TERM PAPER

OF
[Business Environment]
TOPIC – “PASTLE Analysis of tourism
industry”

SUBMITTED TO - Mr. Manish Rajput

SUBMITTED BY-

INDEX

1. Introduction of tourism industry

2. Historic Monuments

3. Types of tourism in India

4. PESTLE Analysis of tourism industry.

a. Political impact

b. Economic impact

c. Social impact

d. Technological impact

e. Legal impact

f. Environmental impact

5. Tourism Revenues and Expenditures

6. SWOT Analysis of Tourism in India

7. Conclusion

8. Bibliography
Introduction of tourism industry

Tourism is the biggest service Industry in india. It contribute 6.23% in GDP and

8.78% in total employment in India. App. 5 million foreign tourist and 527 million

domestic tourism visit in country. Indian tourism industry garneted about US $100

billon in 2008 and it is expected to increase to US $275.5 billon by 2018 and

tourism growth rate is the agency that is working for the development of tourism in

india.

According to world travel tourism council, India is becoming world largest tourism

place. world tourism council get this statement according to the 10 year growth

potential. However, india;s tourism is increasing day by day.

In 2010 common wealth games in Delhi are expected to increase tourism in india ,

Delhi.

 Tourism is one of the world's fastest growing industries at present and

hold the status of the world's no. 1 industry.

 Spending on tourism amounts to 5%-10% of total consumer, spending in a

year worldwide.

 The industry creates a job every 2.4 seconds with every one of those direct

jobs creating another 11 indirect ones.

  The tourism industry as a whole is presently estimated to earn over US$ 3.5

trillion worldwide.

 India's share of the total market is a pittance at 0.51%. The non-tourist

countries like Malaysia and Indonesia get much more tourists than India.

 India's share of the total market is a pittance at 0.51%. The non-tourist

countries like Malaysia and Indonesia get much more tourists than India.

 The Tourism industry's foreign exchange earnings in India are around $3.2

billion. Tourism is the highest foreign exchange earner if we consider the

fact that net value addition in Gems and jewellery is less than 30 %

whereas, in tourism it is more than 90 %.

Recent statistics have revealed that during the first quarter of 2006, the

performance of the tourism industry has been very encouraging which has

registered an 11% increase in foreign tourist arrivals.

India Tourism office at Tokyo won two International Awards in Tour Expo held at

Daegu in Korea for excellent tourism promotion. Indian Pavilion won the Best Booth

Design Award as well as Best Folklore Performance Award competing with major

players in tourism such as China, Japan, Thailand, Malaysia and Canada.

Delhi:

Delhi is the dil of india. It is the capital of india. There are many places in india

there are many monuments and landmarks such as the Tuhlaqabad fort,

Qutubminar, Puranaquila, Lodhi garden, Jama masjid, Humayan’s tomb, red Fort,
janter Manter, India Gate, Rashtrapati Bhavan, laxminarayen temple, Lotus Temple

and akshardhan Temple. That are the many tourism places in India.

Goa:

Goa is the smallest state in India in area. It is situated in west in India.Goa is

famous for excellent beaches, churchas, and temple. Some famous temple are

Mangneshi temple and shantadurga temple. Recently a Wax museum has also

opened in Goa.

Himachal Pradesh :

Himachal Pradesh is a beautiful hill station in india. It is famous for ancient temple

and beautiful hill station like Shimla, kullu , manali, Rohlang Pass etc. shimla is the
hub of tourist. Shimla is also the capital of Himachal Pradesh. Every year a huge

no of tourist visit in shimla and the other places of Himachal Pradesh. It is the

tourism destination. Shimla’s temperature range from 3.95 to 32.95 degree C over

the year. In winter the temperature range is between 7 to 10 degree C. and

snowfall took place in the month of Dec and Jan.

Jammu and Kashmir :

Jammu and Kashmir is famous for its beauty in world. Kasmir is Called the

paradise on earth. Jammu is famous for its landscape anciat temple, hindu shrines,

gardens. Amaranth and vishno devi is the famous shrines of himdu. More then ten

thousand of visitor visit there every year. There are some beautiful places like Dal

lake, srinager, gulmarg, mugal gardens etc.

Historic Monuments

1. The Taj Mahal: Taj Mahal is one of the world best and beautiful monuments.

It is situated in UP in Agra. It was built between 1931 and 1653. It was built

by shah Jahan in Honor of his wife. Many of tourist visit there.

 2. The Golden temple: it is situated in Amritsar in Panjab. It is most secured

place for Sikhs.

3. The Victoria terminus: it is in Mumbai. It was built by the British and is a

UNESCO world heritage site.

Types of tourism in India:

There are many types of tourism. Last decade Indian govt. decided to boost

revenues for tourism sector. There are following types of tourism in india:
1. Adventure tourism:

this is new types of tourism that is recently growing in India. It involves

exploration of remore area and engaging in various activities like In india.

Almost visitor are prefer to go trakking to place like- ladakh, Himachal

Pradesh and jammu Kashmir.

2. A Wild life tourism:

India’s app. 60% is covered by forest. There are some beautiful and exotic

species of wildlife. There are many places where a large no of foreign tourist

can go for wildlife tourism in india. The main places are sariska wildwide

sanctuary, Ghana national park, Corbett national park.

3. Medical tourism:

Tourists from all over the world have been thronging india to avail

themselves of cost –effective but superior quality healthcare in terms of

surgical procedures and general medical attention. There are several

medical institutes in the country that cater to foreign patients and import top

quality healthcare at a fraction of what it would have cost in developed

nations such as USA and UK. It is expected that medical tourism in india will
 hild a value around US $2 billon by 2012. The city of chenni attracts around

45% of medical tourists from countries.

4. Pilgrimage tourism:

Mostly there are many temples in india. Where different temple are

situated in different places. All the temple are very ancient and this is main

reason for tourism in india. Pilgrimage tourism is increasing in india day

day. Tourist to visit in India for pilgrimage are Vashnodevi which is in

Jammu ete.

5. Eco tourism:
 Recently eco tourism is increasing or growing. Eco tourism is also a good

kinds of tourism. There are many eco tourism places in india like kaziranga

national park, gir national park and kanna national park.

6. Cultural tourism:

India ia ilso known foe rich cultural heritage. Many foreign tourist visit in

india. Some heritage places are pushkar fair , Taj mahotsav and suraj

kund mela.

This is the different types of tourism that contribute more substantially to

the nation’s GDP.

.

PESTLE ANALYSIS

Political:

The political factors are the main driving force of the industry. The Indian

tourism industry is built on the backbone of Government support and the

industry cannot sustain itself without it. The various archaeological sites

and the places of historical importance, the roads and the railways are all

in the hands of the Government. All the support services like the hotel

industry, the airlines industry and the tourist operators to name some are

heavily dependent on the support and the cooperation of the Government.

The major reason as to why tourists visit India is for the vast and rich

heritage that our country has. That is under the control of the Government,

through the Archaeological Survey of India. Any policy change that comes

into force can have dramatic effect on the way the industry players

perform. For example, the Government charges high rates of taxes on the

luxury and the star category hotels and this has always been a cause of

disagreement between the hotel associations and the Government. There

are many areas where the growth of tourism has not been rapid or has
seen dramatic fall because the political environment has not been

conducive. Examples are the North East for the former and Kashmir for the

latter. The neglect of the Government in developing the North-East has led

to a situation where there is practically no tourism in the seven states.

Similarly, the political turmoil in the state of Kashmir and now in Gujarat

has caused a virtual decimation of the flourishing tourism industry.

However, there has been a change in many of the policies of the

Government with regard to the tourism industry. The hotel industry has

been getting many incentives and many State Governments are

encouraging the growth of major hotels in their states.

Economic:

The tourism industry not unlike the other industries grows with the increase

in spending of the people. The more the people spend the more the

industry grows. The spending power of the people has been increasing in

the india and all over the world. Since we are concentrating on the

international tourist the large increase in the spending power in most

developed countries has left a large amount of idle cash in their hands.

This has led to a tourism boom the world over and India has been no

exception. There have been more people coming into the country with

more cash than ever before. This has lead to an increase in the demand

for better hotels. People who previously used to come to the country on a
shoestring budget and hunt around for the cheapest accommodation can

now afford to go in for luxury hotels. This has led to an increase in the

number of hotels in the country. However, an increase in spending does

not only limit itself to accommodation. The increase in the spending is also

evident in the increase in the number of people traveling by air. Even the

number domestic tourists traveling by air has dramatically gone up.

Social:

Tourism was always looked upon as something that led to the destruction

of the social fabric of a place. The more the amount of outside people

coming into a place, the more the perceived risk of that place losing its

identity. A good example is Goa. From the late 60's to the early 80's when

the Hippy culture was at its height, Goa was a haven for such hippies.

Here they came in thousands and changed the whole culture of the state.

This had a ripple effect on the country. People became cautious, especially

of the international tourists. Whenever a certain place became famous, the

example of Goa was cited to discourage the inflow of international tourists.

However some places such as Kerala and Rajasthan have been able to

strike a balance between their own culture and the demands of the

international tourists and have profited handsomely in the bargain. People

are now adopting themselves to the fact that tourism pays and it can be a

major source of income for them.

In addition, tourism as a form of recreation has really caught on. People

themselves have started traveling and are willing to travel to a place that is

out of the way and exotic. While traditionally traveling on a holiday meant

going to a hill station or a beach, now people are willing to go in for

adventure tourism and also visit places that might be exotic and cannot

really be called hospitable. For example, now places like Leh and

Lakshwadeep are mentioned in the same breath as Goa or Kashmir.

Technology:

Although technology does not seem to be a major influence at first glance,

it plays a major part in the promotion of a place. Better communication

facilities are one of the first prerequisites for growth in the inflow of tourists.

This has been made possible with technology. Improved technology in the

field of communication at cheaper costs has resulted in many remote and

inaccessible areas of the country getting connected to the rest of the world.

This connectivity has made these places visible to the world. Better

communication means access to media. And that is very important if any

place wants to be on the world tourist map.

Similarly better transportation facilities have lead to a dramatic increase in

the number of tourists visiting any particular place. The presence of an

airport and the availability of frequent flights are a great convenience to

any traveler.

Legal:

The laws that government the industry are not the same in all the parts of

the country. Many of the laws that are in effect are old and archaic, and not

geared to meet the challenges of the 21st century. With respect to

taxation, the World Travel and Tourism Council has observed that

“Tax paid by tourists in India is the highest in the world. Indian hotels

charge about 40% tax compared to other Asian countries where it varies

between 3% and 6%".

Such high taxation renders the tourism sector as a whole uncompetitive.

Further, there is considerable disparity between state level taxes,

especially on food and beverages. In fact, the sales tax on imported

beverages varies widely, e.g. 63% in Karnataka to 28.75% in West Bengal.

With respect to Foreign Investment in any tourism related venture,

clearance must be obtained from the Central government (RBI or Foreign

Investment Promotion Board). 51% foreign equity is automatically

approved subject to meeting certain prescribed criteria, including having a

capital base proposal below US $143 million (Rs. 6 billion). In the case of

NRIs, 100% foreign equity is automatically approved. Foreign equity

holding above 51 percent are possible, but are subject to FIPB approval. It

is to be noted that the Ministry of Industry provides final clearance of FIPB

approvals.

Dividends on such investments are repatriable.

The National Policy on Tourism lays emphasis on sustainable

development of tourism. In accordance, the Government has brought out a

comprehensive Eco Tourism Policy and Guidelines. There are several Acts

and laws, which ensure sustainable tourism. These are the Wild Life

Protection Act 1972, the Environment (Protection) Act 1986, and

Prevention of Cruelty to Animals Act 1986. These do not set aside any

specific area for tourism, but such areas have to be identified by the State

Governments and obtain the required approvals/relaxations.

Eco-tourism policies and Guidelines have been formulated by the

Government in consultation with the industry and are being implemented

on a voluntary basis.

Environmental:
The tourism industry can contribute to conservation through following:

 Financial contributions

1. Direct financial contributions

Tourism can contribute directly to the conservation of sensitive areas and

habitat. Revenue from park-entrance fees and similar sources can be

allocated specifically to pay for the protection and management of

environmentally sensitive areas. Special fees for park operations or

conservation activities can be collected from tourists or tour operators.

•Contributions to government revenues

Some government collect money in more far-reaching and indirect ways

that are not linked to specific parks or conservation areas. User fees,

income taxes, or rental of recreation equipment, and license fees for

activities such as hunting and fishing can provide governments with the

funds needed to manage natural resources. Such funds can be used for

overall conservation programs and activities, such as park ranger salaries

and park maintenance.

For Costa Rica, for example, tourism represents 72% of national monetary

reserves, generates 140,000 jobs and produces 8.4% of the gross

domestic product. The country has 25% of its territory classified under

some category of conservation management. In 1999, protected areas

welcomed 866,083 national and foreign tourists, who generated about US$

2.5 million in admission fees and payment of services.

Improved environmental management and planning:

Sound environmental management of tourism facilities and especially

hotels can increase the benefits to natural areas. But this requires careful

planning for controlled development, based on analysis of the

environmental resources of the area. Planning helps to make choices

between conflicting uses, or to find ways to make them compatible. By

planning early for tourism development, damaging and expensive mistakes

can be prevented, avoiding the gradual deterioration of environmental

assets significant to tourism.

Cleaner production techniques can be important tools for planning and

operating tourism facilities in a way that minimizes their environmental

impacts. For example, green building (using energy-efficient and non-

polluting construction materials, sewage systems and energy sources) is

an increasingly important way for the tourism industry to decrease its

impact on the environment. And because waste treatment and disposal are

often major, long-term environmental problems in the tourism industry,

pollution prevention and waste minimization techniques are especially

important for the tourism industry. A guide to sources of information on

cleaner production (free) is available here.

Environmental awareness raising :

Tourism has the potential to increase public appreciation of the

environment and to spread awareness of environmental problems when it

brings people into closer contact with nature and the environment. This

confrontation may heighten awareness of the value of nature and lead to

environmentally conscious behavior and activities to preserve the

environment. For instance, Honduran schoolchildren from the capital city of

Tegucigalpa are routinely taken to visit La Tigra cloud forest visitor center,

funded in part by eco-tourist dollars, to learn about the intricacies of the

rainforest.

If it is to be sustainable in the long run, tourism must incorporate the

principles and practices of sustainable consumption. Sustainable

consumption includes building consumer demand for products that have

been made using cleaner production techniques, and for services -

including tourism services - that are provided in a way that minimizes

environmental impacts. The tourism industry can play a key role in

providing environmental information and raising awareness among tourists

of the environmental consequences of their actions. Tourists and tourism-

related businesses consume an enormous quantity of goods and services;

moving them toward using those that are produced and provided in an

environmentally sustainable way, from cradle to grave, could have an

enormous positive impact on the planet's environment.

Protection and preservation

Tourism can significantly contribute to environmental protection,

conservation and restoration of biological diversity and sustainable use of

natural resources. Because of their attractiveness, pristine sites and

natural areas are identified as valuable and the need to keep the attraction

alive can lead to creation of national parks and wildlife parks.

In Hawaii, new laws and regulations have been enacted to preserve the

Hawaiian rainforest and to protect native species. The coral reefs around

the islands and the marine life that depend on them for survival are also

protected. Hawaii now has become an international center for research on

ecological systems - and the promotion and preservation of the islands'

tourism industry was the main motivation for these actions. (Source:

Mundus)
Grupo Punta Cana, a resort in the Dominican Republic, offers an example

of how luxury tourism development and conservation can be combined.

The high-end resort was established with the goal of catering to luxury-

class tourists while respecting the natural habitat of Punta Cana. The

developers have set aside 10,000 hectares (24,700 acres) of land as a

nature reserve and native fruit tree garden. The Punta Cana Nature

Reserve includes 11 fresh water springs surrounded by a subtropical forest

where many species of unusual Caribbean flora and fauna live in their

natural state. Guests can explore a "nature path" leading from the beach

through mangroves, lagoons of fresh water springs and dozens of species

of Caribbean bird and plant life. The Punta Cana Ecological Foundation

has begun reforesting some parts of the reserve that had been stripped of

their native mahogany and other trees in the past. Other environmentally

protective policies have been put into effect at the resort, such as

programs to protect the offshore barrier reefs and the recycling of

wastewater for use in irrigating the grounds. The fairways of the resort's

new golf course were planted with a hybrid grass that can be irrigated with

sea water The grass also requires less than half the usual amounts of

fertilizer and pesticides. The resort has also established a biodiversity

laboratory run by Cornell University.

India: Tourism Revenues and Expenditures 1990-2010

SWOT Analysis of Tourism in India:

Strength:

•India's geographical location, a culmination of deserts, forests, mountains,

and beaches.

•Diversity of culture i.e. a blend of various civilizations and their traditions.

•A wealth of archaeological sites and historical monuments.

•Manpower costs in the Indian hotel industry are one of the lowest in the

world. This provides better margins for the industry.

•A very wide variety of hotels is present in the country that can fulfill the

demand of the tourists. There are international players in the market such

as Taj and Oberoi. Thus, the needs of the international tourists and

travelers are seen to while they are on a visit to India.

Weakness:

•Lack of adequate infrastructure. The airlines in India, for example, are

inefficient and do not provide basic facilities at airports. The road condition

in India is very bad.

•A xenophobic attitude among certain sections of people.

•No proper marketing of India's tourism abroad. Foreigners still think of

India as a land of snake charmers. There are many places where the

image of India is one of poverty, superstition, and diseases. The case of

Plague in Surat in 1994 led to a decrease of 36% in arrival of foreign

tourists in India.
Opportunity:

•More proactive role from the government of India in terms of framing

policies.

•Allowing entry of more multinational companies into the country giving us

a global perspective.

•Growth of domestic tourism. The advantage here is that domestic tourism

and international tourism can be segregated easily owing to the difference

in the period of holidays.

Threat:

•Economic conditions and political turmoil in other countries affects

tourism.

•Political turbulence within India in Kashmir and Gujarat has also reduced

tourist traffic.

•Aggressive strategies adopted by other countries like Australia, Singapore

in promoting tourism.

Conclusion: The tourism industry in India is substantial and vibrant,

and the country is fast becoming a major global destination. India’s travel
and tourism industry is one of them most profitable industries in the

country, and also credited with contributing a substantial amount of foreign

exchange. This is illustrated by the fact that during 2006, four million

tourists visited India and spent US $8.9 billion.

Several reasons are cited for the growth and prosperity of India’s travel

and tourism industry. Economic growth has added millions annually to the

ranks of India’s middle class, a group that is driving domestic tourism

growth. Disposable income in India has grown by 10.11% annually from

2001-2006, and much of that is being spent on travel.

Thanks in part to its booming IT and outsourcing industry a growing

number of business trips are made by foreigners to India, who will often

add a weekend break or longer holiday to their trip. Foreign tourists spend

more in India than almost any other country worldwide. Tourist arrivals are

projected to increase by over 22% per year through till 2010, with a 33%

increase in foreign exchange earnings recorded in 2004.

The Tourism Ministry has also played an important role in the development

of the industry, initiating advertising campaigns such as the 'Incredible

India' campaign, which promoted India’s culture and tourist attractions

in a fresh and memorable way. The campaign helped create a colorful

image of India in the minds of consumers all over the world, and has

directly led to an increase in the interest among tourists.

The tourism industry has helped growth in other sectors as diverse as

horticulture, handicrafts, agriculture, construction and even poultry.

Both directly and indirectly, increased tourism in India has created jobs in a

variety of related sectors. The numbers tell the story: almost 20 million

people are now working in the India’s tourism industry.

BIBILIOGRAPHY:

www.economywatch.com

www.scribed.com

http://business.mapsofindia.com/tourism-industry/types/
http://www.voanews.com/english/archive/2009-09/2009-09-17-voa26.cfm?

CFID=324030583&CFTOKEN=77336296&jsessionid=8830a96e81c3cf72f

1b1d461e784667393a6

http://www.123oye.com/job-articles/it/article-it-travel.htm

http://legalseopros.com/?p=24