An Integrated Approach For Promotion of Indian Tourism An Integrated Approach For Promotion of Indian Tourism

WHITE PAPER ON
AN
ANINTEGRATED
INTEGRATEDAPPROACH
APPROACHFOR
FORPROMOTION
PROMOTION
OF
OFINDIAN
INDIANTOURISM
TOURISM
Prepared for
THE BOMBAY CHAMBER FOR COMMERCE & INDUSTRY
BUSINESS CONSULTING GROUP

309/310 Mhatre Pen Bldg,
Senapati Bapat Marg, Dadar (West)
Bombay 400 028
Phone : (22) 430 1745, 437 1823, 431 3914
Fax : (22) 430 1655
E-Mail : bomoff@businessconsultinggrp.com
Website : www.businessconsultinggrp.com
About Bombay Chamber
The Bombay Chamber of Commerce & Industry is one of the oldest Chambers of
Commerce in the Country. The Bombay Chamber for over 165 years of its existence,
since its inception in 1836, has been serving Trade & Industry. It is well respected for
its balanced and studied approach to matters pertaining to development of trade and
industry, promotion of government – industry inter-linkages and for pursuing radical
trade policies.
Bombay Chambers’ membership comprises predominantly the most of large and

medium size companies from manufacturing and service sectors, leading banks and
financial institutions and the multinationals having their corporate headquarters in
Mumbai. The Chamber’s membership, therefore, contributes almost a quarter of
India’s Gross Domestic Produce in manufacturing and service industries.
Bombay Chamber of Commerce & Industry 1 An Integrated Approach for Promotion of Indian Tourism
INTRODUCTION
The Bombay Chamber seeks to reflect the views, perceptions and interests of their constituents in a
proactive and constructive manner. In recognition of its changing role, the Chamber initiated debate on
various important issues, such as future direction of economic reforms and integrated approach for
promoting of Indian Tourism.
The Tourism Committee of the Bombay Chamber of Commerce and Industry therefore, engaged the
services of Business Consulting Group to develop a White Paper on Indian Tourism
The objective of the White Paper is to generate action in the Government and the Industry in terms of
policy and operational initiatives that will help promote the growth of Indian tourism - inbound as well as
domestic tourism. Several reports have lamented the low share of India in world tourism and have made
meaningful suggestions. Nothing much has changed on the ground despite all that. It is expected that the
Bombay Chamber’s White Paper which that offers practical direction for change will spur action for change
and growth.
ACKNOWLEDGEMENT
Bombay
. Chamber would like to express its gratitude and sincere thanks to
the Sponsors of this White paper:
The Indian Hotels Co. Ltd.
Thomas Cook (India) Ltd

Kuoni Travel (India) Ltd.
BCC&I Trust for Economic & Management Studies
Secretariat: Oficial Travel Agents Consultants:

Bombay Chamber of Commerce & Industry Jet Airways India Pvt. Ltd. Business Consulting Group
Mr. L.A.D’Souza, Executive Director Mr. Raj Nair, Chairman
Ms. Kavita Sharma, Deputy Director Mr. Utpal Ashar, Consultant
ADVISORY COMMITTEE
Mr. R. K. Krishna Kumar, Managing Director, The Indian Hotels Co. Ltd. Mr. U.K. Mukhopadhyay, Secretary,Department of Tourism, Maharashtra
Mr. Ranjit Malkani, CMD, Kuoni Travel India Ltd. Mr. Ashish Kumar Singh, Managiong Director, MTDC
Mr. Adi Katgara, Chairman, Travel Corporation of India Mr. M.M. Jain, Asst. Director, Govt. of India Tourism Office
Mr. Ashwini Kakkar, MD, Thomas Cook India Ltd., Mr. B.B. Gomre, Asst. Director Govt. of India Tourism Office,
Mr. Lalit Sheth, CMD, Shree Raj Travels, Mr. Alok Awasthi, Jt. Director, MP Tourism Development Corporation
Mr. Reyaz Mama, Director, Ratan Mama Consultants Mr. Bimlesh Kumar, Regional Manager, UP State Tourism Development
Mr. Vishambher Shewakramani, Managing Director, Ras Resorts, Corporation
Mr. Anil Kaul, General Manager, The Oberoi Hotels,
Mr. Yogesh Dhawan, General Manager, The Regent Mumbai.
Mr. Rajan Divekar, Director, A.F. Ferguson & Co.,
Mr. P.J. Crasta, Sr. General Manager, Jet Airways India Pvt. Ltd.
Mr.Ajoy Misra, Sr. Vice President The Indian Hotels Co. Ltd.
( Chairman, Tourism Committee)
Mr. Zubin Karkaria, Sr. Vice President & COO, Kuoni Travel India Ltd.
( Co-Chairman, Tourism Committee)
CONTENTS
Executive Summary 1
Action Plan - Government 11
Action Plan - Industry 15
Why India Needs Tourism 18
Indian Tourism Industry - Growth Analysis 26
An Integrated Strategy
- Strategic & Operational Initiatives 37
- Influence & Facilitate Tourist Decisions 38
- Branding & Marketing Strategy 43
- Facilitate Tourist Arrival, Stay & Movement 49
- Tourism Infrastructure 56
- Pricing & Taxation 59
Organisational Mechanism for Development of Tourism 61
EXECUTIVE SUMMARY
Why India Needs Tourism 1
Indian Tourism Industry - Growth Analysis 2

- Factors Affecting Tourism Industry in India
An Integrated Strategy : Strategic & Operational Initiatives 4

Influence & Facilitate Tourism Decisions 5
Branding and Marketing Strategy 6
Facilitate Tourist Arrival, Stay & Movement 7
Tourism Infrastructure 8
Pricing & Taxation 9
Operational Mechanism for Development of Tourism 10
EXECUTIVE SUMMARY
Why India Needs Tourism

• Tourism is the largest sector in the worldwide exports of goods & services. At over $ 500 billion, it is larger than
automotive, chemicals, fuels and every other sector.
• Recognise Enormous potential of the Hotel, Travel, Entertainment, Transport and other allied industries.
As per WTTC, the travel and Tourism economy in India which includes all the above stated industries as well as supporting
industries currently account for 17.4 million jobs in India or 5.8% of total employment. This has a potential to rise to 25 million
jobs or 6.8% of total employment by 2010.
• Developing economies are benefiting more than developed economies because inbound travel dollars exceed
outbound travel dollars for them, but in India’s case the travel account balance per year has declined from $ 1.5 billion in
1997-98 to $ 0.9 billion in 1999-2000 because the increase in forex outflow due to outbound travel is much higher than
the increase in forex inflow on account of inbound travel.
• The total world tourist arrivals is 664 million tourists and the dominant destinations are Europe & America. South
Asia gets a very small share. Only some part of it can be addressed by India because it is a long haul destination for the key
countries and long haul tourism has only 18% share of the world tourism pie.
• International arrivals into any country depends upon the level of it’s International trade. India’s low level of
international trade limits its inbound tourism potential further. But its ability to fully exploit the tourism potential will depend
upon its ability to develop customer segment focussed strategies through co-ordinated approach by the government, hotel,
airlines, tour operators etc. Other countries like Thailand, Brazil, Turkey, etc. demonstrated this.
• Tourism industry can boost India’s GDP and forex earnings significantly
EXECUTIVE SUMMARY
Indian Tourism Industry - Growth Analysis

• International tourists arrival in India was 2.66 mn according to published statistics, growing at 4% CAGR over the past decade
but stagnated somewhat over the last 4 years. Though India’s earnings from inbound travel have shown a growth in rupee
terms, they have stagnated in absolute dollar terms during the past 4 years.
• In India, growing income over the years has led to an increase in consumption expenditure on recreation, education and
cultural services, transport and communication increasing from 24% to 28%. This and the growth in disposable income has
resulted in the total domestic tourist movement in India to more than double over a period of 7 years. Growth in disposable
incomes is also one of the major factors responsible for increase in the number of outbound tourists from India. The
number of outbound tourists will increase further, especially due to lack of availability of well developed and reasonably priced
tourist destinations within the country.
• Tertiary benefits of tourism are huge. The trickle down benefits of the travel & tourism industry on the economy go beyond
what is apparent. The Satellite Accounting figures of WTTC suggest that the $ 11.33 bn Travel &Tourism industry in India
(2000) supported a $ 23.8 bn Travel & Tourism related economy.
• Unless the Government and Private sector come together and develop a clear strategy, India will continue to be ignored as an
interesting long haul destination by leisure and business travelers and India will become, gradually one of the few developing
countries with a negative travel account balance.
EXECUTIVE SUMMARY
Factors Affecting Tourism Industry in India
• Leisure Tourists : India’s low leisure tourist numbers (inbound as well as domestic) could be attributed to:
- Inadequate Promotion & Marketing

- Poor Infrastructure
- Restrictive Policies
- Other Obstacles
• Business Tourists: India’s low business tourist numbers (inbound as well as domestic) could be attributed to:
- Inadequate Magnets to attract business groups and facilities for business conventions
- Attitude towards potential business investors
- Inadequate Promotion & Marketing
- Poor Infrastructure
- Restrictive Policies
EXECUTIVE SUMMARY
An Integrated Strategy : Strategic & Operational Initiatives
• Put Tourism on the Concurrent List of the Constitution of India

• Government should declare Tourism as a ‘Priority Industry’ like Information Technology
• Government should increase outlay on Tourism - India spends only 0.9% of GDP on Tourism compared to
4-9% in most other countries.
• Lay down a master plan to implement planned and phased development/ upgradation of infrastructure and
areas of tourism potential with private sector participation
• Policy initiatives for the same
• Aimed at improving the operational efficiency by focussing on infrastructural constraints and optimising
existing infrastructure with the available resources.
EXECUTIVE SUMMARY
An Integrated Strategy : Influence & Facilitate Tourist Decisions
• Focus on select target countries, which account for most of the outbound tourists and most of the world
tourism expenditure e.g. UK, USA, Germany, Japan, France, & Italy
• Need to have detailed market research data to identify socio-economic profile, their tourism needs, etc.
• For these countries deploy a country specific Push-Pull Strategy to influence their choice of holiday
destination
• Target Non Resident Indians (NRIs) too because they are large in number and they can influence non-
Indians to visit India
• Promotion through multiple channels. Several suggestions have been made in the report, ranging from
Indian restaurants, airlines to creation of an interactive website for Indian tourism
EXECUTIVE SUMMARY
An Integrated Strategy : Branding & Marketing Strategy
• Indian Tourism needs Branding - Several countries have specific themes to attract tourists and their entire marketing
strategy and offerings are in sync with the theme. e.g. Land of Smiles (Thailand), 1% water, 99% fun (Mauritius), etc. The
‘Experience India’ project is a step in the right direction. A theme could emerge out of it.
• Develop ‘National Tourism Logo’ that can be used by industry players in their communication and publicity materials.
• Introduce the concept of ‘Debit Cards’ like prepaid Phone cards to facilitate tourist spending.
• ‘Interactive website’ which could be made to pay for itself through fees from industry participants
• Quality information dissemination through contemporary & innovative means using multiple channels e.g. Select Indian
restaurants in target markets, airlines and other channels.
• Co-marketing/ Co-Selling with key travel operators
• Outsourcing promotion and marketing activities to private players based on target fulfillment criteria
• The product on offer need to be packaged for relevant customer segment in the target countries and the various
industry participants in the value chain must co-ordinate their efforts to provide a seamless and consistent experience which
is congruent with the theme.
EXECUTIVE SUMMARY
An Integrated Strategy : Facilitate Tourist Arrival, Stay & Movement
• Visa procedures are seen as a hindrance. Countries competing with India for tourists provide visa on arrival
(SriLanka, Maldives, Thailand, Nepal, Seychelles, etc.). India too should provide visa on arrival for
certain categories of tourists/ for specific duration.
• Reputed inbound travel operators to be permitted to bring in group of tourists without any visa, subject to
submission of guarantee by concerned operator
• By categorising the countries, India could do away/ facilitate visa requirements for certain countries
• Upgrade Tourism Infrastructure and address areas of prime concern (e.g. safety, security, language,
cleanliness, hygiene quality of tour guides, etc.) in order to make the tourists’ experience memorable
• Eliminate various irritants eg. discriminatory monument entry fee for foreign tourists
EXECUTIVE SUMMARY
An Integrated Strategy : Tourism Infrastructure

• The Government does not have adequate finance for the upkeep of the 3700 protected monuments and
10,000 unprotected monuments. The annual budget of Rs.156 crores amounts to a paltry sum of Rs.7600
per year per monument. Suggestions:
- involve the private sector for upgrading and maintaining the key monuments of tourist interest. 38
have been identified. The Government need not spend money at all on these, e.g. The Indian
Hotels Group has adopted the Taj Mahal
- use Government funds to upgrade other protected monuments
• Remove procedural bottlenecks for creation of tourism infrastructure. This has restricted the supply of
facilities, reduced competition and made India a more expensive tourist destination than several places in
S. E. Asia which offer superior facilities
• Since the infrastructure in the whole country cannot be upgraded simultaneously, identify and develop
certain areas as ‘Special Tourism Circles’ which can be tendered to bidders from the private sector
just like other infrastructure is, e.g. Telecom
EXECUTIVE SUMMARY
An Integrated Strategy : Pricing & Taxation
• It will help if the State and Central taxes are rationalised taking into account the fact that wide
difference between states create operational problems and high taxation which pushes up the pricing
dampens the the growth of tourism. Tourism is price elastic.
• Tourism earnings could be deemed as Exports to the extent of the Net Foreign exchange earned
• Tax Deferment in case of ‘Currency Fluctuation Reserve’ to the extent of Net Foreign Exchange
(NFE) earned can be provided to encourage investment in tourism.
EXECUTIVE SUMMARY
Organisational Mechanism for Development of Tourism

Create an apex professional body modeled along the lines of ‘NASSCOM’ could be called ‘National
Association for Tourism Promotion’ (NATPRO) or whatever. The Council of the ‘NATPRO’ could include
senior representatives of associations of all the tourism related industries.
‘NATPRO’, can co-ordinate and act as prime catalyst to promote the interest of the tourism and related
industry.
‘NATPRO’ would act as the advisory, consultative and co-ordination body for the tourism industry through
representatives in various committees of the Government of India including various Ministries like Ministry of
Tourism, Ministry of Finance, Ministry of External Affairs etc. ‘NATPRO’ will be a private sector initiative with
Government support.
ACTION PLAN
Action Plan - Government 11
Action Plan - Industry 15
ACTION PLAN - GOVERNMENT
A. Strategic Initiatives by the Government

1. Recognise Tourism as ‘Priority Industry’ for the Country
Government should declare Tourism as ‘Priority Industry’ like Information Technology
2. Put Tourism on the ‘Concurrent List’ of the Constitution of India
3. Give ‘Tourism’ the desired importance in economic and budgetary planning process
Government should increase outlay on Tourism - currently, India spends 0.9% of GDP on Tourism Government Travel &
Tourism Expenditure (%of the total GDP)
India 0.9 France 4.7

China 3.8 Sri Lanka 4.0
Spain 9.5 USA 3.9

Singapore 9.1 UK 2.9
China 7.4 Thailand 2.6
Malaysia 5.1 Germany 3.3
4. Recognise Enormous Employment Potential of the Hotel, Travel, Entertainment,

Transport and other Allied Industries.
As per WTTC, the Travel & Tourism economy in India which includes all the above stated industries as well as supporting
industries currently account for 17.4 mn jobs in India or 5.8% of total employment. This has a potential to rise to 25 million jobs
or 6.8% of total employment by 2010.
5. Lay Down a Master Plan to implement planned and phased Development/Upgradation

of Infrastructure and Areas of Tourism potential with Private sector Participation
Develop ‘Special Tourism Circuits’ (like Telecom circles)

ϖ Identify and create ‘Special Tourism Circles’ based on categorisation of regions depending upon selected parameters of
infrastructure development index and potential.
ϖ These areas could be tendered for infrastructural development to bidders from private sector, on similar basis as
‘Telecom circles’
ϖ Develop a master plan through a Special Area Development Authority constituted for the region identifying boundaries for
notification and development
ϖ Provide basic infrastructure in terms of roads, transport network, electrical grids, water supply etc.
ϖ Facilitate private investments through fiscal incentives, removal of restrictions preventing foreign ownership and leasing of
infrastructure through special legislation in these areas.
6. Taxation Policy
ϖ Introduce uniform taxation across the States and do away with multiple taxation.
ϖ Tourism Industry be deemed as Exports to the extent of the Net Foreign exchange earned
ϖ Tax Deferment in case of ‘Currency Fluctuation Reserve’ to the extent of Net Foreign Exchange (NFE) earned.
A fixed percentage of each years’ profit can be transferred to this reserve account, subject to a monetary limit on the
aggregate amount of such reserve not exceeding the Foreign Exchange exposure. The annual contribution to such reserve
should be tax deductible at the time of transfer of amount to reserve account. After a period of, say, 5 or 8 years, such
amount transferred to reserve account can be released on payment of tax.
B. Operational Measures as Components of the Strategy
1. Brand Indian Tourism Through Development of ‘National Tourism Logo’

Tourism needs Branding. There has to be a promise that appeals to the relevant population.
Therefore, India’s National Tourism Logo’ need to be developed which represents tourist interest in
India.
2. Develop an integrated long- term strategy for Marketing

2.
ϖ Idetifying countries for targeting,

ϖ Promoting India in the target markets identified based on a concept of promotion for India aimed at
creating an ‘Indian Tourism Brand’, through ‘Theme’ promotion
ϖ Develop ‘National Tourism Logo’
ϖ Adopt ‘innovative marketing strategy’ : ‘co-selling and co-marketing with key travel operators’
ϖ Introduce the concept of ‘Dollar Tourism Debit Cards’, similar to ‘pre-paid telephone cards’
ϖ Facilitate tourist arrivals, movement & stay as well as keeping the tourist occupied and interest.
ϖ Strategically plan to attract investments in infrastructure
3. Recognise the Need for an Organisational Mechanism - ‘NATPRO’

ϖ Support the formation of ‘NATPRO’ (National Association for Tourism Promotion), a tourism industry initiative based
on the NASSCOM.
ϖ Recognise ‘NATPRO’ as the single united voice of the tourism industry
Recognise NATPRO in the role of an advisory, consultative and coordinating body representing the tourism industry by
including representatives of NATPRO on the committees of various Ministries concerning the tourism industry
4. Relax Visa Requiremnts

ϖ Relax visa requirements and facilitate unrestricted tourist movement (domestic as well as inbound) involving removal of
obsolete laws, restrictions and licence permits
5. Other Initiatives
ϖ Address basic areas of concern of tourist like security, language, safety, hygiene conditions in the promotions as well as on
the ground.
ϖ Involve the private sector in the upgradation and maintenance of heritage sites.
ACTION PLAN - INDUSTRY
Lobby with the Government for Tourism to be given a Priority Status

ϖ Tourism is world’s largest Export Industry but South Asia, & India in particular, gets a very low share. India’s dismal
performance is due to variety of reasons. It needs examination and analysis why the implementation has been elusive and in
creating an enabling mechanism for proactively implementing the solutions.
Promote Establishing ‘NATPRO’ (National Association for Tourism Promotion)

NATPRO will be a tourism industry body, modeled on the lines of NASSCOM, as per the steps listed below:
- Draw up charter for ‘NATPRO’, complete all the legal and procedural formalities, develop the organisational framework required
and prepare a Business Plan
- A few visionaries from the travel and tourism industry should form an Interim Council
- Recruit top flight professionals and set up the elected / nominated Executive Council which replaces the Interim Council
- Draw up a detailed long term action plan
- Present Bombay Chamber’s White Paper on Tourism to the PMO and if possible to a group of key functionaries including
Ministers from all the relevant ministries.
- Through ‘NATPRO’, work in close interaction with the government in the role of an advisory, consultative & coordinating body for
the tourism industry. This could be through various activities aimed at fulfilling objectives laid down.
Creation of ‘Special Tourism Circles’

Since it is impractical to raise the quality of infrastructure across the entire country, this paper suggests the creation of ‘Special
Tourism Circles’ around anchor destinations. The ‘Special Tourism Area’ would have to be identified for development by
evaluating & categorising various regions based on laid down parameters indicating extent of infrastructure development and
potential for further development. Private sector may bid for infrastructural development, on a similar basis as ‘Telecom
Circles’.
Develop Interactive Web-site for information

ϖ To help tourists select India as an attractive destination, decide on itinerary, city specific details to decide on
specific activities, hotels to stay, the transport to book, etc.
ϖ Interactive facility to query and get information and action such as reservation etc.
ϖ To be made available in different languages of target countries.
ϖ Such an initiative to pay for itself by subscription fees from industry participants (similar to the concept of
‘Tata yellow pages’).
Maintenance & Development of Tourism Infrastructure

Actively participate in the maintenance & development of tourism infrastructure through investments in tourism infrastructure,
preservation of heritage sites by adoption etc.
Theme Promotion - ‘Experience India’ & ‘India Tourism Logo’

Prepare a promotion campaign based on the theme and provide support to the government for its promotion in target countries
Promotion of ‘Tourism Debit Cards’

ϖ Private sector may bid for exclusive rights similar to the concept of pre-paid telephone cards and credit cards
ϖ Participants may give token discounts
ϖ Cost may be recovered by way of advertisements
WHY INDIA NEEDS TOURISM
Tourism & World Trade 18

Travel Account Balance 19
India’s Travel Balance 20
World Tourism 21
India: Long Haul Destination 23
Tourism Arrival vs. International Trade 24
Tourist Arrival vs Country Size 25
Tourism & World Trade
Tourism has the largest share in the worldwide exports of goods and services
600 9
goods and services ($ bn)
532 525
% of total worldwide exports

503
Worldwide exports of
8 ❐ Tourism is one of the five

500
of goods and services

7.9 7.8 443 7 top export categories for
7.5
399 83 % of countries
400 6
6.6 344 331 worldwide and the main
5.9 283 5 source of foreign currency
300 5.1 for at least 38% of them.
4.9 4
4.2 ❐ For India, tourism earns
200 158 3
141 over $ 3 bn but is the 4th
2
100 2.3 largest forex earner after
2.1 1 gems & jewellery,
0 0 garments, software.
Automotive
Food
Computer & Office
Textiles & Clothing
Telecommunication
Tourism
Iron & steel

Chemicals
Mining products
Fuels
other than fuels

products
eqpt.
Source : World Tourism Organisation eqpt.
India should take a holistic view to encourage the growth of Tourism rather than view it as
separate pieces like aviation, hotels, airports, entertainment complexes, etc.
Travel Account Balance
Developing economies are benefiting more than developed economies because
inbound travel dollars exceed outbound travel dollars for them.
Increasing Travel Account Balance for Declining Travel Account balance

developing countries for India
1477
1250
$ million
897
1997-98 1998-99 1999-00
Source : Reserve Bank of India
India has not been able to benefit from this trend
India’s Travel Balance
Increase in the level of outbound travel has resulted in corresponding increase in

the forex outflow, the rate of which is much higher than the forex inflow due to
inbound travel.
1991 2000 % change
Total forex inflow (inbound tourism) $1842 mn. $3036 mn. 65%
Forex outflow (outbound tourism) $434 mn. $2138 mn. 393%
Net forex earned by travel industry $1408 mn. $897 mn. (36%)
India’s Net Foreign Exchange Earnings from Travellers
❑ Industry experts estimate that the travel account will become negative by 2002 if Source : Data Reserve Bank of India
no concrete steps are taken by the government to arrest this slide.
If proper steps are not taken, the travel account balance may soon become negative,
thereby becoming a drain of source of precious foreign exchange.
World Tourism
There is a slight shift from Europe & America ( developed countries) as a prime
travel destination towards developing countries, but …..
America Europe EAP Middle East South Asia Africa
100% 3.27 0.69 3.56 3.75 0.78 3.92 4.05 0.85

0.74 0.82 No. of Tourists (‘000)
1.96 2.18 2.31 2.4 2.58
11.94 14.28 13.73 14.62 ‘90 ‘95 ‘97 ‘98 ‘99

14.39
Tourist arrival (% of total)
80% Africa 14959 20155 23205 24937 26878
South Asia 3158 4200 4834 5219 5655
60% Middle East 8959 12353 14258 15281 17157

EAP 54598 81355 88254 87428 97158
61.84 40.4 60.03 60.29 59.31
Europe 282744 228382 371104 383777 394115
40% 92799 108939 116558 119939 122874
America
20%
ϖ East Asia Pacific has almost doubled the
number of tourists and taken 75% of the loss
18.85 18.84 18.5
20.3 19.27 suffered by Europe & USA
0%
1990 1995 1997 1998 1999
Source Data : World Tourism Organisation
ϖ Europe & USA have dropped from 82% to 78%
… East Asia Pacific region is the biggest gainer of this trend, largely because South Asia
(India in particular ) has not been proactive.
World Tourism
The total world tourist arrivals is 664 million and the dominant destinations are
Europe and America. South Asia gets a very small share.
International Tourist Arrivals 1999 International Tourist Arrivals

400 Share of World Trade (%) -1999
350 Americas
300 18.5%
Million
250
200
Europe
150 EAP
59.3%
100 14.6%
50 Africa
0 4.0%
Europe Americas EAP Africa Middle South South Asia Middle East
East Asia
0.9% 2.7%
Source : Data WTTC
• International tourist arrivals cover the number of arrivals of visitors and not the number of persons
Why does this happen to South Asia and India in particular ? There are 2 major reasons
India : Long Haul Destination
Firstly, India is a long haul destination for the key countries and long
haul tourism has only 18% share of the world tourism pie
Distance in km from India Share of long haul travellers in total

international traveller numbers
Long haul
USA 12,565 18%
Japan 6,758
Germany 6,306
UK 7,193
0 5000 10000 15000 Short haul

82%
Source : Data: World Trade Organisation /

World Tourism Organisation/ WWW
Does this mean that India cannot become a tourism major ?

Tourist Arrivals vs. International Trade
Secondly, international arrivals depend upon the level of international trade.

Ability to fully exploit the tourism potential will depend upon India’s ability
to develop customer segment focussed strategies
International trade
($ bn) (1999)
International trade ($ bn) (1999)
2500 Norway 4.481 117

USA
South Africa 6.253 64
2000
Brazil 5.107 116
1500
Turkey 6.893 93
1000 Japan Indonesia 4.7 94
Germany UK
500 Hong Kong Thailand 8.651 128

Korea
Singapore India 114
Thailand
China 2.48
0 India
0 20 40 60 0 2 4 6 8 10
Inbound international traveller (mn nos.) (1999) Tourist arrivals (1999) (mn nos.)
Source : Business Consulting Group Analysis data from World Trade Organisation/ World Tourism Organisation
ϖ *India needs to step up the pace of reforms ϖ Countries with similar international trade
to encourage global trade and international level have implemented focussed
investment in India integrated tourism strategies to exploit
the potential offered by international trade
ϖ Smaller countries with high international
trade have much high tourist traffic ϖ India has not done that
Tourist Arrivals vs. Country Size
The level of international trade and not size of the country is ❐ The number of travellers
coming to India is far
important. That is why smaller developed get more tourist arrivals lower than for many other
than larger developing countries like India, Brazil, South Africa, countries much smaller in
size than that of India.
etc. 80 Therefore it is argued that
France
India remains significantly
70 Source : Data : World Tourism Organisation / WWW under exploited as far as
Analysis : Business Consulting Group its carrying capacity is
Tourist Arrivals (in mns.)
60 concerned.
Spain
Developed countries USA ❐ Australia, China & South
50
Africa have recognised
this & have become very
40 aggressive in tourism.
Others like HK, Thailand,
30 China Malaysia have initiated
UK special efforts to woo
Developing tourists
20
Germany Countries
HongKong
❐ Dubai has gone further
10
Malaysia
Thailand
Brazil
and has a single
South Africa Australia
Singapore
Japan organisation called ‘Dubai
Indonesia India
0 Dubai Tourism & Commerce
Bahamas
0 2000000 4000000 6000000 8000000 10000000 12000000 Marketing’
Total country area (sq.kms)
India’s tourism strategy should recognise the importance of co-promoting

leisure and business tourism
INDIAN TOURISM INDUSTRY
GROWTH ANALYSIS
Inbound Arrivals 26
Indian Tourism (Value Growth) 27
World Tourism - Tourist Density vs Average Daily Spend 28
Tourism Statistics 29
Need for Strategy 30
Changing Pattern of Consumer Spend 31
Domestic Tourism 32
Indian Outbound Tourism 33
Satellite Accounting 34
Factors Affecting Tourists - Leisure & Business 35
INDIAN TOURISM INDUSTRY - GROWTH ANALYSIS
Inbound Arrivals - India
The total tourist arrivals in India was 2.66 mn according to published

statistics, growing at 4% CAGR over the past decade but stagnated
somewhat over the last 4 years
3000
CAGR 4.11%
Tourist Arrivals (000. nos)
2500
ϖ Tourist arrivals actually refer to
2000 all visitors to India.
1500 ϖ This number is way below the
1000 targeted number of arrivals of 5
mn. tourists by 2000-2001.
500
0
2
1
00
-9
-9
-9
-9
-9
-9
-9
-9
-0
0
91
92
93
94
95
96
97
98
00
-2
19
19
19
19
19
19
19
19
20
99
19
Source : CMIE
INDIAN TOURISM INDUSTRY- GROWTH ANALYSIS
Indian tourism (Value Growth)
Though India’s earnings from inbound travel have shown a growth in rupee
terms, they have stagnated in absolute dollar terms during the past 4 years
14000 Rs. Crore
3.75 θ This stagnation is partly due
12000 $ billion to business travel not
growing … political and
3.00 business environment has
Tourist earnings ($ bn)

10000 not been condusive
Tourist earnings (Rs. Crores)
and ,
8000 2.25
there have been events like
riots, earthquakes,
6000
insurgency in parts of India
1.50
which tarnishes the image of
4000 India from the leisure tourists
perspective
0.75
2000
Source : CMIE /GOI -

0 0.00 Department of Tourism
1991 1992 1993 1994 1995 1996 1997 1998 1999
World tourism : Tourist Density vs. Average Daily Spend
In addition to increasing inbound tourist traffic, there is also a need to increase
the average tourist spending
Tourist density (no
C Average spend
of tourists per sq
Singapore Country per tourist per
km of total country
120 day ($)
area)
High
( ≥ $ 100 ) Thailand India 41.89 0.75
Average spend per tourist per day ($)
100 USA
China N. A 2.82
UK
80 Thailand 101.65 5.04
Australia B USA 98.42 5.04
Medium Brazil
($ 50 to $ 100 ) 60 UK 81.23 105.14
India
South Africa 26.68 4.83
A (1998)
40 South Africa
(1998) Brazil 57.93 0.60
20 Malaysia N. A 24.05
Low Singapore 288.13 9664.86
(< $50)
0 Australia 64.91 0.58
Low (<1) Medium (1-5) High (> 5)
Tourist density (no of tourists per square km of total country area) Dubai N. A 24.02
Source : Data : World Tourism Organisation/ country tourism body site
India gradually needs to move from A to B diagonally on the graph to tourism revenues
Indian Tourism Statistics
Industry experts opine that India’s tourism strategy is based on unreliable and
misleading
Inbound Outbound
ϖ Of the 2.65 million arrivals the tourists are about ϖ Of the 3.9 million tourist departures, genuine
1.2 million (45% of which are leisure tourist, tourists are probably 0.4 million only. Of this
numbering around 0.7 million) group tours are probably as low as 50,000
ϖ One estimate is that the 2.65 million includes the ϖ Nearly 2 million are travelling out for their jobs in
following categories the Gulf, etc.
Million ϖ Government & business travellers classified as
tourists, Haj pilgrims, etc. probably account for
 Leisure tourists 0.7 1.6 million
 Non-tourist arrivals from 0.5 ϖ Actual forex outgo under BTQ in 2000 was $
Pakistan, Bangladesh & Nepal 379 m (RBI). If tourist departures were indeed
3.9 million, the average tourist spend would
 NRI returning to meet family 0.7
have been less than $ 100 per head per trip !
 Airline staff 0.25 ϖ RBI statistics of $ 2139 million forex outgo on
 Business visitors on tourist visas, outbound travel (often quoted by tourism related
backpackers, etc. 0.5 publications as outbound tourism dollars)
actually shows a breakdown by category of
2.65 travel. Business accounts for 60%
Source : Data : Field Interviews, RBI Publications,
India : Need for Strategy
Domestic tourism is essential to balance seasonality of inbound tourism
ϖ Being a long haul destination, the flow of inbound tourists is seasonal for India. Only
domestic tourism can balance that to make investment in infrastructure viable
ϖ Fortunately India’s domestic tourism is rising for reasons explained in the next two slides
India : Changing Pattern of Consumer Spend
In India, growing disposable income over the years has led to an increase in
consumption expenditure on recreation, education and cultural services,
transport & communication increasing from 24% to 28%* of consumption
expenditure
Item Increase / decrease
100% θ Although these
increasing
6.32 6.51 6.75 6.51 6.82 6.69 (1998-99 to 93-94)
activities,
3.05 3.15 3.23 3.07 3.40 3.53 Misc. Goods & + 0.37 conventionally
Private final consumption expenditure
11.26 11.60 services

11.69 12.18 13.30 13.66 considered the
80% preserve of the
3.38 3.86 3.98 3.85 Recreation, education +0.48
3.05 4.26 4.39
3.00 3.20 3.02
3.04 & cultural services classes, can
2.97
12.27 11.84 11.15 10.34 now be afforded
10.34 10.18 Transport & +2.4
60% 5.86
by the masses,
6.06 6.20 Communication
(% of total)
6.48 6.05 5.23 the

Medical & Healthcare +1.01 government’s
policy initiatives
have not
declining
40% Furniture, fuel and -0.08
power changed.
54.61 53.84 53.52 55.17 52.79 53.35 Gross rent, fuel & -2.09 θ * In the case of
20% power middle and
Clothing and footwear -0.83 upper income
groups this
presents a
0% Food, beverages & -1.26
much higher
1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 tobacco
share
Source: Data : CMIE
There are huge implications of this shift in consumption for the tourism industry
Indian Domestic Tourism
The growth in disposable income has resulted in the total domestic tourist
movement in India to more than double over a period of 7 years.
θ Drivers of domestic tourism *

176.08
180.00 CAGR 11.83% 168.20
ϖ Growing size of the Indian middle 159.88
160.00
class with increasing levels of 139.13 141.78
Tourist (mn. nos)

disposable incomes. 140.00 127.12
120.00
ϖ Increasing chunk of the salaried
100.00 90.00
class eligible for LTC (a tax free
component) 80.00
60.00
ϖ Stressful professional life and
40.00
frequent need for breaks
20.00
ϖ Pilgrimage
0.00
ϖ Migration for employment 1993 1994 1995 1996 1997 1998 1999
(* Figures are unreliable, but the trend is not questionable)
Source : Data : GOI - Department of Tourism
Indian Outbound Tourism
Growth in disposable incomes is also one of the major factors responsible for
increase in the number of outbound tourists from India.
ϖ Growing size of the Indian middle class with
increasing levels of disposable incomes.
ϖ Lack of good, developed domestic tourist CAGR 6.03%
destinations as well as high cost of quality
domestic travel 5.00
Outbound Tourist*
3.81 3.88
ϖ Indian psyche & the social prestige associated 4.00 3.46 3.73
3.06
(mn. nos)
with foreign travel 2.73 2.73
3.00
ϖ Influence of the increasing number of movies
2.00
shot overseas as also other channels in the
media 1.00
ϖ Aggressive promotions by foreign tourist offices 0.00
in India through road shows and regular
93
94
95
96
97
98
99
focussed trade promotions
19
19
19
19
19
19
19
ϖ With outbound charter being allowed by the (* These figures are unreliable as explained in Slide 18 but the
government, overseas travel will become real outbound tourist numbers have grown from a low base in
affordable to many more Indians. 1993 to about 4,00,000 in 2000)
ϖ Several good international destinations are Source : Data : GOI - Department of Tourism
cheaper than domestic holidays
The number of outbound tourists from India will go up further, especially due to lack of
availability of well developed and reasonably priced tourist destinations within the country.
Satellite Accounting
Not only is tourism per se important for an economy but the trickle down
benefits of the travel & tourism industry on the economy go beyond what is
apparent . As a whole, they are too vast to be ignored
Multiplier effect of tourism:
❑ The secondary &
Transport tertiary effects of
Accommodation tourism in the form of
Travel & Catering increased purchases of
T&T
Tourism Entertainment Indian goods, benefits
Economy
industry Recreation to the transport industry
and other travel related service etc, which in turn drives
the demand in the
Food/ beverage supply, Laundry manufacturing sector &
Services, Oil/ Gas supply, Wholesalers, creates employment.
Printing/ Publishing, Utilities, Financial Services, Sanitation Increased employment
Services, Furnishings & Equipment Suppliers, Security further drives demand
Services, Rental car, manufacturing, Transportation due to higher
Administration, Tourism Promotion, Ship Building, Aircraft disposable incomes.
Manufacturing, Resort Development, Glass Products, Iron &
Steel, Computers, Utilities, Concrete, Mining, Plastics,
Chemicals, Textiles, Metal Products, Wood
Source: WTTC
The satellite accounting figures suggest that the $ 11.33 bn. T&T industry in India (2000)
supported a $ 23.8 bn. T&T economy
Factors Affecting Indian Tourism - Leisure Tourists

India’s low leisure tourist numbers (inbound as well as domestic) could be
attributed to 4 major reasons
Inadequate Promotion Poor Restrictive Other Obstacles

& Marketing infrastructure Policies
ϖ Poor image ϖ Inadequate in quantity due to ϖ Cumbersome visa ϖ Perceived low safety, cleanliness,
ϖ Inadequate targetting low investment by Government procedures reliability
(country & type of tourist) and private sector, ϖ Interstate movement ϖ Obstacles for tourists (visas,
ϖ Concept (diffused & no cumbersome procedures for of tourist vehicles bookings, language, etc)
continuity) creating infrastructure, etc. ϖ Bureaucratic ϖ Inadequate entertainment and
ϖ Poor co-ordination between ϖ Inadequate quality due to lack processes for getting shopping opportunities
various marketeers and of focus on customer and poor clearances to set up ϖ Poor upkeep of tourist attractions
Government co-ordination infrastructure ϖ Discriminatory pricing of historical
ϖ Inadequate information on ϖ Poor VFM due to high taxation ϖ Hurdles for foreign sites for foreigners
several tourist destinations and high price caused by low ownership of tourism ϖ Exploitative attitude of some
ϖ Potential marketing channels competition infrastructure service providers
not exploited ϖ Poor functioning of Railways, ϖ Hurdles in private ϖ Poorly trained guides, lack of
ϖ Major fun magnets for Government owned airlines, sector management of signages/ information
tourists (e.g. Disney etc. in etc. heritage sites (Taj disseminating mechanism
USA, France, Japan, etc. ϖ Lack of well co-ordinated top Mahal is an exception) ϖ Sudden changes in tariff and taxes
which draw tourists by the quality tour packages (intra & ϖ Prohibition laws in affecting even pre sold tours
thousands) have not been intercity) with door-to-door certain states
created in India service
Source: A listing of issues that came out in Focussed Group Discussions with experts in the tourism industry
Factors Affecting Indian Tourism : Business Tourists

India’s low business tourists numbers (in bound and domestic) could be
attributed to
Inadequate magnets to Inadequate facilities Attitude towards The 4 reasons listed

attract business for business potential business for leisure tourists
groups conventions investors
ϖ Very few Trade Fairs to attract ϖ India is not equipped to ϖ Barring a few notable ϖ Same as for leisure tourists
business tourists (except a few handle very large exceptions, the
at Pragati Maidan) unlike, say international business business traveller to
for example, Germany which conventions unlike most parts of India
holds 2/3rd of all major destinations in USA, faces a disinterested
international trade fairs & Europe & East Asia bureaucracy,
attracts 1.8 mn tourists from Pacific inadequate
outside Germany alone. ϖ Even for smaller information, an
ϖ Lack of nightlife & conventions, facilities attitude that smacks of
entertainment exist only at a few 5 Star being given permits as
hotels in a few locations a favour and not as a
ϖ Since India remains largely welcome guest
isolated from global trade (non- ϖ Other competing
convertible currency, low countries in Asia are able
foreign trade, severe to offer better value
restrictions even for transit of packages
goods, etc.) international
business tourists do not need Source: A listing of issues that came out in Focussed Group Discussions
to visit India with experts in the tourism industry
AN INTEGRATED STRATEGY
Strategic & Operational Initiatives 37
Influence & Facilitate Tourist Decisions 38
Branding & Marketing Strategy 43
Facilitate Tourist Arrival, Stay & Movement 49
Tourism Infrastructure 56
Pricing & Taxation 59
AN INTEGRATED STRATEGY: STRATEGIC AND OPERATIONAL INITIATIVES
Tourism as a Priority Industry
Strategic & Operational Initiatives
Operational initiatives Strategic initiatives

ϖ Operational measures aimed at improving ϖ Government should declare Tourism as a Priority Industry
the operational efficiency by focussing on as Software industry
infrastructural constraints & how best can the
ϖ Put Tourism on the Concurrent list of the Constitution of
existing infrastructure be better utilised with
India
the available resources
ϖ Government should increase outlay on Tourism: India
ϖ Tours to be packaged for relevant customers
spends only 0.9% of GDP on Tourism as compared to 4-
as one complete experience
9% in most other countries
ϖ Brand Indian Tourism through development
ϖ Lay down a master plan to implement planned & phased
of ‘National Tourism Logo’
development / upgradation of infrastructure & areas of
tourism potential with private sector participation
ϖ Policy initiatives for the same aimed at improving the
operational efficiency by focussing on infrastructural
constraints and optimising existing infrastructure with the
available resources
AN INTEGRATED STRATEGY : INFLUENCE & FACILITATE TOURIST DECISIONS
Target Countries & Needs

India should focus marketing efforts on just six countries
International tourism expenditure % (1998)
Country target USA

12.7%
ϖ There is a clear need for focus on a limited number of Germany
countries because India’s financial resources for 10.6%
marketing are limited. Others Japan
6.5%
45%
50.0%
ϖ India should focus on just six countries (USA, UK, UK
Germany, Japan, France and Italy) which account for 7.3%
France
53% of the outbound tourists and 45% of the world Canada Italy 4.0%
tourism expenditure. That will be all long haul tourists. 2.4% 4.0%
Netherlands
To counter balance their traffic seasonality India needs 2.5%
to look for load from some special segments of those International tourism supply % (1998)
countries and other source countries.
USA
Push-Pull Strategy 14.8%
ϖ In the target countries, India needs to have a ‘push-pull’ Others

Germany
strategy which will pull potential tourists to travel agents 41.6%
12.4%
and tour operators and incentivise the travel trade to Japan

push for India since they play a big role in helping a 53%
Canada 7.6%
tourist to decide on the destination, itinerary, planning, 2.8% UK
8.5%
etc. Netherlands France
2.9% Italy 4.7%
Source Data : World Tourism Organisation 4.7%
We need a clear and distinct strategy for each country

ϖ In those few countries there is a clear need to have detailed market research data which identifies the
consumer segments for which a long haul travel will be relevant, understand the socio-economic profile,
demographic profile and tourism interests and habits of each segment. Without that marketing efforts
could go awry.
ϖ For instance: USA American
American outbound
outbound tourists
tourists
Others Religion/ pilgrimage
East Asia Govt./Military 2% Manager/ Executive 2% VFR
29% 2%
31% 39%
Asia Study/ teaching
2% Craftsmen/ factory 2%
3%
Middle East Convention
Clerical/ sales
5% conference
4%
2%
Africa
2% Homemaker
5%
Professional/ technical
Central America Europe 38%
Student Business
3% 51% 6% Retired
South America 28%
9%
8% Leisure/ recreation/
holiday
Destination Country Occupation
Purpose 27%
Source : Data : Travel Industry Association of America
ϖ These statistics suggest that 36% visit East Asia Pacific, South Asia and the Middle East but only 2% head
for South Asia. Would it be possible to club India with a trip to East Asia (29%) through suitable incentives
and marketing? Many of them travel in Aug / September when it rains heavily in many parts in India. Which
destinations should India market in August / Sept? Others travel around Christmas, New Year.
Each of India’s target countries will have its own characteristics and each
relevant segment within it will have its own idiosyncrasies. Example : Japan
Japanese
Japanese outbound
outbound tourists
tourists
Other over 60 years Individually Arranged
50-59 years 12% 29%
New Zealand 23% 0-4 years
16%
1% 3%
Korea
Australia Group Travel
10% 10-19 years
5% 11%
5%
China
Europe 6% Others
13% 40-49 years 7%
Taiwan 17%
5% 20-29 years
Hong Kong
28%
5%
USA 30-39 years Package Tours
32% 19% 53%
Destination Country Age Profile of Outbound tourist Type of Travel

Source Data : www.tradeport.org
ϖ Most Japanese travel around end Dec - early Jan, the Summer OBON (around August 15) and the Golden week (April - May).
They take short vacations and head largely to Korea, Taiwan, Hong Kong, China and USA (where Hawai is the key
destination). The rest of America and Europe have a good mix of leisure, student and business travel. India neither fits in as
a leisure spot nor a business magnet. The Japanese traveller is not as religious as he is made out to be. If India has a
Buddhist trail to offer, the target is probably the ‘over 60 year old’ Japanese who account for 12% of the Japanese outbound
tourist. What are this segment’s specific needs for mode of travel, type of experience, food requirements, cleanliness
requirements, tour guide and other facilities? Unless this is known, marketing India to Japan may be a waste of money
A clear strategy is required for the other target countries as well
ϖ The Germans, French and Italians are known to be travel-friendly and may seek warm
destinations in July-August. Neighbouring countries like Maldives and Sri Lanka have
exploited their beaches to lure tourists from these destinations with well co-ordinated
strategies. India for some reason, has restricted tourist arrivals in the Lakshadweep which is
next door. Barring Goa, the much talked about beautiful coast line brings in more drift wood
than tourists. The beaches of Thailand, Malaysia and Indonesia take in tourists by the
millions, whereas the Andamans and Nicobar remain largely ignored …. and probably
intentionally, due to the Governments perceived security threat. We need to realistically
assess whether islands around India are particularly vulnerable, whereas it is not so for the
rest of the world.
India should focus on relevant consumer segments in a few focussed countries and
offer all the attractions that are relevant to them based on serious market research
Target NRIs
Persons of Indian Origin should be targeted

• It is estimated that there are over 20 million NRI’s the Location
Location of
of Persons
Persons of
of
world over . Only 3.5% travelled to India last year, even if Indian
Indian Origin
Origin
it is wrongly assumed that there are no multiple trips. The
1987 statistics reveal that of the 12.5 million Indians living
abroad, two thirds were in other Asian Countries who Middle East
would tour India without much prodding if there are 8.5%
interesting and economical tourist packages.
Africa
• It is significant that there may be more than 3 million 13.4%
Indians living in the 6 target countries for world tourism.
They are known to travel like others living in the country of Oceania & Asia
residence, to various parts of the world. There is a case Indonesia 53.5%
for motivating them to visit their roots through a targetted 3.7%
marketing strategy because anecdotal evidence suggests America
that the second and third generation NRIs have little desire 13.1%
to travel to India due to loss of roots. Europe
7.7%
• If they travel to India and have a good experience, they are
likely to become better brand ambassadors for Indian
Source Data : Statistical Outline of India 1992-93
tourism in their country of residence than many others.
The opportunity exists.

AN INTEGRATED STRATEGY : BRANDING & MARKETING STRATEGY
Product Packaging
Tours should be packaged for the relevant customers as one complete
experience.
• India no doubt, has several good hotels, at least one good domestic airline, one good rail
experience for tourists, many good beaches, several outstanding historical monuments,
entertainment spots, several brilliant people in the travel & tourism industry with good
ideas, a well intentioned tourism ministry. But put these in the chain from travel booking to
visit to return to home country & what you get is a mixed experience, with service gaps,
joy killers and some delightful movements. Even to connect these islands of excellence
requires someone to co-ordinate all the linkages. This need not be the case if a tour is
understood to be a complete experience and is served as a one single continuum.
The Kerala package offered by a five star hotel group and a private airline is an
outstanding example of what can be done to create a great tourism experience for
domestic or international tourists.
Branding
Indian tourism needs Branding that will reflect the experience that the
tourist can expect
ϖ Tourism needs branding no less than any consumer product. There

has to be a promise that appeals to the relevant population. There Thailand - “Land of Smiles”
has to be a theme/ logo that is relevant and one that can be actually
experienced during the visit. Several countries have adopted certain Malaysia - “Malaysia truly Asia”
themes and positioned tourism in their countries in a manner that
attracts the target segments. See the box alongside. Mauritius - “1% water, 99% fun”
ϖ ‘Experience India’ a joint initiative of the private sector and the Maldives - “The sunny side of life”
Government appears to be a step in the right direction. A theme for
marketing India could emerge from it. The ‘Maharaja’ logo could Dubai - “Discover Dubai”
represent the tourists’ experience in India. Srilanka - “A land like no other”
ϖ Various organisations in the tourism business should be allowed to
Seychelles - “Seychelles magic”
use the Indian Tourism Logo provided they adhere to certain norms
and policies that are laid down.
Multi-Channel Approach
Multi-channel approach to promotion of the concept of Indian tourism using a
unified theme for promotion
Channel Approach to promotion/ information dissemination
Dollar Debit Cards Debit cards can be issued to Foreign tourists on payment in foreign
exchange by approved agencies e.g. Forex Dealers, select tour
operators, etc. ‘Debit Cards’, to be acceptable for all tourism related
purposes - air, train, hotel and restaurants, monument entry, shopping
etc. Companies who participate, will have to provide the necessary
infrastructure to handle debit cards, give token discounts/ facilities and
portray the ‘Tourism Logo’ at their company premises. A booklet giving
names of all participant agencies will have to be provided to the tourists
on purchase of’ ‘Debit Cards’. The cost of this ‘Debit Card’ should be
recovered through advertisements
Select Indian restaurants Popularity of Indian cuisine overseas is undisputed. At peak hours there
in target markets should is considerable waiting time at a majority of these restaurants. This
be tapped waiting time could be utilised to promote India as a tourist destination by
screening of theme videos & disseminating information through
information kiosks. This also ensures that the promotion is addressed to
the right audience.
Concept of co selling / ϖ Underwriting the media costs of promotion. This would not only incentivise
co marketing with key the tour operators to promote India as a destination amongst the tourists but
operators also help depict India much more prominently in the media (brochures,
information booklets, billboards etc.)
Airline Schemes ϖ Identifying destinations of high tourist traffic in the same region as India and
pursue tourists coming to these destinations to come to India through
attractive fares, targeted promotions. Plan joint charter flight with neighboring
SAARC countries like Nepal, Sri Lanka, Maldives on one leg of their journey
and take Indian destinations like Goa, Agra, Jaipur on the other.
ϖ Offer attractive fares for tourists visiting South East Asian countries (could be
to visit Andaman & Nicobar islands)
ϖ Plan joint promotional initiatives with Indian and other willing carriers &
promote India as a tourist destination.
Outsourcing ϖ Outsourcing promotion and marketing activities in the target countries to
promotion and private players with periodic targets to be fulfilled by the agency. This would
marketing activities in also help provide much needed accountability towards fulfillment of targets. It is
the target countries not practical to expect the Government of India’s Tourism Department alone to
get the required reach
World Wide Web ϖ An interactive website that carries the India brand, conveys the proposed theme,
site for information and helps tourists with all kinds of information which will help a tourist from all the
and action relevant segments in the target countries to know all that is relevant to select India
as a destination, decide on the itinerary, city specific details to decide on the
specific activities, the hotels to stay in, the transport to book, the shopping that can
be done, the entertainment available, etc. Interactive facilities to query and get
information or action such as reservation, etc. There are websites in India which
partially meet these requirements or deal with just one state. A comprehensive
effort is called for, with hyperlinks to the service provider sites. It should be
available in the languages of the target countries. Such an initiative could be
made to pay for itself by subscriptions fees from industry participants.
PIO’s/ NRI’s in ϖ PIO’s/ NRI’s can serve as goodwill ambassadors for the country. With the
overseas increasingly large number of Indians overseas and their knowledge about the
countries country, they can be a good source of promotion. The expatriate community is very
strong overseas. They have a lot of community activities and celebrations during
various Indian festivals. These can be used to promote India as a tourist destination
amongst the people interested to know more about India and its culture.
Expatriates in India ϖ Expatriates could be a very good source of promoting India as a tourist
(includes foreign destination to a large overseas destination. For this, the domestic tourist
consulates in India) destinations should be promoted aggressively within the expatriate community.
Indian consulates ϖ Indian consulates abroad could be used as a medium of information
abroad dissemination / promotion
Business Travelers ϖ Business travelers, if provided with a good experience, could serve as an
visiting India excellent word of mouth publicity for India.
Media/ sports ϖ India has always attracted celebrities from the west who are in search of
celebrities spiritual solace. These people could be not only targeted for promotion but also
they could be used as a channel to promote India as a tourist destination.
Incentivising tour ϖ Tour operators could be incentivised lucratively for selling packaged tours to
operators India
Mass media (TV, ϖ Establishing contacts with TV program producers, travel writers, adventure
radio, movies etc) societies, religious groups, film producers (to encourage them shoot in India)
AN INTEGRATED STRATEGY : FACILITATE TOURIST ARRIVAL, STAY & MOVEMENT
Facilitate Visa Issuance
Having identified target countries remove obstacles
Situation Suggestions
ϖ Indian missions are located in a ϖ Visa on arrival for certain

few cities in the overseas categories of tourists/
countries. Tourists willing to tour countries at least for a
India need to get a visa for limited duration of stay.
which either they have to
ϖ Facilitate entry of foreign
personally travel to the city
tourists, visiting India in
where Indian mission is located
large groups, by allowing
or send their passport to the
inbound travel operators to
Indian mission through post or
bring these tourists into
some other form of delivery. For
India without any visa
example a tourist in Manchester
requirements on the
has to either send his passport
guarantee of the tour
to Edinburgh or personally go
operator. This facility can be
there in order to obtain a visa.
extended only to reputed
ϖ Individuals are not very tour operators with an
comfortable parting with their established track record.
passports.
Visitors/ tourists of all nationalities (except Nepal) require visas for visiting India
Nationality Nepal India Sri Lanka Maldives # Bangladesh Singapore Japan Canada Greece UK Australia * USA
@
American Y Y No No No No No No No No Y NA
Australians Y Y No No No No Y No No No NA Y
British Y Y No No Y No No No No NA Y No
Canadian Y Y No No No No No NA NA No Y No
European/ Y Y No No No No No No NA No Y No
Other
Indian No NA Yes No Y Y Y Y Y Y Y Y
Bangladesh Y Y No No NA No Y Y Y Y Y Y
Nepal NA No No No No No Y Y Y Y Y Y
Singapore Y Y No No No NA No No No Y Y Y
Sri Lankan Y Y NA No Y No Y Y Y Y Y Y
Japanese Y Y No No Y No NA No No No Y No
* Australia is ETA - Electronic Travel Authority

# Visa on arrival on presentation of health papers
@ For items marked ‘No’ visas are issued on arrival at Colombo Airport
Source : WWW
Visa on Arrival is available in countries like Bhutan, Sri Lanka, Nepal, Singapore,
Seychelles, Maldives, Macau, Thailand, Turkey, Taiwan, etc. who are competing with
India for tourists
By categorising countries, India could do away/ facilitate visa requirements
without compromising security concerns
Country Category Visa Criteria
Identified markets for promoting India as a tourist

Category 1 destination in terms of tourists interest, disposable No visa requirements
income, historical data e.g. USA, select European
countries, Japan, etc.
Visa on arrival based on laid
Category 2 Tourists from countries seen as a potential hazard down criteria (presentation of
from the point of health or some other factors e.g. required documents,
African countries, Middle East, etc. certificates, etc.)
Stringent visa requirements in
Category 3 Tourist from countries seen as a potential risk in the interest of issues like
terms of illegal migrants, national security, e.g. national security, illegal
Afghanistan, Pakistan, Bangladesh etc. migration, etc.
Remove Obsolete Laws Without Compromising Security
Obsolete laws & restrictions obstruct tourism.
Indian visitors have to procure permits to go to some parts of the North Eastern region due to
the enforcement of ‘Inner line permits (ILP’s)’ in some hilly states.
Restricted area permits for foreign tourists to be procured in addition to visa requirements.
Restrictions like prohibition of photography on dams & installations like All India Radio (AIR)
stations could be done away with after proper assessment of security & related issues.
The recent rule requiring Indian citizens to report their foreign visitors to the nearest police
station if they stay more than a certain number of hours is another case of unrealistic policy.
Infrastructure - Soft Issues
Need to address negative impressions about India
ϖ Security ϖ It is very important for India to deal with problems and also address misinformation in their
promotions too.
ϖ Language
ϖ Lack of information could result in the tourist decision being influenced by adverse media reports which may
ϖ Quality of talk about some trouble/ calamity in some state of India which may not even be of concern to the tourist
tour guide since he may be visiting some other state albeit within India. The fact that India’s cultural & geographical
ϖ Safety diversity is so vast that some trouble happening in Kashmir or some natural calamity in Orissa does not in
standards any way affect the tourist planning to visit Rajasthan.
ϖ Quality of ϖ The international image of India is that of a country that epitomies poverty, poor hygiene & low safety
lodging & standards.
boarding ϖ There is always a fear within the tourists that they would contract some disease when they visit India. This
ϖ Cleanliness needs to be countered.
& hygiene ϖ Stray experience of being taken for a ride gets blown out of proportion. This needs to be curbed but that
conditions alone does not keep tourists away from India. How does Italy with a similar reputation, get tourists?
Maintenance of Heritage Sites
Like Italy and Greece, India too, can attract tourists to our monuments /
heritage sites
Ground realities/ facts/ Issues : The need
ϖ India has 3700 protected monuments and ϖ Restoration and maintenance of world heritage
10000 unprotected monuments. structures and the surroundings like approach roads,
non ticket areas etc.
ϖ Archaeological Survey of India. Does
conservation, illumination, penetration, ϖ Ensure that people other than tourists (beggars,
creating public facilities, and publications/ urchins, encroachers etc) do not get inside the
promotions. ASI’s annual budget is Rs. monument premises. Provide a safe and secure
156 crores i.e. Rs. 7600/- per monument environment to enable the tourists to have a
per year (after providing for salaries and memorable experience inside the monument.
expenses of the ASI). This amount is not at
ϖ No amount of increase in gate collections will solve
all sufficient to fulfil even the basic
the problem
preservation and maintenance of
monuments and sites. ϖ 38 sites have been identified. Get the private sector
to participate in funding (and managing the property
if possible)
Source : Data : India Today 9th July, 2001
Preserving Heritage Sites
Preserving the heritage of India closer government private sector

participation.
Action Plan :
List of 38 sites prepared, which are in need of fiscal support. Sites include the likes of Ajanta/ Ellora, Fatehpur
Sikri, Hampi, Red Fort, Alchi monastery Ladakh. Start action with private sector help quickly
Govt. benefits from increased tourist turnout :

- Benefit to the local economy and the country as a whole. An ideal way to solve out regional economic balance
- Prevent heritage property from falling to pieces
- Can avail of best possible advice and services of experts in the fields of restoration and conservation
Private sector benefits :

- Guarantee mileage at the site like signages, etc.
- Use of monument’s image in their advertisements
- Private players have a say in the management of their money
- Corporate and individual donations under ‘Adopt a Monument’ scheme, eligible for full income-tax exemption
as also other benefits which may be site or project specific
Source : Data : India Today 9th July, 2001
AN INTEGRATED STRATEGY : TOURISM INFRASTRUCTURE
Strategic Measures - Special Tourism Circles
Since it is impractical to raise the quality of infrastructure across the whole
country ‘Special tourism circles’ could be developed around anchor tourist
destinations and promoted under a unified theme of India.
ϖ Specific products, ϖ ‘Special Tourism Circles’ should satisfy the needs of a variety of needs of
(represented by target tourist interest groups by offering a mix of conventional & contemporary
destinations) covering destinations & activities.
various interest areas to ϖ Personalization & individualization of itineraries wherein the tourists should be
be identified alongwith able to pick & choose, to suit individual tastes, from a basket of offerings.
anchor destinations in a ϖ Each designated area should be provided with full fledged infrastructure
number of regions for facilities. Package of monetary & financial assistance/ incentives for private
development. participants should be conceived to provide impetus to tourism. There is no
need to prevent foreign ownership or leasing of infrastructure.
ϖ The anchor destinations
ϖ The anchor tourist destination for each ‘Special tourism Area’ should be the
and the surrounding
focus of all promotions & should serve as as gateway city for that particular
‘destinations’
‘Special Tourism Circle’.
representing the
ϖ ‘Special Tourism Circle’ should specifically address basic areas of concern of
products should be
inbound tourists like safety, security, hygiene & cleanliness etc., should be kept
classified as ‘Special
clear of beggars
Tourism Circles’.
ϖ Concept of ‘Project in the Box’ wherein tourism & related projects are cleared
subject to the parties agreeing to comply to a given set of regulatory
conditions.
The final objective for this is to be able to offer & deliver to the tourist, an ‘Experience’
comparable to the best in the world & not a destination
Various regions within India need to be evaluated for potential of developing
them into ‘Special Tourism Circles’.
‘Special Tourism Circles’ should be selected after evaluating the regions in terms of the ‘Infrastructure
Development Index’ & ‘Potential for Exploitation’ which should be based on the following parameters:
ϖ Carrying capacity of the region (in terms of number of tourists)
ϖ Connectivity/ infrastructure (tourist specific/ general)
ϖ Extent of investment required for building/ upgrading the necessary infrastructure to world class levels.
ϖ The attractiveness of returns in terms of return on capital employed, time for breakeven etc (tourist
specific/ general infrastructure)
ϖ Assessment of the region (in terms of safety, manpower availability, tourist interests it can satisfy)
ϖ Popularity amongst the domestic tourists
ϖ Identify boundaries for these areas for necessary notification
ϖ Master plan for the area for the purpose of development
ϖ Develop & allot land for hotels & tourism related services at reasonable rates
ϖ To constitute Special Area Development Authority
Facilitate private sector participation through fiscal incentives & by allowing

private companies to bid for development rights in various circuits/ areas which
could cover various tourism related infrastructure
Based on such evaluation we would have four categories of regions for
development. Some places in each cell need to be identified
High
1 2 There needs to be different strategies for
Regions each of the three categories. Policies
already Goa
should facilitate relevant action on the
exploited like
Development Index
Kerala ground by hotels, airlines, tour operators,

the Golden
Infrastructure
etc.
Triangle
The overall game plan is to move places in
4 3 category 3 to 2, and then to category 1 over
a period of time by planned development of
Low priority domestic and inbound tourism.
North East
for tourism This paper does not seek to classify
Andaman & Nicobar
individual regions. That requires a detailed
Low study. The places mentioned in the cells
are merely illustrative
Low High
Potential for further exploitation
Goa & Kerala, for instance, could provide the platform for the government to start
promoting tourism on the international scene
AN INTEGRATED STRATEGY : PRICING & TAXATION
Pricing
High cost of tourism in India despite indifferent infrastructure is a result of
high taxation and inadequate competition.
ϖ Restrictive policies and the maze of permits / clearances that are the legacy of the licence Raj continue
to hamper the travel and tourism industry. This naturally reduces the infrastructure on the ground and
leads to higher pricing due to shortage.
ϖ Multiplicity of taxes, high licence fees, etc. raise the cost of hotels and travel services. It is a case of the
Central and State Government killing the goose that lays golden eggs. Much more can be earned by
taking inbound travel to India from the measly 2.6 million per year to 5 times that (China : 27 million,
Turkey : 7 million, Thailand : 9 million) than by charging 30-40% taxes which stunt the industry. One
should not forget the domestic tourists (including business) who automatically cut down on such
expenses. Government should look at the elasticity of demand for tourism and not do simplistic
revenue budgeting.
ϖ Discriminatory pricing of air travel, entry to historical sites and sanctuaries weighed against foreigners is
not taken to kindly. We are well within our rights to do so, but the question is, what message does one
want to convey to foreign tourists?
Tourism demand is price elastic
AN INTEGRATED STRATEGY : PRICING & TAXATION
Taxation Policy
Tax Deferment through creation of a ‘Currency Fluctuation Reserve’
The Tourism Industry, one of the largest foreign exchange earners for the country. Income from
Tourism in Foreign Exchange should be ‘Deemed as Exports’. It is crucial for the country to enhance
foreign exchange reserves.
As an incentive, Government should permit the Tourism and thousands of related industries to
create “Foreign Exchange Fluctuation Reserve” to the extent of Net Foreign Exchange (NFE)
earned. A fixed percentage of each years’ profit can be transferred to this reserve account, subject to a
monetary limit on the aggregate amount of such reserve not exceeding the Foreign Exchange exposure.
The annual contribution to such reserve should be tax deductible at the time of transfer of amount to
reserve account. After a period of, say, 5 or 8 years, such amount transferred to reserve account can be
released on payment of tax.
This tax deferment will provide financial support to the Foreign Exchange earner to meet any foreign
exchange risks, which may arise and improve their margins to some extent. At the same time the
Government will get its tax revenue, though after a specified period. A similar incentive mechanism was
operating earlier for investment in plant & machinery as “Development Reserve”.
Tourism Industry could be ‘deemed as Exports’ to the extent of Net Foreign Exchange
earned’ by the Industry
Organisational Mechanism
For Development of Tourism
Government & Industry to Unite Strategically 61

Possible Models 62
Why a Professional Body ? 63
- ‘National Association for Tourism Promotion’ (NATPRO)
‘NATPRO’ - Aims and Objectives 64
Action Steps for ‘NATPRO’ 65
ORGANISATIONAL MECHANISM FOR DEVELOPMENT OF TOURISM
Strategic Government & Industry Partnership
Strategies & policies for development of Tourism in India requires an
effective body for co-ordination between government and industry
Issues
ϖ Action areas/ decisions concerning the tourism industry are out of the jurisdiction of the Ministry of Tourism &
involves other ministries as well. (such as the Ministry of External Affairs, Ministry of Finance, Ministry of Urban
Development, Home Ministry, Ministry of Environment at the centre and various Ministries and Departments at
the State level). They often retard or work at cross purposes despite the best intentions.
ϖ Policy initiatives by the GoI through a series of National Tourism Policies as well as fiscal incentives like tax
breaks etc. have failed to bring life to this industry primarily due to lack of any action at the ground level
ϖ There is a clear need to build & sell the brand of Indian tourism worldwide but there is no single body depicting
the united face of the tourism industry in India
ϖ Presently, the tourism industry is represented by a large number of associations/ bodies. These associations /
bodies are either a part of a larger industry body or are tourism industry related trade bodies (either an industry
association or a trade body). Each association/ body works independently with its own agenda. e.g. ASSOCHAM,
FICCI, CII, IATO, TAAI, FHRAI, apart from Bombay Chamber of Commerce & Industry
ϖ None of the bodies currently monitor, maintain & update detailed reliable data related to the tourism industry
The need is for a mechanism whereby development and implementation of various

strategies & policies are ensured.
Possible Models
There are three models for developing a unified body to represent the tourism
industry
Federation of the various trade Board of Tourism A NASSCOM like format with
Associations that belong to Development in India industry leaders working in close
Travel and Tourism touch with the Government
ϖ Danger of getting labelled or positioned ϖ Not recommended because in ϖ A fully professional private sector
as yet another trade body for lobbying, India, Boards tend to be quasi initiative with a functioning
a constant internal tussle for turf for Government bodies with a good organisation with clear objective and
prioritisation of issues, etc.are the charter but little power or funds to plans
inherent dangers of this model provide action. The organisational ϖ What NASSCOM did for the IT sector
ϖ A co-ordinated panel of the Tourism format too is not conducive. can be done for the tourism sector
cells of CII, FICCI, Assocham, etc. is e.g. Coffee Board, Rubber Board, ϖ The GOI understands this model and
not being considered because these Tea Board, etc. can be persuaded to support it
association do not as yet have a track ϖ However, the Singapore Tourism
record of joint working except on Promotion Board and Dubai
specific issues. Tourism are outstanding examples
ϖ What is required is a fully operational of success
organisation and not a panel, and it
needs to be headed by people who will
rise above the sectarian interests of
one trade or the other, even if they
belong to one
For convenience, the suggested body is referred to as NATPRO

Why a professional body - ‘National Association for Tourism Promotion (NATPRO)’
Prima facie there is a case for the creation of ‘National Association for
Tourism Promotion (NATPRO)’ an apex professional body which can co-
ordinate & promote the interest of the tourism industry with a single voice
Why a professional umbrella body for the Tourism industry ?
ϖ There is a need to co-ordinate the needs and activities of the various trade bodies on the one
hand and co-ordinate the actions of various ministries which act independently but impact the
tourism business
ϖ The option of vesting of all possible powers / responsibilities related to the tourism industry with
a single ministry is also not a practical solution, because of the nature of issues involved.
ϖ Will effectively function as an apex body representing all the major tourism industry related trade
Associations.
ϖ Therefore a full time professional body is required to deal with issues and work for Indian
tourism in a co-ordinated manner.
Such a body would act as the prime catalyst for the growth of tourism & related industry.
‘NATPRO’ - Aims and Objectives
The Government needs to encourage the creation of such a body as it will
complement the role of the Tourism Ministry
Aims & Objectives of ‘NATPRO’
ϖ Vision and Strategy: Build a brand of Indian tourism & work towards building & delivering what the brand promises
to offer
ϖ Maintain close interaction & work actively with the GoI in formulating National Tourism Policy & other related issues
ϖ Maintain & disseminate information & statistical database of tourism & hospitality services related activities
ϖ Take effective steps to create awareness about the economic & social benefits of tourism
ϖ Promote the concept of travel as a leisure activity domestically.
ϖ Encourage members to provide world class quality products & services by laying down industry standards of
service, manpower quality & infrastructure.
ϖ Actively help in the development of tourism related service infrastructure by assuming the role of certifying/
accreditation body for various tourism industry related vocation & training institutions.
ϖ Provide an ideal forum for overseas & domestic players to explore the vast potential of Indian tourism through joint
ventures, strategic & marketing alliances, joint product development by organising business meets with delegations
of various countries.
ϖ Provide members with opportunities to participate at major tourism events across the world & organise tourism
events in India. Involve membership participation in various forums on subjects like HRD, Export, Food & Nutrition,
Housekeeping etc.
Act as advisory, consultative and co-ordination body for tourism industry through
representatives in various committees of the Government of India including various Ministries
like Ministry of Tourism, Ministry of Finance, Ministry of External Affairs etc. The government
should be convinced on the need & utility of such a body to partner the Tourism Ministry
Actionabl;e Agenda - ‘NATPRO’
Action steps for the setting up of a NATPRO
ϖ A few visionaries from the travel and tourism industry who enjoy respect within their respective trade bodies
and the Government should form an Interim Council
ϖ The Interim Council should make a presentation of BCCI’s White Paper on Tourism to the PMO and if
possible to a group of key functionaries including Ministers from all the relevant ministries. The objective of
which will be
a) to get the Government of India to incorporate some of the suggestions in the proposed tourism policy
b) to get the Government of India to bless the formation of NATPRO
ϖ With the help of an initial corpus, the Interim Council should get the charter for NATPRO drawn up,
complete all the legal and procedural formalities for creating NATPRO, develop the organisational
framework required and prepare a Business Plan
ϖ Presentations to the Trade Bodies for a ‘buy-in’ and to start the membership drive
ϖ Recruitment of top flight professionals and setting up of the elected / nominated Executive Council which
will replace the Interim Council
ϖ NATPRO to prioritise activities for the first 6 months and to develop a detailed action plan

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WHITE PAPER ON

BUSINESS CONSULTING GROUP

Bombay Chambers’ membership comprises predominantly the most of large and

The Indian Hotels Co. Ltd.

Thomas Cook (India) Ltd

Secretariat: Oficial Travel Agents Consultants:

Indian Tourism Industry - Growth Analysis 2

An Integrated Strategy : Strategic & Operational Initiatives 4

Operational Mechanism for Development of Tourism 10

Why India Needs Tourism

Indian Tourism Industry - Growth Analysis

Factors Affecting Tourism Industry in India

- Inadequate Promotion & Marketing

An Integrated Strategy : Strategic & Operational Initiatives

• Put Tourism on the Concurrent List of the Constitution of India

An Integrated Strategy : Influence & Facilitate Tourist Decisions

An Integrated Strategy : Branding & Marketing Strategy

An Integrated Strategy : Facilitate Tourist Arrival, Stay & Movement

An Integrated Strategy : Tourism Infrastructure

An Integrated Strategy : Pricing & Taxation

Organisational Mechanism for Development of Tourism

Action Plan - Industry 15

A. Strategic Initiatives by the Government

2. Put Tourism on the ‘Concurrent List’ of the Constitution of India

India 0.9 France 4.7

Spain 9.5 USA 3.9

4. Recognise Enormous Employment Potential of the Hotel, Travel, Entertainment,

5. Lay Down a Master Plan to implement planned and phased Development/Upgradation

Develop ‘Special Tourism Circuits’ (like Telecom circles)

B. Operational Measures as Components of the Strategy

1. Brand Indian Tourism Through Development of ‘National Tourism Logo’

2. Develop an integrated long- term strategy for Marketing

ϖ Idetifying countries for targeting,

3. Recognise the Need for an Organisational Mechanism - ‘NATPRO’

4. Relax Visa Requiremnts

obsolete laws, restrictions and licence permits

Lobby with the Government for Tourism to be given a Priority Status

Promote Establishing ‘NATPRO’ (National Association for Tourism Promotion)

Creation of ‘Special Tourism Circles’

Develop Interactive Web-site for information

Maintenance & Development of Tourism Infrastructure

Theme Promotion - ‘Experience India’ & ‘India Tourism Logo’

Promotion of ‘Tourism Debit Cards’

Tourism & World Trade 18

% of total worldwide exports

8 ❐ Tourism is one of the five

of goods and services

Computer & Office

Textiles & Clothing

Iron & steel

other than fuels

Source : World Tourism Organisation eqpt.

Increasing Travel Account Balance for Declining Travel Account balance

1997-98 1998-99 1999-00

Source : Reserve Bank of India

India has not been able to benefit from this trend

Increase in the level of outbound travel has resulted in corresponding increase in

1991 2000 % change

Forex outflow (outbound tourism) $434 mn. $2138 mn. 393%

India’s Net Foreign Exchange Earnings from Travellers

100% 3.27 0.69 3.56 3.75 0.78 3.92 4.05 0.85

11.94 14.28 13.73 14.62 ‘90 ‘95 ‘97 ‘98 ‘99