Indian Tourism Industry Competitive analysis

Facts and Figures

China

Japan

Malaysia

Singapore

Factors of Judgement
Tourist Inflow - If considered in isolation, Indian
Tourism Industry is attracting more tourists than ever before and the number is constantly increasing but comparison between - foreign tourist inflow in India and other popular international destinations, presents a gloomy picture.

Revenues earned - according to The Travel and

Tourism Economic Research 2006, Indian Travel & Tourism Industry is expected to grow by around 8% between 2007 and 2016 taking the generation of economic value to US$128 billion.

Country Of Residence

1st Quarter 2011

Jan

2012 Feb

% Change Mar 1st Quarter

Europe
France Germany Italy

176,460
92097 14640 17933

59038
30692 4465 6242

59195
32330 4755 4498

53436
26604 5298 3566

171669
89626 14518 14306

- 2.7
- 2.7 - 0.8 - 20.2

UK

19189
18406 10904 279 344 3123 409 534 3563 1541 1014

5206
7254 3035 116 74 2735 123 203 1883 618 377

5757
7732 4800 111 147 1407 90 164 1333 559 335

7012
6991 3689 147 88 1431 119 185 1878 1122 400

17975
21977 11524 374 309 5573 332 552 5094 2299 1112

- 6.3
19.4 5.7 34.1 - 10.2 78.5 - 18.8 3.4 43.0 49.2 9.7

Asia
Indian Japan Malaysia China Singapore UAE

America
USA Canada

 Government is the backbone of the entire tourism industry and should support the private players Government charges high rates of taxes on the luxury and the star category hotels A luxury tax of 10% followed by VAT and other service taxes of approx. 10% (on food, beverages, etc.) makes hotel business in India very costly. Because the political environment is not conducive, Kashmir and North-East have suffered from tourism revenue despite the high potential they possess After years, government decided to privatize airports and now India can boast of good airports like IGI, Delhi and Rajiv Gandhi International at Hyderabad

Political

Economic
Growth in income levels in most developing nations and more idle cash with citizens of developed nations has increased tourism all over the world There have been more people coming into the country with more cash than ever before.
International tourists as well as domestic tourists have grown with time India has witnessed an amazing rise in the number of people travelling by air in the last decade Luxury hotels have witnessed a spurt of tourists preferring to stay

Strengths
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. Such diversity helps in selling niche areas of tourism like culture tourism, food tourism, herbal tourism, eco tourism, wildlife tourism and adventure tourism A wealth of archaeological sites and historical monuments.

List of countries with 20 or more World Heritage Sites

Country Number of sites 47

Italy Spain China France Germany Mexico India United Kingdom Russia United States

43
41

37
36

31
28 28 24 21

Weaknesses
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. India has one of the highest fatal road accidents in the world. A xenophobic attitude among certain sections of people.

No proper marketing of India's tourism abroad.

There are many places where the image of India is one of poverty, superstition, and diseases.

Opportunities
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. Selling niche areas of tourism owing to diversity of all sorts. Improved conditions of roadways could attract more people

Threats
Political turbulence or civil commotion taking place in neighboring countries that affect the image of entire South Asia

Aggressive strategies adopted by other countries like Australia, Singapore and Canada in promoting tourism.

Government Policies
Goals and Objectives
T increase the share in international tourist arrivals, which is estimated at o around 0.5 %. T have active participation and investment from private sector in o tourism industry. Special attention for infrastructure development in North East India and Jammu & Kashmir. T have improvement and environmental up-gradation of the protected o monuments. T give greater focus to rural tourism with the objective of eliminating o poverty and creating employment, with specific emphasis on the status of the women and to encourage tribal and local crafts. T impart a special thrust to eco tourism in all developmental activities. o

 To give due importance to domestic tourism, particularly tourism connected with pilgrimages. o T encourage Adventure Tourism for the new class of young tourists, having marked preference for adventure sports and distant destinations. o T effectively encourage special products that can attract tourists i.e. Yoga, Siddha , Ayurveda, Indian cuisine etc. T conduct effective training programmes for capacity building of o tourism service providers and to increase employability of existing tourism service providers. Training of State Police to act as " Tourist Police." o T actively participate in activities of international organizations related to tourism such as UN World T ourism Organisation and World T ourism and Travel Council.

Reform measure and policy initiatives

Travel & tourism industry in India is marked by considerable government presence. Each state has a tourism corporation, while the central government runs the India Tourism Development Corporation. In the year 2002, New Tourism Policy was launched. It was built around 7 mantras Swagat (welcome), Suchna (information), Suvidha (facilitation), Surakhsha (security), Sahyog (cooperation), Sanrachna (infrastructure) and Safai (cleanliness).

Some salient features of tourism policy are The policy proposes the inclusion of tourism in the concurrent list of the Constitution to enable both the central and state governments to participate in the development of the sector.

100% FDI permitted through automatic route.

Tourist Visa-on-Arrival Scheme for tourists from 11 countries viz., Singapore, Finland, New Zealand, Luxembourg , Japan, Cambodia, Vietnam, Laos, Philippines, Myanmar & Indonesia. 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.
In order to give greater impetus to development of tourism through public partnership, a National Tourism Advisory Council has been constituted. The public private partnership is also being encouraged in the form of capital subsidy. Several small schemes of 9th Plan have been merged into one scheme of project/infrastructure development for destinations and circuits to create world class tourism infrastructure in the identified destinations and circuits all over the country.

Tourism Finance Corporation of India Ltd. Helping Tourism Grow

TFCI provides financial assistance to enterprises for setting up and/or development of tourism-related projects, facilities and services, such as
Hotels Restaurants Holiday Resorts Multiplexes and Entertainment Centers Education and Sports Safari Parks Convention Halls Transport Travel and Tour Operating Agencies Air Service