ellness’ and ‘health’ holidays.
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Chapter 6
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The WTTC has identified India as one of the world’s foremost tourist
growth centres in coming decade. After Turkey, India is expected to
achieve the fastest growth of the total amount of economic activity likely
to be generated by travel and tourism, at 9.7 percent over the next 10 years.
Also, the largest employment creation in China is expected to take place in
India over the same period. The growth in ‘visitor exports’ or spending by
international tourists, is likely to be fastest in India at 14.3 percent per
annum over the next decade. On the whole, the WTTC forecast for India is
promising, subject to key policy issues that affect the growth of the sector
being addressed.
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Malaysia, Indonesia, Dubai and the Maldives. Since 1995, India’s share of
the world market has remained virtually stagnant at 0.38 percent, while
domestic tourism has grown at a phenomenal rate and India now accounts
for 4.6 percent of domestic tourism worldwide. In terms of tourism
receipts, India has shown relatively buoyancy because handicrafts items
and particularly in diamonds. The Tenth Plan visualizes a mutually
supportive role of tourism and handicrafts by encouraging haats and
shilpgrams and recognizing shopping as an integral part of tourism
experience to promote the ‘Made in India’ brand.
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Chapter 7
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India receives the largest number of overseas tourists from the United
Kingdom, which is its largest source of market, followed by the United
States, Sri Lanka, France, Germany, Canada, Japan, Australia and
Singapore. Of the tourists coming to India. 27.5 percent are in the age
group of 35-44 years, 23.4 percent in the age group of 25-35 years and 20.8
percent in the age group of 45-54 years. Women constitute only 30.5
percent of India’s total international arrivals. Repeat visitors account for
44.9 percent of the overseas visitors. A substantial number of these may be
non-resident Indians, as hotel reservations do not correspond to the number
of international arrivals in the country. The average length if stay of
foreign tourists in the country in 1998 was 31.2 days. Domestic tourism, on
the other hand, is largely pilgrimage-oriented and requires improvement in
travel facilities and pilgrim destinations.
Fig 7.1:- Top Ten International Markets for India During 2004
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Chapter 8
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Domestic Tourism
8. Domestic Tourism
The potential of domestic tourism has grown substantially during the last
few years. As per the figures reported by the State Governments, the
domestic tourist visits in the accommodation establishments during 1999
are roughly estimated to be 176 million. An important feature of the
domestic tourism sector is its contribution to national integration and
creation of a harmonious social and cultural environment.
The Committee notes that plan allocation for Domestic campaign during
1999-2000 and 2000-2001 were decreased from Rs.4.50 crores to Rs.3.50
crores and from Rs.3.00 crores to Rs.2.00 crores respectively at the RE
stage. Now during 2001-2002 (BE), Rs.3.00 crores have been allocated for
Domestic Campaign (including fairs and festivals and craft Melas).
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When asked for the reasons for reduction of funds for domestic tourism at
the RE stage, the Department of Tourism stated that the same was reduced
on account of the additional expenditure envisaged for the Pacific Asia
Travel Association (PATA) conference 2001. When asked why proper
attention has not been by paid to the domestic campaign, the Department of
Tourism have replied that the Department is paying due attention to the
Domestic Campaign within the available resources also through release of
advertisements in the local media, celebration of local festivals in different
states and special exhibitions, etc. The amount allocated during 2000-
2001 was allocated for launching of campaigns in Print Media on important
decisions and release of advertisements. The Department was to launch
promotional campaigns on important events such as Sindhu Darshan, World
Tourism Day, Baudh Mahotsav, etc. In addition to the above,
advertisements will also be released in local travel media and tourism
supplements of newspapers, journals. It has also been stated that
advertising within the country for attracting domestic tourists is mainly
done by the States.
The Committee feels that domestic tourism is the mainstay of Indian
Tourism. The Committee has been constrained to note that the Department
of Tourism has not been giving proper attention to the Domestic Campaign.
The reason stated by the Department of Tourism for reduction for
allocation at the RE stage during 2000-2001 is also not convincing. The
Committee recommends that greater attention be paid to the Domestic
Tourism because it creates more jobs than any other sector for every rupee
invested. It also creates the jobs at the local level, dispensing with the
need of migration to distant places for earning of livelihood. In fact,
tourism plays a major role in promoting large-scale employment
opportunities. Also, the vast number of domestic tourists visiting different
parts of the country every year return with a better understanding of the
people living in the different regions of the country and the geographical,
biological and cultural diversity of India.
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Multifarious fairs and festivals occur throughout the year and are an
amalgam of India’s rich cultural heritage. They have added a new
dimension to the Department of Tourism’s promotional efforts. Financial
assistance is given to various State Governments to promote specific fairs,
financial assistance is extended in the form of publicity support,
particularly for releasing advertisements, printing publicity material
relating to the fairs/festivals and also for creating semi/permanent assets.
A small proportion of the outlay is proposed for special campaigns. These
are launched from time to time based on actual needs and requirements of
the market and would mostly be in the nature of release of advertisements
in trade journals as well as in general newspapers and magazines.
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Fig 8.3 :- Share Of Top Ten States In Domestic Tourism During 2004
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Chapter 9
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The year 2004 has been a highly successful year for India tourism. The
foreign tourist arrival crossed the 3 million figure with arrivals estimated
at 3.37 million. The foreign exchange earnings also recorded an
unprecedented growth of about 38% with receipts at US$ 4810 million. The
growth of about 24% in foreign tourist arrivals during 2004 was achieved
over and above a growth of about 14% witnessed in the year 2003. This was
achieved despite the fact that the world over, there was a decline of about
1.5% in tourist arrivals in 2003, and only a growth of 10.7% in 2004. This
has been possible mainly due to the attempts made by Government to:
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For the third successive year, India witnessed a positive growth in foreign
tourist arrivals, reaching a level of 3.92 million against 3.46 million during
last year. The growth rate of 13.2% during 2005 was achieved over and
above a growth of about 26.8% witnessed during the year 2004; and that the
expected growth the world over during 2005 is estimated to be about 5-6%
only. With this growth, the share of India in world tourism, which was
hovering between 0.38% to 0.39% for number of years, is expected to be
around 0.49%.
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Chapter 10
Hotels/Accommodation.
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10. Hotels/Accommodation.
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3-Star
316 15590
2-Star
324 11391
1-Star
146 5059
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Chapter 11
Organisations Involved.
• Department of Tourism
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Others
• Institute of Hotel Management, Catering
Technology and Applied Nutrition, Bangalore
• Institute of Hotel Management, Catering
Technology and Applied Nutrition, Goa
• National Rail Museum (NRM)
• Palace on Wheels
ITDC:
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Chapter 12
For the 9 t h Plan period (1997-2002), the Planning Commission has approved
a Plan outlay of Rs. 793.75 crores for the Ministry of Tourism comprising
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Direct Budgetary Support of Rs. 485.75 crores and internal and external
resources of Rs. 308.00 crores.
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Chapter 13
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Chapter 14
The Government of India came out with its first ever policy on tourism in
1982. the policy was of a more a statement of intention than a plan for
development. It aimed at projecting India as the ultimate holiday
destination. The policy suggested granting export industry status to
tourism, developing tourist circuits, developing a marketing campaign
based in the country, and inviting private sector participation.
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The next major policy initiative came in May 1992 in the form of the
“National Action Plan for Tourism”. The action plan contained several
objectives, to increase the employment opportunities in the tourism
industry; to develop domestic tourism for the budget travelers; to preserve
the national heritage and the environment; and to diversify the Indian
Tourism product. It aimed to increase India’s share of world tourism to 1%
in a span of five years. The plan recommended the development of special
tourism areas on the lines of export processing zones, improvement of
pilgrimage centers with financial assistance from the central government,
and the setting up of a National Culinary Institute. It also suggested the
creation of a flexible system for the recognition of travel agent and tour
operators.
The eight five-year plan (1992-93 to 1996-97) spoke about attracting high-
spending tourists from Europe ant the US. It also suggested the creation of
a “master plan” bky integrating area plans with tourism development. The
other thrust areas in the plan included moving away from culture-related
tourism to holiday and leisure, adventure, wildlife, etc.
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In May 2002, the National Tourism Policy was unveiled. This was
essentially a rehash of earlier policy and plans. The 2002 policy was,
however, ambitious in the sense that it recommended positioning India as a
global brand to attract tourists in larger numbers and exploiting the vast
potential of India as a tourist destination. In the same period in the form of
“opening of the skies” was introduced with the aim of international tourist
arrivals by enhancing air seat capacity and connectivity.
The New Tourism Policy released in May 2002 has outlined the following
policy initiatives for the tourism sector:
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Concession rates on customs duty of 25% for goods that are required
for initial setting up, or for substantial expansion of hotels.
50% of profits derived by hotels, travel agents and tour operators in
foreign exchange are exempt from income tax. The remaining profits
are also exempt if reinvested in a tourism related project.
Approved hotels are entitled to import essential goods relating to the
hotel and tourism industry up to the value of 25% of the foreign
exchange earned by them in the preceding licensing year. This limit
for approved travel agents/tour operators is 10%.
Hotels located in locations other than the four major metro cities are
entitled to 30% deduction from profit, for a ten-year period.
The expenditure tax has been waived in respect of hotels located in
the hills, rural areas, places of pilgrimage or specified place of
tourist importance.
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Chapter 15
Leakages
15. Leakages
Though the tourism industry is booming and helping both Indian and world
economies to grow, there are a few downsides to this industry. A huge
seasonal employment exists in this sector. This seasonal employment is
mainly in developing countries where tourism industry is not much
developed. In these countries for a few months the tourism is low and
comparatively fewer workforces are required. In India, the months of April,
May and June are low on foreign tourist arrivals. Apart from these
employment issues, another limitation to the industry is “leakage”. The
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term Leakage means that out of the total amount of money spent on the
tourism of a country, a major part leaks out of that country (mainly
developing) to the other countries (mainly developed). This leakage occurs
when the host country wants to provide international facilities to their
tourists. This leakage can be “internal leakage” or external leakage”. Many
times the tourists’ arriving the host country demand for the goods like some
equipment, food, drinks etc. which the host country cannot provide them.
This leads to internal leakage because to fulfil the needs of tourists, the
host country has to import these goods from other countries. External
leakage occurs because; these host countries (mainly developing) might not
have enough capital to build an infrastructure to attract foreign tourists,
which calls for an investment from foreign countries (mainly developed).
Now these external investors are a part of their business and will take a
major part of there earnings. In India the leakage is around 40%, i.e. 40%
of the earnings generated by India’s tourism leaks out of the country. This
leakage is significantly high and is a cause of worry. But, compared to
other developing nations, this figure is still better. The average leakage of
developing nations is around 80%, which is very high as compared to
leakage in India. The reasons for this are the improving infrastructure of
major tourist destinations, the escalation in international standard Indian
hotels like TAJ Group of Hotels, ITC Welcome Group, Oberoi Hotels etc.
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Chapter 16
Barriers to Growth
There are several factors that are responsible for adequate growth of the
tourism sector in India. These are :
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The effective & early removal of these barriers during the tenth plan is an
essential determinant for the success of new tourism policy.
The need for a national consensus on the role & the level tourism
development in the country has been voiced repeatedly but a concerted
effort to achieve a consensus has not been made. Tourism should be limited
by state or regional boundaries if distortion in policies is to be avoided .It
us important that the consensus among all states is evolved through the
National Development Council (NDC) & the barriers to the growth of
tourism removed.
Tourism has been denied the priority it deserves over successive plan
periods because its potential as a engine of economic growth has not been
appreciated. This is visible in the low allocation of resources. Allocation to
tourism has averaged 0.16% to the total plan outlay from the third plan to
the ninth plan. In the Tenth Plan , it is likely to receive an allocation of
0.72% .According to the WTTC , India is one of the lowest spendors of
tourism-153 r d out of 160 countries , while its neighboring competitors &
China invest far more : Malaysia (5.1% ) , Nepal(5%), Indonesia (8.4%),
Maldives (15.7%) , China (3.8%) . The growing domestic & international
demand, which is set to boom, reinforces the need for higher investment.
Failure to measure up to additional investment demand for domestic
tourism is likely to lead to the over exploitation of existing facilities,
discouraging foreign investors while leading to an increase in the outflow
of high spending domestic tourists from the country.
Most state government gives scant importance to tourism even though they
virtually control the tourism product located within their boundaries. They
are responsible, inter-alia, for local infrastructure, transport system,
sanitation & hygiene, leisure & recreation, law & order, the upkeep of local
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monuments & the general well being of the tourist. Their support &
participation is essential for tourism to succeed & spread its benefits
among the host population. Their lack of interest has resulted in an
unprofessional ad hoc approach that acts as a deterrent to the growth of
tourism. The approach of the state governments need to be focused, highly
professional & result- oriented if India is to avail of the opportunity that
the currently favorable market trends have to offer.
Apart from the State Governments the private sectors plays a vital role in
the growth & development of tourism. Although the central government &
certain state governments have, from time to time, announced incentives to
involve the private sector in tourism development, the results achieved
have fallen\n short of expectations. To provide a conducive environment
for private sector investment it is important to realize that the travel &
tourism sector is adversely affected by the lack of synergy in inter-sectoral
policies. The growth of the sector requires well integrated & coordinated
policies & stability & approach. Contradictions & arbitrary changes in
policy send confused signals to the investor. Unless infirmities in policy
are expeditiously removed well before the end of the Tenth Plan period the
new tourism policy is unlikely to succeed.
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tourists from its major source markets to obtain visas on arrival. Equally
important is the behaviour of the host population. Training programmes are
required not only for hotel managers but also for tourist guides, taxi-
drivers, staff at eating places, porters etc., as the manner in which they
conduct themselves affects the tourist’s experience of the country.
Important do’s and dont’s in terms of a code of ethics need to be inculcated
among the service providers. During the Tenth Plan, the Department of
Tourism will organise capacity building programmes for service providers
through mobile training units.
A major impediment to the growth of tourism in India has been the lack of
awareness about the benefits that it can bestow upon the host population.
Unless the host population, both in the rural and urban areas, is supportive
of tourism, it cannot become a vibrant economic force. The rural sector, in
particular, has been largely ignored in tourism development and has
consequently been deprived of the benefits of employment and income
generation accruing from tourism. The Tenth Plan will seek to rectify this,
particularly in view of the world-wide interest in rural tourism. While an
awareness campaign that elicits local support for travel and tourism is
essential for the long-term growth of the sector, it is also important to
create awareness about the environmental impact of tourism by generating
respect for the carrying capacities of tourist destinations. This is
imperative as excessive exposure of ecologically fragile areas to human
interference can lead to irreparable environmental degradation. As the
demand for ecotourism is expected to grow enormously in the next decade,
it is important to have regulations in place to prevent such damage. The
local population must be convinced of the need to support such regulations
in the interest of long-term sustainability. India’s hill resorts have already
suffered seriously from a lack of concern for their carrying capacities and
the unchecked influx of tourists during the summer months. If India’s
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forest sanctuaries and pristine beaches are not to suffer the same fate,
attention will have to be paid during the Tenth Plan to obtaining regulatory
and public support for sustainability concerns.
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Chapter 17
Being the nodal agency for the development of tourism in the country, the
department of tourism needs to make greater efforts to co-ordinate and
integrate the policies of central ministries that have an impact on the
development of tourism and to mobilise state governments and the private
sector to develop unique and competitive tourism products and
destinations. Crucial decisions affecting tourism are taken by other
ministries viz. the Ministries of Finance, Home, Civil Aviation, Surface
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Chapter 18
The Tenth Plan strategy is to work towards a national consensus on the role
of tourism in national development and to focus on the removal of barriers
that hamper its growth. To make public sector investment more effective, it
is necessary to work towards the inter-sectoral convergence of policies and
programmes that could benefit tourism. The New Tourism Policy envisages
a framework, which is Government-led, private sector driven and oriented
towards community welfare, with the Government creating the legislative
framework and basic infrastructure for tourism development, the private
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sector providing the quality product and the community providing active
support. The overall vision of the development of tourism embodied in the
new policy will be achieved through five key strategic objectives. These
are:
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As air capacity available to India is woefully short during the peak travel
months, ranging from October to March, especially for the main tourism
originating regions such as North America, Western Europe and South
Asia, it is necessary to open India’s skies to increase capacity and help
enhance tourism. Additional seat capacity from the major tourism
generating destinations would significantly benefit the national economy
and provide a major impetus to tourism. Improvement in the standard of
facilities and services at the international and national airports will need to
be speeded up by employing professional manage-ment agencies and by
privatising and leasing out airports.
Product development strategy during the Tenth Plan will be related to the
special interests oftourist target markets.
• Cultural and heritage tourism will be expanded . India has a vast array
of protected monuments with 22 world heritage sites, 16 of which are
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• India has the greatest adventure tourism assets in the world in the
Himalayas and its rivers. Mountain-based adventure activities will be
developed and promoted. Regulations and certification for adventure
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• India’s most unique tourism product during the Tenth Plan will be
holistic healing and rejuvenation packages. In focussing on this, it will
capture the essence of Indian culture for international and Indian visitors
alike.
• India’s fairs and festivals , some of which are already well established
such as the Pushkar mela, the Desert Festival at Jaisalmer, the Kumbh Mela
etc. will be promoted as unique products of India. The Festivals of India
programme will be re-introduced in the top 12 future markets for India -
initially with an annual event in the United Kingdom and the United States,
to be followed by triennial events in the other markets.
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The need for physical infrastructure for tourism ranges from ports of entry
to modes of transport to destinations (airways, roadways, railways or
waterways), to urban infrastructure such as access roads, power, water
supply, sewerage and telecommunication. This underscores the need for
inter-sectoral convergence of infrastructural schemes and programmes that
could support tourist destinations.
The road network is vital for tourism as almost 70 per cent of passengers in
India travel by road. Many tourist circuits are entirely dependent on roads.
The current government plan for the road system in the country covering
both inter-state highways and improvements to rural roads directly supports
tourism development. There is urgent need to construct and improve
highways linking the 22 world heritage sites and places of tourist
significance. The Ministry of Road Transport and National Highways will
collaborate with the Ministry of Tourism in this effort.
The Indian railway system can also become an enormous asset to the
development of the tourism and hospitality industry in the country. The
railways hold a special fascination for foreign tourists who wish to travel
the country. For the vast majority of domestic tourists also, the railways is
the most affordable means of travel linking the length and breadth of the
country. Introduction of special tourist trains with pre-set itineraries and
private sector participation will be encouraged.
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products will be tapped during the Tenth Plan. As steam-hauled trains like
the Royal Orient, Buddha Parikrama, Palace-On-Wheels and Fairy Queen
are extremely popular with tourists, steam traction for special tourist
segments will be continued. Trains like the Shatabdi and the Rajdhani with
a special tourism and hospitality focus will be planned both for foreign and
domestic tourists.
India’s 7,000-km coastline and her mighty rivers will be tapped for the
promotion of cruises. Care will be taken to develop world class tourism
products. As the Ministry of Tourism’s financial assistance to the states has
not been able to have the desired impact in terms of creating of world class
tourism infrastructure, the emphasis must shift to the development of
specific travel circuits as internationally competitive destinations and the
convergence of resources and expertise for these circuits.
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Chapter 19
The tourism sector needs a national consensus on the role and place of
tourism in national development and the early removal of impediments that
have hitherto handicapped its growth. The Tenth Plan target of the creation
of 18 million jobs through tourism requires a substantial investment of Rs.
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38,800 crore at the rate of 47 jobs per one million rupees of investment,
both from the public and the private sector. The central sector outlay for
tourism during the 10th Five Year Plan is Rs. 2,900 crores, the scheme wise
break-up of which is given in the Appendix.
The success of the New Tourism Policy 2002 will be largely determined by
the success achieved on all these fronts.
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Chapter 20
‘ Before the Incredible India campaign, India was being promoted differently in
different countries, if at all. There weren’t two or three distinct images. This
campaign changed that.’
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Role of Tourism Industry in Generating Foreign Exchange
- Lavanya Anirudh,
The tourism ministry engaged the services of Ogilvy & Mather (India)
(O&M) to create a new campaign to increase the tourist inflows into the
country. The “Incredible India” campaign was launched in 2002 with a
series of television advertisement. The campaign was based on the striking
pictures and themes related to India’s cultural legacy (yoga, ayurveda),
scenic locales, etc. The aim of the campaign was to project India as a
unique opportunity for physical invigoration, mental rejuvenation, cultural
enrichment and spiritual elevation.
The campaign was rolled out on some of the major television channels
between January and March 2002.
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Role of Tourism Industry in Generating Foreign Exchange
The campaign also made exclusive use of the internet. In March 2002, the
official website of the tourism ministry ( www.tourismofindia.com ) was
redesigned to make it both more attractive and functional. Prospective
tourist could use the website to plan their trip to India. The print ad
campaign was complemented by a similar ad campaign on the internet,
which focused on specific destinations and themes. The online ad were
placed in country-specific travel websites, portals, and search engines.
Electronic newsletters and mailers were sent to people who subscribed to
the service.
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375,549 100.00
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Role of Tourism Industry in Generating Foreign Exchange
The “rural tourism” scheme had the twin objective of showcasing the
uniqueness of the arts, crafts, and heritage of rural India and helping the
rural folk benefit from tourism. In the first phase, 63 rural areas were
identified and Rs. 5 mn was allotted to each area for upgrading approach
roads, landscaping, cleaning water bodies, maintaining monuments, etc. the
ministry joined hands with Non-government Organisation (NGOs) to
provide a unique experience of rural India to discerning tourists. An
exclusive website-www.exploreruralindia.org, was also launched. Similarly
under the “Priyadarshini” scheme, the ministry made efforts to bring more
women into tourism-related areas. The ministry reportedly spend Rs.1. bn
on the Incredible India campaign in 2005.
The high standards of the campaign were acknowledged when the Indian
tourism ministry won the 2004 PATA Gold award for the “Incredible Taj”
campaign.
Media report suggested that the ministry of tourism was planning to; spend
Rs.1.5 bn on the Incredible India campaign in 2006. while around Rs.1 bn
was to be spent on overseas promotion and marketing, the remaining was to
be allocated for advertising in the print and electronic media.
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No State Tagline
1 Orissa Senic.Serene.Subline
3 Maharashtra Unlimited
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Chapter 21
Conclusion
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21. Conclusion
Indian Tourism Industry has a strong relationship with the economic growth
of the country. As GDP continues to increase, it enhances investment in
basic infrastructure like transport system, which is a vital support to
tourism in India.
Closely associated is the hotel industry in India, which has added to the
growth in Indian tourism since 2004. India has become one of the popular
tourist destinations in the world. Of course there has been the government’s
support through its “Incredible India” campaign, which showed new light to
foreign tourists. In 2005 the arrival of international tourists grew by 16%
giving boost to Indian tourism.
The Union Financial Budget 2006-07 has allocated Rs.8.5 Bn for Indian
tourism sector in the tenth Five Year Plan. Having increased the service tax
to 12% there is more expected revenue for the government.
With lot of imagination and ideas the Indian tourism sector is gathering
momentum and is set to have not only large numbers of foreign tourists but
also make a big share in the country’s Gross Domestic Product ( GDP ).
Recent statistics have revealed that during the first quarter of 2006, the
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performance of the tourism industry has been very encouraging which has
registered an 11% increase in foreign tourist arrivals.
With the given allocation to the Indian tourism industry in the budget, the
Government appears to have realized the significance of this sector in
earning valuable foreign exchange as also enabling greater employment. As
new destinations develop the tourist inflow is anticipated to increase.
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