UNIT 1 TOURISM MARKETS

Structure
1.0 Objectives
1.1 Introduction
1.2 Tourism Markets: A Conceptual Background
1.3 Profiling Tourism Markets
1.3.1 World Tourism Markets
1.3.2 Markets for India
1.4 Features of Tourism Markets for India
1.5 Intra Regional and Domestic Markets
1.6 Let Us Sum Up
1.7 Clues to Answers

1.0 OBJECTIVES
After reading this Unit you will be able to:
• have a conceptual background of the tourism markets,
• profile tourism market, and
• understand many features of these markets.

1.1 INTRODUCTION
You have already read about profiling of tourists and the data related to it being
published by Department of Tourism, Government of India, in its annual report (see
TS-2 and TS-6). This profiling is used by different segments of the tourism industry
for devising their own marketing plans and strategies along with segmenting the
markets in relation to their own products or for designing products based on market
segmentation. For example, transport operators will use it for designing different
modes of transport for different segments of this market. Hoteliers will make best use
of this to design their own product supported by intangible elements like services and
experiences.
In this Unit an attempt has been made to familiarise you with various aspects of
tourism markets like basic concepts and features. The Unit also gives you an idea of
the top international tourism markets for India and the profile of tourists originating
from these markets.

1.2 TOURISM MARKETS: A CONCEPTUAL

BACKGROUND
As stated above in TS-2 and TS-6, you have studied tourism markets as tourist
generating markets and tourist receiving markets. Even within these two broad
categories of markets we have domestic tourist markets, regional tourist markets, etc.
(intra-regional and inter-regional tourist market). If we go in to further classification
of tourist markets you will see that in domestic or regional tourist market we have
pilgrim tourist market, cultural tourist market, business/corporate travel market,
youth tourist market, special interest tourist market so on and so forth. Same is the
case for foreign markets.
The tourist markets can further be classified on the basis of type of services required
by them, for instance, 5-star tourist market, budget class tourist market, incentive
tourist market, etc. This clearly indicates that different tourist markets react in
different way. Hence, markets are heterogeneous rather than homogenous. No buyers
or potential buyers of a product are ever identical in all respects. Therefore, it

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becomes imperative to know your markets well to be a successful marketer of your
product. Adequate knowledge of markets also makes possible for you to tailor your
products and marketing programmes or service that are suitable for each segment you
intend to cater to. Since a market is not only an aggregate demand for a product but
also the sum of the demands of different market segments, therefore, for getting a
positive response in the market, it is essential that you as a marketer are well aware of
your markets.
According to Philip Kotler it is the concept of exchange that leads to the concept of
a market. “A market consists of all the potential customers sharing a particular need
or want who might be willing and able to engage in exchange to satisfy need or
want”. Thus, the size of the market largely depends upon the number of persons who
exhibit the need, have resources that interest others and are willing to offer these
resources in exchange for what they want.
In its old context market is seen as a place where buyers and sellers gathered to
engage in exchange, such as, village melas, or chowks (squares). To an economist,
market is a collection of buyers and sellers. However, to a marketer, sellers constitute
the industry and buyers constitute the market. According to Philip Kotler
relationship between the two can be illustrated as:
Communication

Goods/Services
Industry Market
(A collection of sellers) (A collection of buyer
Money

Information/Feedback

Figure I: Relationship between Industry and Market

This can to a large extent be applied to tourism markets where principal suppliers like
hoteliers, airlines, road transport operators, tour operators, travel agents, etc.
constitute the industry and they communicate their market, i.e., both actual and
potential, existing as well as future product lines to match the needs of consumers.
Once in the tourist market this exchange materialises and consumer consumes the
product, feedback is awaited for further improvement of product and strengthening of
relationship.
There is another set of people who use the term markets to express various groups of
customers, viz.,
i) Need markets (specific need based tourist, honeymooners want to
visit solitude places)
ii) Product Markets (tourist who want in exchange value for their money,
like incentive/ social tourist)
iii) Demographic Markets (tourists belonging to different age groups. Youth
would enjoy Thailand as a destination. Middle age
group would enjoy Singapore. Senior tourist may
enjoy landscape of United Kingdom more
particularly Scotland or Ireland. Women tourist may
like to visit Dubai for shopping, etc.)
iv) Geographic Markets (As you have studied in TS-2 and TS-3 profiling
characteristics of tourists from different countries)
If you look at modern economies you will find that it abounds in markets. According
to Philip Kotler the structure of flows in a Modern Exchange Economy is given
below (Figure II):
Resources Resources
Revenue Markets
Money Money
Taxes, Services,
Goods Money
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Manufacturer Government Governmen
 Figure II: Flow in a Modern Exchange Economy
It indicates that modern economies operate on the principle of division of labour
where each person specialises in the production of something, receives payment and
buys things needed with this money. If you look at the above given figure it says that
manufacturer goes to resource markets for raw material, labour, finance, etc., buy
them and turn them into goods or services, sell them to middlemen, who in return sell
them to consumers. The consumers sell their labour for which they receive money
income to pay for goods and services they buy. Government in this figure is yet
another market playing two roles – buying goods from resource manufacturers and
middlemen markets and pays them as well as taxes these markets and in return
provide required public services. Thus, each nation’s economy consists of a complex
set of markets which are linked through exchange processes.
Interestingly, when we talk of tourism markets, generally speaking the reference is to
tourism generating markets. However, you should note that beside the tourism
generating markets, i.e., the tourists, for various segments of the tourism industry
there will be different types of markets. For example, for a tourist transport operator
the market consists of tour operators, travel agents or hotels who buy his product for
consumption by tourists.
A hotelier also sells rooms to tour operators or travel agents besides direct selling to
tourists. Hence again, though the ultimate consumer is the tourist but the sales would
be geared to tour operators, etc.
In fact, according to Paul F.J. Eagles, “Understanding the market means
understanding the place, goods, consumer preferences, demand, available
opportunities, and the enterprise of buying and selling”. (Source:
http://www.ecotourism.org/textfiles/eagles.txt)

1.3 PROFILING TOURISM MAREKTS

Tourism market is a combination of tourist generating area, journeys by tourists and
the volume of travel. In other words, it is a combination of actual or potential tourists
who buy or tour or could tour or buy or it is the actual and potential demand for a
tourism product based on a specific tourism motivation or purpose. When we talk
about tourist generating markets. We talk about geographical regions with peculiar
characteristics. These have been discussed in subsequent Sub-Sections.
Knowledge of tourist generating markets is essential for the marketing of tourism
products or services. This helps you not only in segmenting the market but also in
targeting your customers. Take for example two countries. Country A has a sound
economy, people love to travel and so on. Country B has a poor economy; people
have no surplus to spend on travel. Naturally, the marketer of tourism products will
target country A.
Before taking up certain issues let us understand some basic concepts.
According to the Department of Tourism, Government of India an “International
visitor is any person visiting the country on a foreign passport and the main
purpose of the visit is other than the exercise of an activity remunerated from
within the country or establishment of residence in the country.” In this
definition two segments of visitors are covered.

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i) Foreign tourists who stay at least 24 hours in India and the purpose of whose
journey can be classified under any one of the following:
a) Leisure, recreation, health, study, holiday, religion and sport.
b) Business, family, mission or meeting.
The following three categories are not regarded as tourists:
a) Persons arriving with or without a contract, to take up an occupation or
engage in activities remunerated from within the country.
b) Persons coming to establish residence in the country.
c) Persons who come as Excursionists.
ii) Excursionist is a visitor who stays less than 24 hours in the country. Those
visitors who arrive in the country by cruise ships and do not spend a night at an
accommodation establishment in the country are mentioned as cruise
passengers.
These definitions are useful while identifying the markets or tourism generating
regions and also for data collection. The statistics regarding world tourism
movements like arrivals, departures, tourism receipts and expenditure, etc. are
collected from the various bulletins and publications of the World Tourism
Organisation (WTO). The Market Research Division of the DoT also collects data
and compiles it in the form of Tourism Statistics annually. For example:
i) The Arrival Statistics are compiled from disembarkation cards filled in by the
foreign tourists at the time of their entry into India at either the airports/seaports
or land check posts.
ii) The Average Duration of Stay is estimated on the basis of a sample drawn from
the embarkation cards filled by the tourists at the time of their departure from
India at the exit points.
iii) The data about nationality, age, sex, etc. is also obtained through similar means.
This kind of data is helpful in profiling the tourists but has its limitations for the
purposes of marketing. For example, in 2000 India received 21,52,926 tourists from
Germany. We also know how many out of these were women or men or to which age
group they belonged. But in order to know their motivation, type of services expected
by them, etc. one has to conduct special surveys. Generally, such tasks are performed
by the overseas Regional Offices of the DoT along with carrying out the promotional
campaigns, advertising and image building exercises for India. Let us first look at the
world tourism markets.

1.3.1 World Tourist Markets

A variety of factors determine the flow of tourists. Sound economy, surplus incomes,
travel and holiday attitudes, search for leisure time, incentives for travel by
employers, number of holidays and vacations, political conditions and travel
advisories by government are some factors to be taken note of in this regard. An
analysis of the data available shows that the major tourist generating markets in the
world have been the developed countries. Today all destinations are in intense
competition with each other to get a larger share in the market. Table 1 gives you the
international tourist arrivals worldwide any by regions 1991-2000.
Table 1: International Tourist Arrivals Worldwide and by Regions 1991-2000 (Arrivals
in Millions)
Region 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
WORLD
Arrivals 462.7 500.9 515.7 550.3 550.3 597.4 618.2 626.5 650.4 698.8
% Change – 8.3 3.0 6.7 0.0 8.6 3.5 1.3 3.8 7.4
AFRICA
Arrivals 16.2 18.0 18.5 18.9 20.1 21.8 23.2 24.2 24.9 26.5

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27.6% Change – 11.1 2.8 2.2 6.3 8.5 6.4 7.3 6.4 4.2
AMERICAS
Arrivals 95.5 102.3 102.1 104.8 108.9 115.2 116.6 119.5 122.2 129.0
% Change – 7.1 -0.2 2.6 3.9 5.7 1.3 2.5 2.3 5.5
E.
ASIA/PACIFIC
Arrivals 56.4 64.2 71.2 76.8 81.4 89.0 88.3 88.0 97.6 111.9
% Change – 13.8 10.9 7.9 6.0 9.3 -0.8 -0.3 10.9 14.7
EUROPE
Arrivals 282.9 302.3 309.9 334.8 323.4 353.7 371.1 373.7 380.2 403.3
% Change – 6.9 2.5 8.0 3.4 9.4 4.9 0.7 1.7 6.1
MIDDLE EAST
Arrivals 8.4 10.5 10.5 11.1 12.4 13.3 14.3 15.1 18.2 20.6
% Change – 25.0 0.0 5.7 11.7 7.3 7.5 5.6 20.5 13.2
SOUTH ASIA
Arrivals 3.3 3.6 3.5 3.9 4.2 4.4 4.8 5.2 5.8 6.4
% Change – 9.1 -2.8 11.4 7.7 4.8 9.1 8.3 11.5 10.3
SHARE OF
INDIA (in the
0.36 0.37 0.34 0.34 0.39 0.38 0.38 0.38 0.38 0.38
world tourist
arrivals)
* Provisional
Source: World Tourism Organisation
For a good marketer it is essential to know where the tourists were heading for from
these 15 top tourist generating markets. The answer is provided in Table 2 which
gives you the figures for 15 top countries in terms of tourist arrivals in the year
2000.

Table 2: International Tourist Arrivals, 2000

Rank Country International
Tourist Arrivals (in
millions)
1 France 74.5
2 United States of America 52.7
3 Spain 48.5
4 Italy 41.2
5 China 31.2
6 United Kingdom 24.9
7 Canada 20.4
8 Mexico 20.0
9 Germany 18.9
10 Russian Federation 18.5
11 Poland 18.0
12 Austria 17.8
13 Hungary 15.6
14 Hong Kong (China) 13.1
15 Greece 12.5
Source: WTO

In terms of regional distribution of international tourist arrivals Western Europe

continues to attract the maximum number getting 32.6% share out of total tourist
arrival in India. However, it has declined substantially from 59.3% in 1993. The share
of South Asia in 2000 was 25.2%, followed by North America at 13.5%; South East
Asia (5.7%); Africa (5.5%); East Asia (5.0%); West Asia (4.5%); Australasia (4.1%);

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Eastern Europe (2.4%); C.S. America (1.5%). If we look at it from the perspective of
percentage in growth then North America recorded in the year 2000 maximum
growth of 21.8% followed by West Asia (16.4%), Australasia (12.9%), Central and
South America (6.9%), South Asia (6.29%), Africa (5.3%), South East Asia (3.4%);
East Asia (2.2%); West Europe (0.3%). Eastern Europe recorded negative growth rate
of -0.8%. Europe continues to attract the maximum numbers getting 59.3% share out
of the total world arrivals in 1993. However, there has been a decline in its share over
the years as in 1980 it was 66% and 62.6% in 1990. The share of East Asia and the
Pacific region in 1993 was 13.7% which is an increasing trend as in 1980 it was 7.3%
and 11.4 in 1990. Africa and America have shown static figures where as the Middle
East has shown a declining trend (from 2.1% in 1980 to 1.4 in 1993).
Let us see where India stands in this scenario. Well the figures are:
World Tourist Arrivals (2000) = 698.3 million
Tourist Arrivals in India (2000) = 2.15 million
Percentage share of India = 0.38%
India’s Rank in World Tourist Arrivals = 50th
However, in terms of foreign exchange receipts the percentage share of India is
almost double than that of Arrivals:
World Tourism Receipts (2000) = 435.9 billion US$
Estimated Foreign Exchange Receipts = 3168 billion US$
in India (2000)
Percentage share of India = 0.67%
India’s rank in World Tourism Receipts = 34th
This indicates that in spite of a lower share in arrivals the tourists spend more in India
and the average length of stay is about 28.7 days. This is an encouraging trend
because many of India’s competitors like Singapore, Malaysia, Thailand, etc. receive
a much bigger share in arrivals when compared to India but with a lesser length of
stay.
There are certain new markets also opening up. For example, South Africa, Israel and
the new states of Uzbekistan, Tazakistan, etc. have emerged as potential markets for
India and many tour operators have already entered the field.

1.3.2 Markets for India

In terms of attractions India, as a destination, is a strong tourism product. Culture,
history, architecture, beaches, mountains, religions and ethnicity, etc. have
traditionally been the pull factor for international tourists. Yet, infrastructure wise
there are certain weaknesses which makes it less attractive. For example,
accessibility, lack of international airports, big size of the country, lack of hotel
rooms, etc. In spite of these weaknesses India crossed the 2 million mark of tourist
arrivals in 1995 (Total 2123683). The DoT is keeping a target of 5 million by 2005
keeping in view the shortcomings, seems unrealistic. Yet the efforts will go on. The
markets for India are determined by assessing the Tourist Arrivals from different
countries. Table 3 gives the figure of 15 top countries during 1999-2000.

Table 3: Tourist Arrivals in India from Top 15 Countries in 1999-2000

Number % Change % to the Total
Nationality
1999 2000 2000/99 1999 2000

U.K. 345085 354217 206 17.1 16.5

U.S.A. 251926 309309 22.8 12.5 14.4

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 Sri Lanka 120072 128444 7.0 5.9 6.0

Canada 82892 98259 18.5 4.1 4.6

Australia 73041 90456 23.8 3.6 4.2

France 85891 89565 4.3 4.2 4.2

Germany 85033 84989 -0.1 4.2 4.0

Japan 79373 79167 -0.3 3.9 3.7

Malaysia 52613 57927 10.1 2.6 2.7

Italy 50677 52529 3.7 2.5 2.5

Singapore 53310 49198 -7.7 2.6 2.3

Netherlands 48820 45398 -7.0 2.4 2.1

Switzerland 34824 31402 -9.8 1.7 1.5

South Africa 23909 26502 10.8 1.2 1.3

Israel 23417 25005 6.8 1.2 1.2

Others 614148 620559 1.0 30.3 28.8

Total 2025031 2152926 6.3 100.0 100.0

Note: The analysis given in the above paragraphs excludes the arrival figures from Pakistan and
Bangladesh
Source: Tourist Statistic 2000, Market Research Division, Ministry of Tourism and Culture, New Delhi

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 Table 4: Tourist Arrivals in India from Top Fifteen Countries From 1981 to 2000

Netherlands

Switzerland
Singapore
Sri Lanka

Germany

Australia

Malaysia
Canada
Year

France

Africa
Japan

South

Israel
Italy
USA
UK
1981 116684 82052 75842 57272 55471 25358 29032 20940 26458 28503 17950 10780 14111 9917 2569

1982 120772 86806 76143 59267 50885 25991 29103 23395 26552 29791 19026 10724 14609 10525 3169

1983 136823 95847 81716 50158 52120 29857 26662 23436 25796 27947 21252 11358 15099 11161 2548

1984 124205 95651 75449 47148 48930 25135 29566 24546 22993 23570 19204 12101 14915 9180 1928

1985 119544 95920 69063 44091 45738 29022 30573 22047 23265 23187 18485 13158 14855 3093 1448

1986 160685 125364 75631 65948 64811 39837 36402 33264 26209 38548 24189 15297 25850 4375 1707

1987 166590 134876 74351 64432 72300 37677 46240 32883 28480 41151 26380 18819 27791 9335 2473

1988 200509 122888 70640 69799 77543 37498 49244 31462 29635 47612 27565 21327 31147 11531 2620

1989 229496 134314 67680 78001 78812 40306 58707 30443 33120 50751 29377 22716 32034 10251 4634

1990 235151 125303 68400 79496 71374 41046 59122 30076 34278 49194 32570 24353 32431 8176 5855

1991 212052 117332 70088 69346 72019 36142 46655 22700 30617 41129 28363 19845 29247 8087 6882

1992 244263 152288 71935 74304 84422 43386 60137 26646 35201 51138 35039 30145 28851 11068 9468

1993 274168 158159 76898 70694 83340 47800 49616 28795 35334 40315 40223 30856 31016 9914 9646

1994 300696 176482 89009 73088 85352 56441 63398 33142 40762 43510 44157 35094 30102 11538 12098

1995 334827 203343 114157 82349 89040 63821 76042 36150 50039 53015 48632 40147 29388 18750 14806

1996 360686 228829 107351 93325 99853 74031 99018 48755 53370 49910 47136 40246 34989 19328 18387

1997 370567 244239 122080 91423 105979 78570 99729 50647 60401 53854 52004 44843 31717 22218 20162

1998 376513 244687 118292 97898 93993 80111 89565 57807 47496 54058 54328 54227 33364 20397 21103

1999 345085 251926 120072 85891 85033 82892 73373 73041 52613 50677 53310 48820 34824 23909 23417

2000 354217 309309 128444 89565 84989 98259 79167 90456 57927 52529 49198 45398 31402 26502 25005
(Source: “Tourist Statistics”, Market Research Division, Ministry of Tourism and Culture, Govt. of India, New Delhi.)

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Let us examine the trend in tourist arrivals (country wise analysis).

1) United Kingdom
United Kingdom remained on the top of all tourist generating countries for India with 354217
tourist arrivals during the year 2000. As compared to 116684 arrivals during 1981 the average
compound rate of growth was 6.0 per cent per annum from 1981 to 2000. Year-wise tourist
arrivals are given in Table 4. The following graph exhibits yearly trends in the tourist arrivals
from this country.

400
350
No. of Tourists ('000)

300
250
200
150
100
50
0
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Year of Arrival
Figure III: Tourist Arrivals from U.K.
During the year 2000 about 98.6% of the U.K. nationals came by air and 1.4% through land
routes.
60.6% of the British tourists were males and the rest 39.4% were females. The most predominant
age group was 35-44 with 24.9% of the tourists followed by the age groups of 45-54 and 25-34
with 23.2% and 21.4% tourists, respectively.
The maximum number of arrivals were recorded during winter months of October to December
(34.9%) and January to March (31.3%), respectively.

2) United States of America

United States of America is presently the second largest market for India though it occupied the
top position till 1973. The tourists from this country have increased steadily over the years except
during 1974, 1975, 1979,1980, 1984 and 1988. Having registered positive growth during 1985,
1986, 1987, 1989 it showed a negative growth during 1990 and 1991. The arrivals during 1992,
1993, 19994, 1995, 1996, 1997, 1998 and 1999 recorded a growth of 29.8%, 3.9%, 11.6%, 15.2%,
12.5%, 6.7%, 0.2% and 3.0%, respectively, over the previous years. The growth registered during
2000 was 22.8 per cent over the year 1999. The arrivals grew from 82052 in 1981 to 3,09,309 in
2000 at a compound growth rate of about 7.2% per annum. Year-wise tourist arrivals are given in
Table 4. The following graph exhibits yearly trends in the tourist arrivals from this country.
During 2000, about 99.1% of the American tourists came by air and 0.9% by land.
While 59.0% of the American tourists were male and the rest were females. The dominant age-
group among them was 35-44 years (24.9%) followed by the age group 45-54 years (23.9%) and
25-34 years (18.9%), respectively.
The maximum tourist arrivals during winter months of October to December which accounted for
34.1% of the total arrivals from this country, followed by January-March (25.6%).
92.0% of US Nationals visited India for holidays and sight seeing and 3.0% came for business.

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 350

300

No. of Tourists (in '000)

250

200

150

100

50

0
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Year of Arrival
Figure IV: Tourist Arrivals from U.S.A.

3) Sri Lanka
Sri Lanka continued to occupy the third position among the tourist generating countries for India
and constituted about 6.0% of the total foreign tourist arrivals in India during 2000. During 1984
and 1985 the traffic from Sri Lanka declined by 7.7% and 8.5%, respectively. Though it registered
an increase of 9.5% during 1986, again it declined by 1.7% in 1987, 5.0% in 1988, 4.2% in 1989.
The traffic increased during the year 1990, 1991, 1992, 1993, 1994, 1995 by 1.1%, 2.5%, 2.6%,
6.9%, 15.7% and 28.3%. However, a decline of 6.0% and 3.1% was registered during 1996 and
1998 over the years 1995 and 1997. The traffic increased during 1997, 1999 and 2000 by 13.7%,
1.5% and 7.0% over the corresponding year of previous years. Arrivals from Sri Lanka which
were 75842 in 1981 grew upto 128444 in 2000 at a compound growth rate of 2.8% per annum.
Year-wise arrivals are given in Table 4. The following graph exhibits yearly trends in the tourist
arrivals from this country.
140

120
No. of Tourists (in '000)

100

80

60

40

20

0
1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Year of Arrival
Figure V: Tourist Arrivals from Sri Lanka

The peak period of Sri Lankan was the first quarter from January to March constituting 26.8%
followed by the fourth quarter from October to December with 25.7% during 2000. About 98.5%
of the tourists travelled by air and 1.5% by land.
About 54.4% of the Sri Lankan tourists were males. The dominant age-group was 35-44 years
29.0% followed by the age-group 25.34 year (21.4%) and 45-54 years (20.2%)
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 96.8% of Sri Lankan nationals visited India for holidays and sight seeing, and about 0.3% came
for business.

4) Canada
Canada occupies the fourth position among the tourist generating countries. The tourists’ traffic to
India was from Canada grew since 1981 a compound growth rate 7.4% per annum. The arrivals
from this country during 2000 were 98259 as compared to 25358 during 1981. The arrivals
increased steadily from 1972 onwards except during 1984 when there was a decline of about
15.8%. It, however, registered an increase of 15.5% and 37.3% during 1985 and 1986 but went
down by 5.4% and 0.5% during 1987 and 1988, respectively. Traffic increased during 1989 and
1990 by 7.5% and 1.8% but decreased during 1991 by 11.9% over previous year. The traffic from
Canada increased during 1992, 1993, 1994, 1995, 1996, 1997, 1998 and 1999 by 20.0%,10.2%,
18.1%, 13.1%, 16.0%, 6.1%, 2.0%, and 3.5%, respectively. The year 2000 ended with an increase
of 18.5% over 1999. Year-wise arrivals are given in Table 4. The following graph exhibits yearly
trends in the tourist arrivals from this country.
120

100
No. of Tourists ('000)

80

60

40

20

0
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Year of Arrival
Figure VI: Tourist Arrivals from Canada

The share of Canada in the total tourist traffic to India was about 4.6% during 2000.
About 99.0% of the Canadian tourists visited India by air and 1.0% by land during 2000.
About 68.1% of the Canadians were males and the age group which was predominant was 35-44
years sharing 30.5% of the total followed by the age group of 45-54 years (24.7%).
The October to December 2000 accounted for 30.9% of the arrivals followed by the period
January to March with 28.7%.
91.4% tourists from Canada visited India for holidays and sightseeing. 1.5% came for business.

5) Australia
During 2000 Australia occupied the 5th position among top 15 tourist generating markets for
India. The growth registered during 1988 to 1995 was 2.0%. Australia registered a phenomenal
growth of 34.9% during 1996 over the year 1995. The growth registered during 1997, 1998 and
1999 was 3.9%, 14.1%, and 26.4%, respectively. Australia continued to register a positive growth
during 2000 of the order 23.8% over 1999. The tourist traffic from Australia during 1981 was
20940 which increased by 90456 in 2000 with a compound growth rate of 8.0% per annum. Year-
wise arrivals are given in Table 4. The following graph exhibits yearly trends in the tourist
arrivals from this country.
The contribution of Australian tourists to the total traffic to India was about 4.2% in 2000.

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 100
90

No. of Tourists (in '000)

80
70
60
50
40
30
20
10
0
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Year of Arrival
Figure VII: Tourist Arrivals from Australia

The air was predominant mode of transport for Australia tourists constituting 98.2% of the total
arrivals. Remaining tourists came through land routes.
The male tourists constituted about 64.9% in 2000. The dominated age group was 35-44 years
accounting for 29.7% of the total tourists arrivals followed by the age group 45-54 years with
25.1%.
The maximum number of Australian tourists came to India during October to December 2000
constituting about 32.5% followed by the period January to march with 29.5%.
87.3% Australian tourists visited India for holidays and sight seeing and 6.5% came for business.

6) France
France occupy the 6th position among the tourist generating countries for India and constituted
about 4.2% of the foreign tourist arrivals in India during 2000. The arrivals grew from 57272 in
1981 to 89565 in 2000 at a compound growth rate of 2.4%. During seventies the growth achieved
was in the range of 4% to 5.6% but during eighties especially from 1983 onwards there was a
negative trend. The arrivals during 1986, however, registered an increase of 49.6%. After having
negative growth of 2.3% during 1987 arrivals showed positive growth during 1988 to 1990.
However, the traffic declined by 12.8% and 4.9% during 1991 and 1993 but showed a positive
growth of 7.1% during 1992. Again the traffic increased by 3.4%, 12.7% and 13.3% during 1994,
1995 and 1996. The year 1997 witnessed a decline of 2.0% and there was an increase of 7.1%
during 1998. The traffic declined during 1999 of the order of 12.3% over 1998. The year 2000
ended with an increase of 4.3% over 1999. Year-wise arrivals are given in Table 4. The following
graph exhibits yearly trends in the tourist arrivals from this country.
120
No. of Tourists (in '000)

100
80
60
40
20
0
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000

Year of Arrival
Figure VIII: Tourist Arrivals from France

15
 During 2000 about 98.2% of the French tourist used air route to visit India and remaining 1.8%
used land route.
About 60.7% of the French tourists were males. The age group 35-44 years accounted for 29.1%
followed by age group 25-34 with 24.6%.
The period from January to March was the most popular period of visit for the French tourists
constituting 30.8% followed by the months of October to December with 26.0%.
90.6% of French nationals visited India for holidays and sight seeing. 3.6% came for business.

7) Germany
Nationals of Germany contributed about 3.9% of the foreign tourist arrivals I India during 2000
and occupied the 7th position amongst the major tourist generating markets of India. The tourists
from this country have been increasing steadily over the years except during some of the years in
eighties. The arrivals grew from 55471 in 1981 to 84989 in 2000 at a compound rate of growth of
2.3%. A substantial growth of about 41.7% was registered during 1986 followed by about 11.6%,
7.3% and 1.6% growth during 1987, 1988, and 1989, respectively. The traffic during 1990
declined by 9.4% but there was increase of 0.9% and 17.2% during 1991 and 1992. The traffic
from this country declines by 1.3% during 1993. However, the traffic increased by 2.4%, 4.3%,
12.1% and 6.1% during 1994, 1995, 1996 and 1997, respectively but declined by 11.3% during
1998 and 9.5% during 1999. The traffic declined during 2000 of the order 0.1% over 1999. Year-
wise arrivals are given in Table 4. The following graph exhibits yearly trends in the
tourist arrivals from this country.

120

100
No. of Tourists ("000)

80

60

40

20

0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
0
8
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
0
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20

Year of Arrival
Figure IX: Tourist Arrivals from Germany
The most preferred mode of transport for the German tourists during 2000 was air and it
accounted for 97.9% of the arrivals and 2.1% used land routes.
About 64.2% of the German tourists were males. The age group 35-44 years dominated the
arrivals from this country with 28.7% followed by 25-34 years with 23.6%. The age group of 45-
54 years came next with 22.2%.
The maximum number of tourists visited this country during January to March accounted for
35.0% followed by 4th quarter which accounted for 28.0%.
91.8% of German nationals visited India for holidays and sightseeing and 5.0% came for
business.

8) Japan
Japan is one of the most important tourist generating markets of India in the East. Though the
arrivals of Japan nationals were increasing steadily till 1980, it declined during 1981 and 1983 by
5.1% and 8.4%, respectively over the corresponding previous years. During 1984, 1985, 1986,
1987, 1988, 1989 and 1990 the arrivals from this country again went up by 10.9%, 3.4%, 19.1%,

16
 27.0%, 6.5%, 19.2% and 0.7%, respectively as compared to corresponding previous years.
However, it declined during 1991 by 21.1% over 1990. The arrivals from Japan during 1992
recorded phenomenal growth of about 28.9% over 1991. However, the arrivals during 1993
declined by 17.5% over the year 1992. The arrivals increased by 27.8%, 19.9%, 30.2% and 0.7%
during the year 1994, 1995, 1996 and 1997, respectively over the corresponding previous years
but in 1998 and 1999 there was a negative growth of 10.2% and 18.1% as compared to previous
years. The year 2000 ended with a positive growth of 7.9% over the previous year. Year-wise
arrivals are given in Table 4. The following graph exhibits yearly trends in the tourist
arrivals from this country.
120
No. of Tourists (in '000)

100

80

60

40

20

0
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
Year of Arrival
Figure X: Tourist Arrivals from Japan
The contribution of Japanese tourists to the total arrivals in India was 3.7% during 2000. During
this year about 94.5% of tourists came to India by air and 5.5% by land routes.
About 66.3% of the Japanese tourists were males. The dominant age group of these tourists was
25-34 years (26.3%) followed by the age group of 35-44 years (25.3%).
The maximum number of Japanese tourists (25195 or 31.8%) arrived during the months of
January-March. While 89.6% of Japanese nationals visited India for holidays and sight seeing and
2.8% visited for business.

9) Malaysia
The growth registered during 1992, 1993, 1994, 1995, 1996 and 1997 was about 15.0%, 0.4%,
15.4% 22.8%, 6.7% and 13.2% over previous years. Tourist traffic from Malaysia declined by
21.4% during 1998 but there was an increase of 10.8% during 1999. The year 2000 ended with a
growth of 10.1%. The tourist traffic from Malaysia during 1981 was merely 26458 which
increased to 57927 in 2000 with a compound growth rate of about 4.2% per annum. Year-wise
arrivals are given in Table 4. The following graph exhibits yearly trends in the tourist
arrivals from this country.
70
No. of Tourists ('000)

60
50
40
30
20
10
0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
0
8
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
0
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20

Year of Arrival
Figure XI: Tourist Arrivals form Malaysia

17
 The contribution of Malaysian tourists to the total tourist traffic to India was 2.7% in 2000. The
air was predominant mode of transport of Malaysian tourists constituting 99.0% of the total
arrivals. Remaining tourists came through land routes.
The male tourists constituted 53.2% in 2000. The dominated age group was 35-44 years
accounting for 30.3% of the total arrivals followed by the age group of 25-34 with 22.8%.
The maximum number of tourists from Malaysia came to India during October to December 2000
constituting about 34.1% followed by the January to March with 26.4%.
95.7% tourists from Malaysia visited India for holidays and sight seeing and 0.4% came for
business.

10) Italy
As has been the case with many of the important West European nationalities, the Italian tourist
arrivals were also on the increase from 1987 to 1989. However, the arrivals during 1990 and 1991
showed a decline of about 3.1% and 16.4%, respectively. The arrivals from Italy during 1992
registered an increase of about 24.3% but the traffic declined during 1993 and it was about 21.2%
over 1992. However, the traffic from this country increased by 7.9% and 21.8% during 1994 and
1995 over the years 1993 and 1994, respectively. During 1996 there is a decline of 5.9% over
1995. During 1997 and 1998 the traffic increased by 7.9% over 1996 and 0.4% over 1997. A
negative growth of 6.3% was registered during 1999. The year 2000 ended with an increase of
3.7% over 1999. The arrivals grew from 28503 in 1981 to 52529 in 2000 at a compound growth
rate of 3.3% per annum. Year-wise arrivals are given in Table 4. The following graph exhibits
yearly trends in the tourist arrivals from this country.
60
50
No. of Tourists ('000)

40

30
20
10
0
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20

Year of Arrival
Figure XII: Tourist Arrivals from Italy

The contribution of Italy tourists to the total tourists arrivals in India was 2.4% in 2000.
The predominant mode of transport was air constituting about 98.8% per cent of the total tourist
arrivals. Remaining tourists came through land routes.
The male tourists constituted 63.4% of the total in 2000. The age group which dominated the
arrivals was 35-44 years accounting for 29.3% of the arrivals followed by the age group 25-34
years with 24.3% during 2000.
The quarter January to March 2000 accounted for maximum number of arrivals constituting
34.9% followed by the quarter October to December with 26.4%.
92.4% tourists from Italy visited India for holidays and sight seeing and 4.3% came for business.

11) Singapore
During 2000, Singapore occupied the 11th position among the major tourist generating markets in
India. The arrivals grew from 17950 in 1981 to 49198 in 2000 at a compound growth rate of
about 5.4% per annum. The tourist with Singapore nationality increased steadily from 1982 to

18
 1983. But negative growth of 9.6% and 3.7% was registered during 1984 and 1985, respectively
over the corresponding period of previous years. However, the arrivals during 1986, 1987, 1988,
1989 and 1990 recorded a growth of 30.9%, 9.1% 4.5%, 6.6% and 10.9%, respectively over the
corresponding period of previous years. A negative growth of 3.1% was registered during 1996
but again the year 1997 and 1998 witnessed positive growth of 10.3% and 4.5%. During 1999
there was negative growth of 1.9% as compared to the arrivals in the corresponding previous
years. The year 2000 ended with a negative growth of 7.7%. Year-wise arrivals are given in
Table 4. The following graph exhibits yearly trends in the tourist arrivals from this
country.
60

50
No. of Tourists ('000)

40

30

20

10

99
00
94
95
96
97
98
91
92
93
88
89
90
81
82
83
84
85
86
87

19
19
19
20
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19

Year of Arrival
Figure XIII: Tourist Arrivals from Singapore

The contribution of tourists with Singapore nationality to the total tourist arrivals in India was
2.3% in 2000.
The predominant mode of transport was air constituting about 99.9% of the total tourist arrivals.
Remaining tourist came through land routes.
The male tourists constituted 55.2% of the total in 2000. The age group which dominated the
arrivals was 35-44 years accounting for 28.4% of the arrivals followed by the age group 25-34
years with 23.6% during 2000.
The quarter October to December 2000 accounted for maximum number of arrivals constituting
30.2% followed by the quarter January to March with 25.1%.
90.8% tourists from Singapore visited India for holidays and sight seeing and 8.5% came for
business.

12) Netherlands
During 2000, Netherlands occupied the 12th position among the major tourist generating markets
in India. The arrivals grew from 10780 in 1981 to 45398 in 2000 at a compound growth rate of
about 7.9% per annum. A negative growth of 10.0% was registered during 1999 as compared to
previous years. The year 2000 ended with a negative growth of 7.0% over 1999. Year-wise
arrivals are given in Table 4. The following graph exhibits yearly trends in the tourist
arrivals from this country.
The contribution of Netherlands tourists during 2000 to the total traffic to India was about 2.1%.
The air was predominant mode of transport to Netherlands tourists constituting 97.4% of the total
arrivals. Remaining tourists came through land routes.
The male tourists constituted about 64.6% in 2000. The dominated age group was 35-44 years
accounting for 25.8% of the total arrivals followed by the age group 25-34 years with 26.0%.
The maximum number of Netherlands tourists came to India during January to March 2000
constituting 32.2% followed by the period October to December 2000 with 26.8%.

19
 60

50
No. of Tourists ('000)
40

30

20

10

0
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
Year of Travel
Figure XIV: Tourist Arrivals from Netherlands

90.0% of the Netherlands nationals visited India for holidays and sight seeing and about 9.0%
came for business.

13) Switzerland
During 2000, Switzerland occupied the 13th position among the top 15 tourist generating markets
for India. The arrivals grew from 14444 in 1981 to 31402 in 2000 at a compound growth rate of
about 4.3% per annum. Year-wise arrivals are given in Table 4. The following graph exhibits
yearly trends in the tourist arrivals from this country.

40
35
No. of Tourists ('000)

30
25
20
15
10
5
0
00
94
95
96
97
98
99
90
91
92
93
85
86
87
88
89
81
82
83
84

19
19
20
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19

Year of Arrival
Figure XV: Tourists Arrivals from Switzerland

The contribution of Switzerland tourists during 2000 to the total traffic to India was about 1.5%.
The air was predominant mode of transport for Switzerland tourists constituting 97.7% of the total
arrivals.
The male tourists constituted 63.7% in 2000. The dominated age group was 35-44 years
accounting for 28.0% of the total arrivals followed by the age group 25-34 years with 24.9%.
The maximum number of Switzerland tourists came to India during January to March 2000
constituting 33.9% followed by the period October to December 2000 constituting 27.2%. 91.8%
of the Switzerland nationals visited India for holidays and sight seeing and about 6.4% came for
business.

20
14) South Africa
South Africa occupies the 14th position among the tourist generating countries for India and
constituted about 1.2% of the foreign tourist arrivals in India during 2000. The arrivals grew from
9917 in 1981 to 26502 in 2000 at a compound growth rate of 5.3%. Year-wise arrivals are given
in Table 4. The following graph exhibits yearly trends in the tourist arrivals from this
country.
No. of Tourists ('000) 30
25
20
15
10
5
0
1
2
3
4
5
6
7
8
9
0
1
2
3
4
5
6
7
8
9
0
8
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
0
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
Year of Arrival
Figure XVI: Tourist Arrivals from South Africa

The peak period of South African tourists was the fourth quarter from October to December 2000
constituting 34.9% followed by first quarter from January to March with 30.1% during 2000.
98.6% of the tourists travelled by air and 1.4% by land routes.
About 51.7% South African tourists were males. The dominated age group was 35-44 years
accounting for 24.0% of the total arrivals followed by the age group 45-54 years with 22.4%.
92.8% of South African visited India for holidays and sight seeing and about 4.8% came for
business.

15) Israel
Israel occupy the 15th position among the tourists generating countries for India and constituted
about 1.2% of the foreign tourist arrivals in India during 2000. The arrivals grew from 2569 in
1981 to 25005 in 2000 at a compound growth of rate of 12.7%. Year-wise arrivals are given in
Table 4. The following graph exhibits yearly trends in the tourist arrivals from this
country.

30

25
No. of Tourists (in '000)

20

15

10

0
99
00
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
81
82

19
20
19
19

19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19

Year of Arrival
Figure XVII: Tourist Arrivals from Israel

21
 During 2000, about 92.6% of Israel tourists used air route to visit India and remaining 7.4% use
land route.
About 62.2% of Israel tourists were males. The age group 25-34 years accounted for 25.4%
followed by age group 45.54 with 22.4%.
The period from October to December was the most popular period of visit for the Israel tourist
constituting 34.7% followed by the months of January to March with 27.5%.
91.1% of Israel nationals visited India for holidays and sight seeing and 7.0% came for business.

1.4 FEATURES OF TOURISM MARKETS FOR INDIA

Table 5 gives the percentages of foreign tourist arrivals during the year 1999-2000. It indicates that
growth during first quarter was 4.8%, quarter ending June recorded increase of 10.6%, third quarter
ending September witnessed an increase of 6.1% and last quarter saw an increase of 5.6% over the
corresponding period of previous year. Winter months first and fourth quarter and summer months
second and third quarters recorded arrivals of 59.0% and 41.0%, respectively.
Table 5: Quarterly Break-up of Tourist Arrivals During 1999-2000
Tourist Arrivals Tourist Arrivals % Change
Period
1999 % Share 2000 % Share 2000/99
January-March 7,22,157 29.1 7,57,019 28.7 4.8
April-June 4,59,020 18.5 5,07,479 19.2 10.6
July-September 5,43,053 21.9 5,76,163 21.8 6.1
October-December 7,57,698 30.5 8,00,496 30.3 5.6
Total 24,81,928 100.0 26,41,157 100.0 6.4
(Source: “Tourist Statistics”, Market Research Division, Ministry of Tourism and Culture, Govt. of India, New Delhi.)

Table 6: Season of Tourist Arrival Quarterly

Year January-March April-June July-September October-December
1994 29.3% 19.7% 24.5% 26.5%
1993 25.7% 18.2% 23.2% 32.9%
1992 26.5% 19.2% 24.0% 30.3%
1991 23.8% 19.0% 24.1% 33.1%
1990 28.9% 19.1% 22.8% 29.2%
(Source: DoT, Government of India)

Table 8 gives the percentage of age groups of foreign tourists. It shows that the maximum arrivals are
in the age group of 25-34 and 35-44. Table 9 gives the proportion of tourists according to sex. It
shows that the number of women foreign tourists is increasing every year.
Table 7: Peak and Lean Months of Arrivals During 2000
Nationality Lean Month Peak Month
U.K. May December
USA September December
Sri Lanka June August
Canada May November
Australia May November
France May February
Germany June January
Japan June January
Malaysia July November
Italy June January
(Source: “Tourist Statistics”, Market Research Division, Ministry of Tourism and Culture,
Govt. of India, New Delhi.)

22
 Table 8: Tourist Arrivals According to Age Groups During 2000

Country of Percentage Above

Number
Nationality 64
3-14 15-24 25-34 35-44 45-54 55-64

U.K. 3,54,217 4.4 11.6 21.4 24.9 23.2 11.1 3.4

U.S.A. 3,09,309 7.5 12.0 18.9 24.9 23.9 10.6 2.2
Sri Lanka 1,28,444 5.3 10.3 21.4 29.0 20.2 11.1 2.7
Canada 98,259 2.8 7.3 24.3 30.5 24.7 8.8 1.6
Australia 90,456 2.9 9.4 23.9 29.7 25.0 7.8 1.3
France 89,565 3.4 10.5 24.1 28.6 22.8 9.1 1.5
Germany 84,989 2.1 11.0 23.6 28.7 21.6 11.0 2.0
Japan 79,167 1.7 14.4 26.3 25.3 21.6 8.9 1.8
Malaysia 57,927 5.6 9.3 22.8 30.4 20.8 9.2 1.9
Italy 52,529 1.8 9.5 24.3 29.3 22.6 10.4 2.1
Singapore 49,198 5.3 11.3 23.6 28.4 21.2 8.4 1.8
Netherlands 45,398 1.8 10.5 26.0 28.5 22.7 9.2 1.3
Switzerland 31,402 1.8 12.6 24.9 28.0 22.4 8.4 1.9
South Africa 26,502 4.3 14.0 21.9 24.0 22.4 10.7 2.7
Israel 25,005 1.3 20.3 25.4 19.5 22.4 9.2 1.9
Others 6,30,559 2.6 11.8 23.6 27.4 23.7 9.4 1.5
TOTAL* 21,52,926 3.9 11.4 22.6 27.0 23.1 9.9 2.1
* Excluding Pakistan and Bangladesh
(Source: “Tourist Statistics”, Market Research Division, Ministry of Tourism and Culture, Govt. of India, New Delhi.)

Table 9: Tourist Arrivals According to Gender During 2000

Percentage
Country of Nationality Number
Male Female
U.K. 3,54,217 60.6 39.4
U.S.A. 3,09,309 59.0 41.0
Sri Lanka 1,28,444 54.4 45.6
Canada 98,259 68.1 31.9
Australia 90,456 64.9 35.1
France 89,565 60.7 39.3
Germany 84,989 64.2 35.8
Japan 79,167 66.3 33.7
Malaysia 57,927 53.2 46.8
Italy 52,529 63.4 36.6
Singapore 49,198 55.2 44.8
Netherlands 45,398 64.6 35.4
Switzerland 31,402 63.7 36.3
South Africa 26,502 51.7 48.3
Israel 25,005 62.2 37.8
Others 6,30,559 64.8 35.2
TOTAL* 21,52,926 61.9 38.1
* Excluding Pakistan and Bangladesh
(Source: “Tourist Statistics”, Market Research Division, Ministry of Tourism and Culture, Govt. of India, New Delhi.)

23
Table 10 gives the data of tourist arrivals according to their purpose of visit during 2000. It clearly
indicates that India is able to establish itself as a holiday and leisure market (91.6%).

Table 10: Tourist Arrivals According to Purpose of Visit During 2000

Percentage

Employment
Holiday and
Sight Seeing

Conference
Business
Country of

Others
Study
Number
Nationality

U.K. 3,54,217 92.3 3.2 0.1 0.1 0.0 4.3

U.S.A. 3,09,309 92.0 3.0 0.1 0.5 0.0 4.4
Sri Lanka 1,28,444 96.8 0.3 0.1 0.0 0.0 2.8
Canada 98,259 91.4 1.5 0.2 0.1 0.1 6.7
Australia 90,456 87.3 6.5 0.2 0.0 0.0 6.0
France 89,565 90.6 3.6 0.1 0.1 0.1 5.5
Germany 84,989 91.8 5.0 0.0 0.0 0.0 3.2
Japan 79,167 89.6 2.8 0.1 0.1 0.1 7.3
Malaysia 57,927 95.7 0.4 0.4 0.0 0.0 3.5
Italy 52,529 92.4 4.3 0.0 0.0 0.1 3.2
Singapore 49,198 90.8 8.5 0.1 0.0 0.0 0.6
Netherlands 45,398 90.0 9.0 0.1 0.1 0.1 0.7
Switzerland 31,402 91.8 6.4 0.0 0.1 0.0 1.7
South Africa 26,502 92.8 4.8 0.0 0.1 0.2 2.1
Israel 25,005 91.1 7.0 0.2 0.0 0.1 1.6
Others 6,30,559 90.8 8.0 0.1 0.2 0.1 0.8
TOTAL* 21,52,926 91.6 4.9 0.1 0.2 0.1 3.1
* Excluding Pakistan and Bangladesh
(Source: “Tourist Statistics”, Market Research Division, Ministry of Tourism and Culture, Govt. of India, New Delhi.)

1.5 INTRA REGIONAL AND DOMESTIC MARKETS

We have seen earlier that intra regional tourist flows are on the higher side in Europe, East Asia and
America. In relation to India Table 11 gives you the figures of arrivals from neighbouring countries.

Table 11: Tourist Arrivals in India

January to December % Change
Country of Nationality
1999 2000 2000/99
Afghanistan 3,254 2,613 -19.7
Iran 11,655 10,596 -9.1
Maldives 3,312 5,167 56.0
Nepal 25,859 24,886 -3.8
Pakistan 42,538 47,063 10.6
Bangladesh 4,14,359 4,41,168 6.5
Sri Lanka 1,20,072 1,28,444 7.0
Bhutan 3,896 3,644 -6.5
Total 6,24,945 6,63,581 6.2
(Source: “Tourist Statistics”, Market Research Division, Ministry of Tourism and Culture, Govt. of India, New Delhi.)

When compared with the tourist flows in other parts of the world the number of intra regional tourists
visiting India is not very encouraging. Political conditions and relations have been playing major role

24
in this regard. However, it is time that efforts should be made to increase the tourist flows. The
SAARC nations have initiated measures in this regard and the tour operators, travel agents hoteliers
and airlines from these countries are joining hands not only to encourage intra regional tourism but
also to jointly sell South Asia destinations in other markets. South Asian Travel and Tourism
Exchange (SATTE) mart has been scheduled in India every year to showcase as sellers of the
combined tourism products. The Indian Tourism Industry is also targeting the markets in
neighbouring countries to increase the market share. This exercise is to be based on the various
approaches for Market Segmentation dealt with in Unit 4.
In this Section we provide certain information in regard to the domestic tourist market in India. The
Department of Tourism, Government of India had conducted a pilot survey of domestic tourists at 22
centres spread all over the country in 1981-82. Besides the findings of this findings of this survey not
much data is available except for the statistics of arrivals collected by some state tourism departments.
Based on this pilot survey Tables 12 to 21 provide you certain information about domestic tourists.

Table 12: State-wise Origin of Domestic Tourists (1981-82)

Total Male 67.2 Total Female 33.8
State Percentage State Percentage State Percentage
Maharashtra 15.6 Tamil Nadu 10.0 Madhya Pradesh 5.4
West Bengal 11.8 Karnataka 6.8 Delhi 5.0
Uttar Pradesh 11.3 Gujarat 5.8 Other States 28.3
(Source: “Tourist Statistics”, Market Research Division, Ministry of Tourism and Culture, Govt. of India, New Delhi.)

Table 13 Table 14
Travel Habits Average Length of Stay
Alone 17.5% Category Number of Days
With friends 18.70% 1. Metropolitan cities 7.6
With family 63.8% 2. Other Business Centres 4.3
3. Hill Stations and Beach Resorts 6.0
4. Historical Sites 2.8
5. Pilgrim Centres 2.4
6. All Centres 5.4

Table 15 Table 16
Expenditure Pattern Accommodation Used
1. Accommodation 34.4% 1. Hotels 57.2%
2. Food 23.8% 2. Private Lodges 19.4%
3. Inter City transport 10.4% 3. Dharamshalas, etc. 16.2%
4. Shopping 26.7% Tourist Bungalows, Youth
4. 6.2%
5. Entertainment 1.8% hostels, etc.

6. Miscellaneous 2.9% 5. Others 1.0%

Table 17* Table 18 Table 19

Modes of Transport Used Occupational Status Income Status (in Rupees)
1. Rail 49.7% 1. Business 42.9% Below 6,000 4.9%
2. Bus 38.6% 2. Profession 9.3% 6,000 – 10,000 20.4%
3. Taxi 6.4% 3. Service 36.3% 10,001 – 20,000 32.6%
4. Air 4.7% 4. Agriculture 5.6% 20,001 – 30,000 21.5%
5. Sea 0.6% 5. Students 4.0% 30,001 – 50,000 12.8%

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 Table 20 Table 21
Purpose of Travel Age-wise Break-up
1. Leisure 56.8% 1. Below 12 years 16.3%
2. Business 21.3% 2. 13 to 29 years 38.0%
3. Pilgrimage 13.5% 3. 30 to 55 years 40.3%
4. Others (health, education, etc.) 8.4% 4. Above 55 years 5.3%
(Source: (for Tables 13 – 21): “Tourist Statistics”, Market Research Division, Min. of Tourism and Culture, Govt. of India)
*
Does not include figures of cars and vans owned by tourists

The data provided in Tables 12 to 21 is slightly outdated as the year of survey in 1981-82. However,
certain trends which emerge through this data are relevant. For example:
• Age is an important factor with 30 to 55 years being the largest group followed by 13 to 29 years
(Table 21),
• Table 13 indicates that majority of domestic tourists travel with family,
• Leisure, business and pilgrimage remain the dominant purpose of travel (Table 20),
• People from business, service and professionals form the bulk of the tourist market (Table 18),
• Majority of tourists come from middle class and upper middle class (Table 19),
• Domestic tourists don’t go for long holidays (Average 5.4 days) as compared to foreign tourists
whose average length of stay in India is 28.4 days (Table 14),
• Rail travel remains the dominant mode of travel (Table 17).
Most of these trends also get reflected from the data collected at destinations by the local authorities.
For example, a survey conducted by the Tourist Office at Ranikhet (hill station in Kumaon hills of
U.P.) in 1987 gave following results:
• Occupation-wise 35.5% tourists were from government service, 24.7% from private sector, 19.4%
from business and 4.3% professionals, followed by 12.3% others,
• 90.3% tourists were from the age group 21 to 50 years,
• Region-wise 41% tourists were from West Bengal, 29% from north and 19% from Maharashtra
and Gujarat (Compare this trend with Table 12).
The results of the survey conducted by the Himachal Pradesh also gave similar indicators:
• Occupation-wise business had a share of 49.5%, professions 8.4%, service 28.4%, agriculture
4.6% and students 4.6%,
• Tourists belonging to Northern states were 89.75% followed by Western states 5.5% and eastern
states 3.1%,
• Again, income-wise the upper middle class share was 33.5% followed by middle class 58.0%, etc.
The tastes and trends among the domestic sector are also changing fast. For example:
• Adventure and Eco-tourism is picking up,
• Weekend travel to nearby destinations is increasing,
• Group travel by School children and college students is on the increase,
• Tourists are demanding special packages and services, particularly among the higher income
groups,
• Beside LTC travel by government employees, private sector employees are also getting travel
incentives,
• The number of honeymooners is increasing,
• Expenditure on shopping is increasing with a demand for ethnic products and handicrafts,

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• Pilgrimage is being mixed with leisure,
• Conventions tourism is picking up,
• Marriage groups have started using the services of domestic tour operators,
• The frequency of travel for leisure is going up with people taking more than one trip in a year, etc.
The importance of domestic tourism has been acknowledged by the government and efforts are being
made to provide better facilities for domestic tourists. Destinations like Goa are targeting the domestic
market during off-season. Domestic Tour Operators Association has also been formed with the aim
to highlight the problems in their area.
Domestic tourism markets are mainly concentrated in big and medium towns and the countryside
market which is yet to be explored.
Table 22: Estimated Domestic Tourist Visits During 1998 – 2000
State/U.T. 1998 1999 2000
Andhra Pradesh 38400356 42316882 48038204
Arunachal Pradesh 2989 1008 9932
Assam 13478 14336 891433
Bihar 8108223 8932921 9826213
Goa 953212 960114 976804
Gujarat 217661 11533087 11408281
Haryana 258133 243052 260442
Himachal Pradesh 4180366 4352863 4571129
Jammu and Kashmir 4878445 4984773 5393463
Karnataka 11996053 15902666 18000000
Kerala 4481714 4888287 5013221
Madhya Pradesh 7682832 4259086 4684995
Maharashtra 7183687 7542871 8297158
Manipur 87669 97523 105167
Meghalaya 136952 159730 169929
Mizoram 23998 27139 28221
Nagaland 28890 21041 13272
Orissa 2862028 2691841 2888383
Punjab 384066 232424 385682
Rajasthan 6403310 6675528 7374391
Sikkim 133158 138785 143093
Tamil Nadu 20452971 21079141 22981882
Tripura 235808 246507 271158
Uttar Pradesh 41567000 45723700 50296070
West Bengal 4591127 4699187 4737112
Andaman and Nicobar 74732 77448 85193
Chandigarh 444569 436350 486355
Daman and Diu 64218 67429 74172
Delhi 1496882 1571726 1728899
Dadra and Nagar Haveli 442425 445464 490010
Lakshdeep 2058 1927 1087
Pondicherry 406990 346178 482189
Total 168196000 190671014 210113540
(Source: “Tourist Statistics”, Market Research Division, Min. of Tourism and Culture, Govt. of India)

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If we look at distribution of domestic tourists according to region we see Southern Region attracted
maximum number of domestic tourist followed by Northern Region. This is quite evident from
Table 23.

Table 23: Estimated Region-wise Domestic Tourist Visits During 1998 – 2000
State/U.T. 1998 1999 2000
Northern Region 53209461 57544888 63122040
Southern Region 75814874 84612529 94601776
Eastern Region 15694536 16462734 17594801
Central and Western Region 22947345 31483579 33305811
North East Region 529784 567284 1489112

Total 168196000 190671014 210113540

(Source: “Tourist Statistics”, Market Research Division, Min. of Tourism and Culture, Govt. of India)

Check Your Progress

1) What are the various types of tourist markets?

……………………………………………………………………………………………………….
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……………………………………………………………………………………………………….

2) Discuss the existing tourist arrival trends in India.

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……………………………………………………………………………………………………….

1.5 LET US SUM UP

Every product/service produced by a manufacturer/producer needs a market for its consumption or as
a vice versa the consumer in order to satisfy his/her needs, needs certain products and services. Since
tourism products and services not only have peculiar characteristic feature, but travel tends and
demand also changes so fast that these tourist generating markets have to be studied carefully. Though
organisations like world Tourism Organisation and World Travel and Tourism Council publishes their
statistics relating to preferences and whims of tourists coming from these countries yet every
producer/manufacturer of this trade is advised to carry out his or her primary study of market he or
she wish to cater. It is only after this careful analysis of profile of tourists that you can produce both
tangible product and its intangible services. This Unit gives you an idea of world’s top tourist
generating markets and spenders so that you can know which part of world has potential market
segment for you. You have a wide variety to choose from. You can concentrate upon a niche market
or you may decide to cater to mass markets.

1.6 CLUES TO ANSWERS

Check Your Progress

1) Refer Sec.1.2.

2) Refer Sec.1.3.

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