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Published by: mishragopal40 on Dec 05, 2010
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Tourism IndustryCHAPTER 1: INDUSTRY AND WORKINGS
 Tourism is an industry that operates on a massively broad scale: itembraces activities ranging from the smallest sea-side hotel; to air-lines, multi-national hotel chains and major international touroperators. Originally, non-traditional industries such as tourismemerged as a solution to strike a balance between ecology andindustry. The tourism industry is now one of the largest sectors earningforeign exchange for the exchequer. In the face of such benefits, manycountries have started assigning due weightage to the tourism industryin their national development agenda.
 Tourism statistics:
Tourism is one of the world's fastest growing industries at presentand holds the status of the world's no. 1 industry.
The tourism industry as a whole is presently estimated to earn overUS$ 3.5 trillion worldwide.
The industry creates a job every 2.4 seconds with every one of thosedirect jobs creating another 11 indirect ones.
Spending on tourism amounts to 5%-10% of total consumer,spending in a year worldwide.
India's share of the total market is a pittance at 0.51%. The non-tourist countries like Malaysia and Indonesia get much more touriststhan India.
However, the average duration of stay of foreign tourist in India isone of the highest in the world. On an average, it exceeds 27 days inthe case of non-package tourists and is 14 days in the case of packagetourists.
Tourism has the distinction of being the third largest export industryafter gems and jewellery and readymade garments in India.
The Tourism industry's foreign exchange earnings in India are around$3.2 billion. Tourism is the highest foreign exchange earner if weconsider the fact that net value addition in Gems and jewellery is lessthan 30 % whereas, in tourism it is more than 90 %.
 
India: Tourism Revenues and Expenditures 1990-2010
It also has one of the best employment multipliers when comparedwith any other industry in India. It generates maximum jobopportunities, as it provides direct employment to 9.1 million peopleand indirect employment to another 12.4 million. But these statisticsdo not appear so impressive when viewed in the global perspectiveand compared with that of other countries shown in the graph below.
Tourists Arrivals and Receipts From Tourism 1996Source:
 1. Report,
World Tourism Organization
- 1996.2. Study by
Mahajan
and
 Aibara
, Consultants to the
Tourism and HotelIndustry 
, 1997.
 
Tourism has been a neglected sector in India. Though it wasrecognized as a priority sector in the Seventh Five Year Plan, hardlyanything was done to promote this industry.
Though the government has promised to give industry status totourism, still, budgetary support for this department is a mere Rs. 379crore. This is despite a total tax collection of about Rs. 2000 crore in1996 from this sector.
The tourism industry currently stands 127
th
on the list of priorities of the Indian government. It is true that India has yet to reach theprosperity level where leisure activity can be included in the prioritysector but, if solving the country's unemployment and foreignexchange problems are on the top of the national agenda, thepotential of this industry cannot be neglected.
A S.L.E.P.T. Analysis Of The Tourism Industry InIndia:
Social:
 Tourism was always looked upon as something that led to thedestruction of the social fabric of a place. The more the amount of outside people coming into a place, the more the perceived risk of thatplace losing its identity. A good example is Goa. From the late 60's tothe early 80's when the Hippy culture was at its height, Goa was ahaven for such hippies. Here they came in thousands and changed thewhole culture of the state. This had a ripple effect on the country.People became cautious, especially of the international tourists.Whenever a certain place became famous, the example of Goa wascited to discourage the inflow of international tourists.However some places such as Kerala and Rajasthan have been able tostrike a balance between their own culture and the demands of theinternational tourists and have profited handsomely in the bargain.People are now adopting themselves to the fact that tourism pays andit can be a major source of income for them.In addition, tourism as a form of recreation has really caught on.People themselves have started traveling and are willing to travel to aplace that is out of the way and exotic. While traditionally traveling ona holiday meant going to a hill station or a beach, now people arewilling to go in for adventure tourism and also visit places that mightbe exotic and cannot really be called hospitable. For example, now

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